The correct answer is: C. Share application account
A share application account is a temporary account used to record the amount of money received from shareholders when they apply for shares in a company. The amount received is credited to the share application account and is then transferred to the share capital account when the shares are allotted.
A share capital account is a permanent account that records the amount of money raised by a company through the issue of shares. The amount received from the issue of shares is credited to the share capital account and is then used to pay for the company’s assets and liabilities.
A share allotment account is a temporary account used to record the amount of money received from shareholders when they are allotted shares in a company. The amount received is credited to the share allotment account and is then transferred to the share capital account when the shares are fully paid.
A calls in advance account is a temporary account used to record the amount of money received from shareholders in advance of the final call on their shares. The amount received is credited to the calls in advance account and is then transferred to the share capital account when the final call is made.
In conclusion, the money received at the time of share application when adjusted at the time of allotment is credited to the share application account.