When a company issues shares in the open market and the amount is payable in instalments, what is the chronological sequence of structural amounts demanded/processed by the company? A. Money received on callsB. Money due on callsC. Allotment money receivedD. Application money transferred to Share Capital A/cE. Allotment money due Choose the correct answer from the options given below:
- AD, C, B, A, E
- BD, E, C, B, A
- CD, C, A, B, E
- DD, E, C, A, B
Solution & Step-by-step Explanation
The process of share installment processing occurs in the following sequence: First (D): Application money is received and then successfully transferred to the Share Capital Account.Second (E): Allotment money is formally made due.Third (C): Shareholders pay and the Allotment money is received.Fourth (B): Call money is formally made due.Fifth (A): Call money is successfully received.Hence, the logical accounting order is D, E, C, B, A.