Question

A.Ltd. issued 10,000, 10% Debentures of Rs 100 each at a premium of 5% payable as follows:

Rs 10 on Application;

Rs 20 along with premium on allotment and balance on First and Final call. Record necessary Journal Entries.

Answer 1

Books of A. Ltd. Journal
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
	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 @ Rs 10 each)
	10% Debentures Application A/c		Dr.		1,00,000
		To 10% Debenture A/c				1,00,000
	(Application money @ Rs 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 @ Rs 25 each including premium Rs 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 @ Rs 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 @ Rs 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 @ Rs 70 each for 10,000 10% Debentures)