When shares are oversubscribed and money returned to unsuccessful applicants, the entry to record such money is to debit

A.

Application and allotment account and credit unsubscribed shares

B.

Application and allotment account and credit cash

C.

Oversubscribed shares and credit allotment account

D.

Oversubscribed shares and credit allotment account

Correct answer is B

You will debit application and allotment account and credit cash because monies that have been collected from the public wil have to be returned