Exercise

Amar Ltd. issued 10,000 12% Debentures of Rs 100 each payable Rs 30 on application and remaining amount on allotment. The public applied for Rs 9,000 debentures which were fully allotted and on the relevant allotment money duly received. Give journal entries in the books of Amar Ltd.

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Solution

Book of Aman Ltd.

Journal Entry

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

Bank A/c

Dr.

2,70,000

To Debenture Application A/c

2,70,000

(Debenture application received on 9,000, 12% Debentures of Rs 30 each)

Debenture Application A/c

Dr.

2,70,000

To 12% Debentures A/c

2,70,000

(Debenture application money transferred to 12% Debenture A/c)

Debenture Allotment A/c

Dr.

6,30,000

To 12% Debentures A/c

6,30,000

(Debenture allotment due on 9,000 12% Debenture of Rs 70 each)

Bank A/c

Dr.

6,30,000

To Debenture Allotment A/c

6,30,000

(Debenture allotment money received)

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Exercise

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Pass necessary Journal entries in the books of the company.

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Book of Aman Ltd.
Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		2,70,000
	To Debenture Application A/c				2,70,000
	(Debenture application received on 9,000, 12% Debentures of Rs 30 each)

	Debenture Application A/c	Dr.		2,70,000
	To 12% Debentures A/c				2,70,000
	(Debenture application money transferred to 12% Debenture A/c)

	Debenture Allotment A/c	Dr.		6,30,000
	To 12% Debentures A/c				6,30,000
	(Debenture allotment due on 9,000 12% Debenture of Rs 70 each)

	Bank A/c	Dr.		6,30,000
	To Debenture Allotment A/c				6,30,000
	(Debenture allotment money received)

Exercise Amar Ltd. issued 10,000 12% Debentures of Rs 100 each payable Rs 30 on application and remaining amount on allotment. The public applied for Rs 9,000 debentures which were fully allotted and on the relevant allotment money duly received. Give journal entries in the books of Amar Ltd.

Exercise

Amar Ltd. issued 10,000 12% Debentures of Rs 100 each payable Rs 30 on application and remaining amount on allotment. The public applied for Rs 9,000 debentures which were fully allotted and on the relevant allotment money duly received. Give journal entries in the books of Amar Ltd.