An Allotment Account,being a Receivable Account from the Subscribers in a Share

question 38

True/False

An allotment account,being a receivable account from the subscribers in a share issue,is presented under current assets in the statement of financial position.

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Definitions:

Wages Expense

This is the total amount of money paid to employees for work performed during a specific period.

Payroll

The total amount of money paid by a business to its employees over a set period, including wages, salaries, bonuses, and deductions.

Retained Earnings

The portion of net income that is not distributed as dividends to shareholders but is kept by the company for reinvestment or to pay off debt.

Ledger Accounts

Record-keeping systems that track financial transactions through debits and credits to maintain the financial health and status of an entity.