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Question -

A Ltd. issued 10,000, 10% Debentures of ₹ 100 each at a premium of 5% payable as follows:
₹ 10 on Application;
₹ 20 along with premium on allotment and balance on First and Final call. Record necessary Journal Entries.



Answer -

Books of A. Ltd.

 

Journal

 

Date

Particulars

L.F.

Debit

Amount

Credit

Amount

Bank A/c

Dr.

1,00,000

To 10% Debentures Application A/c

1,00,000

(Application money received for 10,000, 10% Debenture Application @ ₹ 10 each)

10% Debentures Application A/c

Dr.

1,00,000

To 10% Debenture A/c

1,00,000

(Application money @ ₹ 10 each transferred to

10% Debenture Account)

10% Debenture Allotment A/c

Dr.

2,50,000

To 10% Debentures A/c

2,00,000

To Securities Premium A/c

50,000

(Allotment due @ ₹ 25 each including premium ₹ 5 on

10,000, 10% Debentures)

Bank A/c

Dr.

2,50,000

To 10% Debenture Allotment A/c

2,50,000

(Allotment money received on allotment @ ₹ 25 each for

10,000 10% Debentures)

10% Debenture First and Final Call A/c

Dr.

7,00,000

To 10% Debenture A/c

7,00,000

(First and Final Call @ ₹ 70 each on 10,000

10% Debentures due)

Bank A/c

Dr.

7,00,000

To 10% Debenture First and Final Call A/c

7,00,000

(Debenture First and Final Call received @ ₹ 70 each for

10,000 10% Debentures)

 

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