ABC Ltd Was Registered as a Company on 1 July

Multiple Choice

ABC Ltd was registered as a company on 1 July 2017. On 4 July 2017, ABC Ltd issued a prospectus offering 250 000 ordinary shares at an issue price of $3.50 each, payable $2.50 on application and $1.00 on allotment. Applications closed on 1 August 2017 with the company having received applications for 300 000 shares. The shares were allotted on 15 August 2017, with the over-subscription amount being refunded to unsuccessful applicants. All allotment money was received by 31 August 2017. Following the allotment, the balance in the share capital account would be:

A) $750 000 credit.
B) $875 000 credit.
C) $625 000 credit.
D) $1 050 000 credit.