ABC Ltd. issued 40,000; 10% Debentures of ₹ 100 each at par for cash payable in full along with the application. Applications were received for 60,000 debentures . Debentures were allotted and excess application money was refunded. Pass Journal entries in the books of the company.

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Solution

Journal

Date

ABCParticulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

Bank A/c (60,000 $\times$ 100)

Dr.

60,00,000

To Debenture Application and Allotment A/c

60,00,000

(Received application money on 60,000 Debenture)

Debenture Application and Allotment A/c

Dr.

60,00,000

To 10% Debentures A/c (40,000 $\times$ 100)

40,00,000

To Bank A/c

20,00,000

(Application money transferred to Debentures A/c)

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Journal
Date	ABCParticulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (60,000 $\times$ 100)	Dr.		60,00,000
	To Debenture Application and Allotment A/c				60,00,000
	(Received application money on 60,000 Debenture)

	Debenture Application and Allotment A/c	Dr.		60,00,000
	To 10% Debentures A/c (40,000 $\times$ 100)				40,00,000
	To Bank A/c				20,00,000
	(Application money transferred to Debentures A/c)