The journal entry used to record money due on the allotment of shares is

Question

Quizplus · Accepted Answer

When shares are allotted, a company may require the shareholders to pay only a part of the total amount of the shares upfront, with the remainder being due at a later date. This initial payment is called an allotment. Therefore, the journal entry used to record money due on the allotment of shares would be to debit Allotment (an asset account representing the amount due on the shares) and credit Share Capital (a liability account representing the value of the shares issued).

The Journal Entry Used to Record Money Due on the Allotment