Multiple Choice
Smith Ltd was registered as a company on 1 July 2013.On 4 July 2013,Smith Ltd issued a prospectus offering 300 000 ordinary shares at an issue price of $4.00 each,payable $2.00 on application and $2.00 on allotment.Applications closed on 1 August 2013 with the company having received applications for 330 000 shares.The shares were allotted on 15 August 2013,with the over-subscription amount being refunded to unsuccessful applicants.All allotment money was received by 31 August 2013.Following the allotment,the amount transferred from the cash trust account to the cash account would be:
A) $600 000.
B) $1 320 000.
C) $1 200 000.
D) $660 000.
Correct Answer:
Verified
Correct Answer:
Verified
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