Following the allotment the balance in the Share Capital account would be:

Question

Quizplus · Accepted Answer

Allotment of shares increases the share capital of a company. The question states that 25,000 shares were allotted at $10 per share, which means the total amount received by the company is $250,000. This amount will be credited to the Share Capital account, as it represents the amount raised by issuing shares. Therefore, the correct answer is B, which states that the balance in the Share Capital account would be $250,000 credit after the allotment.

Following the Allotment the Balance in the Share Capital Account