application and allotment account


application and allotment account
A ledger account used in the process of applications for and allotment of a company's share capital. When the shares are offered, potential shareholders (applicants) apply to buy them on an application form with a cheque to cover the cost of the shares. This is known as the application process. On receipt of the applicants' money, the company debits the bank account with the cash received and credits an application and allotment account. When the shares are allocated to the applicants they become the allottees, i.e. the new shareholders; this is known as the process of allotment. The book-keeping entries on allotment involve debiting the application and allotment account and crediting the share capital or share premium, as appropriate. If the applications exceed the number of shares available, each applicant receives a scaled down number of shares and the excess application money is returned. The application and allotment account may also be split into two separate accounts: the application account and the allotment account.

Accounting dictionary. 2014.

Look at other dictionaries:

  • roads and highways — ▪ transportation Introduction       traveled way on which people, animals, or wheeled vehicles move. In modern usage the term road describes a rural, lesser traveled way, while the word street denotes an urban roadway. Highway refers to a major… …   Universalium

  • RELIGIOUS LIFE AND COMMUNITIES — Jews UNDER OTTOMAN RULE The Jews of the pre Zionist old yishuv, both sephardim (from the Orient) and ashkenazim (of European origin), dedicated their lives to the fulfillment of religious precepts: the study of the torah and the meticulous… …   Encyclopedia of Judaism

  • education — /ej oo kay sheuhn/, n. 1. the act or process of imparting or acquiring general knowledge, developing the powers of reasoning and judgment, and generally of preparing oneself or others intellectually for mature life. 2. the act or process of… …   Universalium

  • Russia — /rush euh/, n. 1. Also called Russian Empire. Russian, Rossiya. a former empire in E Europe and N and W Asia: overthrown by the Russian Revolution 1917. Cap.: St. Petersburg (1703 1917). 2. See Union of Soviet Socialist Republics. 3. See Russian… …   Universalium

  • japan — japanner, n. /jeuh pan /, n., adj., v., japanned, japanning. n. 1. any of various hard, durable, black varnishes, originally from Japan, for coating wood, metal, or other surfaces. 2. work varnished and figured in the Japanese manner. 3. Japans,… …   Universalium

  • Japan — /jeuh pan /, n. 1. a constitutional monarchy on a chain of islands off the E coast of Asia: main islands, Hokkaido, Honshu, Kyushu, and Shikoku. 125,716,637; 141,529 sq. mi. (366,560 sq. km). Cap.: Tokyo. Japanese, Nihon, Nippon. 2. Sea of, the… …   Universalium

  • Germany — /jerr meuh nee/, n. a republic in central Europe: after World War II divided into four zones, British, French, U.S., and Soviet, and in 1949 into East Germany and West Germany; East and West Germany were reunited in 1990. 84,068,216; 137,852 sq.… …   Universalium

  • Society of the People's Republic of China — The People s Republic of China, the world s largest society, is united by a set of values and institutions that cut across extensive linguistic, environmental, and subcultural differences. Chinese society, since the second decade of the twentieth …   Wikipedia

  • tonga — /tong geuh/, n. a light, two wheeled, horse drawn vehicle used in India. [1870 75; < Hindi tanga] * * * Tonga Introduction Tonga Background: The archipelago of The Friendly Islands was united into a Polynesian kingdom in 1845. It became a… …   Universalium

  • Tonga — /tong geuh/, n. a Polynesian kingdom consisting of three groups of islands in the S Pacific, NE of New Zealand: a former British protectorate. 100,105; ab. 270 sq. mi. (700 sq. km). Cap.: Nukualofa. Also called Tonga Islands, Friendly Islands.… …   Universalium