XYZ Ltd was registered as a company on 1 July 2013.On 4 July 2013,ABC Ltd issued a prospectus offering 200 000 ordinary shares at an issue price of $5.00 each,payable $3.00 on application and $2.00 on allotment.Applications closed on 1 August 2013 with the company having received applications for 220 000 shares.After application but prior to allotment,the balance in the application account would be:
A) $600 000 credit.
B) $1 000 000 credit.
C) $660 000 debit.
D) $660 000 credit.
Correct Answer:
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