{"id":57450,"date":"2024-04-16T01:02:13","date_gmt":"2024-04-16T01:02:13","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=57450"},"modified":"2024-04-16T01:02:13","modified_gmt":"2024-04-16T01:02:13","slug":"abc-ltd-was-incorporated-with-an-authorised-share-capital-of-rs-100000-equity-shares-of-rs-10-each-the-board-of-directors-of-the-company-decided-to-allot-10000-shares-credited-as-fully-paid-to-t","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/abc-ltd-was-incorporated-with-an-authorised-share-capital-of-rs-100000-equity-shares-of-rs-10-each-the-board-of-directors-of-the-company-decided-to-allot-10000-shares-credited-as-fully-paid-to-t\/","title":{"rendered":"ABC Ltd was incorporated with an authorised share capital of Rs. 1,00,000 equity shares of Rs. 10 each. The Board of Directors of the company 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?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Promoter&#8217;s A\/c&#8221; option2=&#8221;Service&#8217;s A\/c&#8221; option3=&#8221;Goodwill A\/c&#8221; option4=&#8221;Share Capital A\/c&#8221; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is D. Share Capital A\/c.<\/p>\n<p>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).<\/p>\n<p>The other options are incorrect because:<\/p>\n<ul>\n<li>Promoter&#8217;s A\/c is a nominal account that is credited with the amount received from the promoters for their shares.<\/li>\n<li>Service&#8217;s A\/c is a revenue account that is credited with the amount of money received for services rendered.<\/li>\n<li>Goodwill A\/c is an intangible asset account that is credited with the amount of goodwill paid to the promoters.<\/li>\n<\/ul>\n<p>I hope this explanation is helpful. Please let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Promoter&#8217;s A\/c&#8221; option2=&#8221;Service&#8217;s A\/c&#8221; option3=&#8221;Goodwill A\/c&#8221; option4=&#8221;Share Capital A\/c&#8221; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-57450","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>ABC Ltd was incorporated with an authorised share capital of Rs. 1,00,000 equity shares of Rs. 10 each. The Board of Directors of the company 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?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/abc-ltd-was-incorporated-with-an-authorised-share-capital-of-rs-100000-equity-shares-of-rs-10-each-the-board-of-directors-of-the-company-decided-to-allot-10000-shares-credited-as-fully-paid-to-t\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ABC Ltd was incorporated with an authorised share capital of Rs. 1,00,000 equity shares of Rs. 10 each. The Board of Directors of the company 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?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Promoter&#8217;s A\/c&#8221; option2=&#8221;Service&#8217;s A\/c&#8221; option3=&#8221;Goodwill A\/c&#8221; option4=&#8221;Share Capital A\/c&#8221; correct=&#8221;option4&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/abc-ltd-was-incorporated-with-an-authorised-share-capital-of-rs-100000-equity-shares-of-rs-10-each-the-board-of-directors-of-the-company-decided-to-allot-10000-shares-credited-as-fully-paid-to-t\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T01:02:13+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"ABC Ltd was incorporated with an authorised share capital of Rs. 1,00,000 equity shares of Rs. 10 each. The Board of Directors of the company 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?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/abc-ltd-was-incorporated-with-an-authorised-share-capital-of-rs-100000-equity-shares-of-rs-10-each-the-board-of-directors-of-the-company-decided-to-allot-10000-shares-credited-as-fully-paid-to-t\/","og_locale":"en_US","og_type":"article","og_title":"ABC Ltd was incorporated with an authorised share capital of Rs. 1,00,000 equity shares of Rs. 10 each. The Board of Directors of the company 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?","og_description":"[amp_mcq option1=&#8221;Promoter&#8217;s A\/c&#8221; option2=&#8221;Service&#8217;s A\/c&#8221; option3=&#8221;Goodwill A\/c&#8221; option4=&#8221;Share Capital A\/c&#8221; correct=&#8221;option4&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/abc-ltd-was-incorporated-with-an-authorised-share-capital-of-rs-100000-equity-shares-of-rs-10-each-the-board-of-directors-of-the-company-decided-to-allot-10000-shares-credited-as-fully-paid-to-t\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-16T01:02:13+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/abc-ltd-was-incorporated-with-an-authorised-share-capital-of-rs-100000-equity-shares-of-rs-10-each-the-board-of-directors-of-the-company-decided-to-allot-10000-shares-credited-as-fully-paid-to-t\/","url":"https:\/\/exam.pscnotes.com\/mcq\/abc-ltd-was-incorporated-with-an-authorised-share-capital-of-rs-100000-equity-shares-of-rs-10-each-the-board-of-directors-of-the-company-decided-to-allot-10000-shares-credited-as-fully-paid-to-t\/","name":"ABC Ltd was incorporated with an authorised share capital of Rs. 1,00,000 equity shares of Rs. 10 each. 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