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Question
Share Application Account is in the nature of ______.
Options
Real Account
Personal Account
Nominal Account
None of the above
MCQ
Fill in the Blanks
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Solution
Share Application Account is in the nature of Personal Account.
Explanation:
The Share Application Account is the account where money received from applicants for shares is first recorded. Since it represents the company’s liability to the applicants (until shares are allotted), it is treated as a Personal Account.
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Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.201]
