Malaysia Company Ltd decided to issue 200,000 ordinary shares for $2.10c each, payable in instalments, 40c on application, $1 on allotment and the balance payable at the discretion of the company. Applications were received for 220,000 shares. The shares were allotted by the directors at a meeting held a week after the close of applications. After refunding applications for 20,000 shares the correct journal entry to transfer the application money to the share capital account is:

Select one:

a. Debit application $88,000; credit trust bank account $88,000 b. Debit trust bank account $80,000; credit share capital account $80,000 c. Debit application $88,000; credit share capital $88,000 d. Debit application $80,000; credit share capital $80,000