ABC Ltd was incorporated with an authorized share capital of Rs. 1,00,000 equity shares of Rs. 10 each. The board of directors decided to allot 10,000 shares credited as fully paid to the promoters of the company for their services. Which account should be debited in the books of ABC Ltd?

The correct answer is D. Share capital account.

When a company allots shares to its promoters, the share capital account is debited with the face value of the shares allotted. In this case, the face value of each share is Rs. 10, so the share capital account will be debited by Rs. 100,000 (10,000 shares x Rs. 10 per share).

The other options are incorrect because:

• Promoter’s account is a liability account that is used to record the amount that the promoters owe to the company. In this case, the promoters are not owing anything to the company, so this account should not be debited.
• Service’s account is an expense account that is used to record the cost of services that the company has received. In this case, the company is not receiving any services, so this account should not be debited.
• Goodwill account is an intangible asset account that is used to record the value of the company’s reputation and other intangible assets. In this case, the company is not acquiring any intangible assets, so this account should not be debited.