G.Ltd. issued 75,00,000, 6% Debenture of Rs 50 each at par payable Rs 15 on application and Rs 35 on allotment, redeemable at par after 7 years from the date of issue of debenture. Record necessary entries in the books of Company.

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Solution

Book of G. Ltd.

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

Bank A/c

Dr.

11,25,00,000

To 6% Debenture Application A/c

11,25,00,000

(Application money @ Rs 15 each received for 75,00,000 debentures)

6% Debenture Application A/c

Dr.

11,25,00,000

To 6% Debenture A/c

11,25,00,000

(Application money of 75,00,000 debentures transferred to 6% Debentures Account)

6% Debenture Allotment A/c

Dr.

26,25,00,000

To 6% Debenture A/c

26,25,00,000

(Allotment money @ Rs 35 each due for 75,00,000 debentures )

Bank A/c

Dr.

26,25,00,000

To 6% Debenture Allotment A/c

26,25,00,000

(Allotment money received @ Rs 35 each on 75,00,000 debentures)

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Book of G. Ltd. Journal
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c		Dr.		11,25,00,000
		To 6% Debenture Application A/c				11,25,00,000
	(Application money @ Rs 15 each received for 75,00,000 debentures)

	6% Debenture Application A/c		Dr.		11,25,00,000
		To 6% Debenture A/c				11,25,00,000
	(Application money of 75,00,000 debentures transferred to 6% Debentures Account)

	6% Debenture Allotment A/c		Dr.		26,25,00,000
		To 6% Debenture A/c				26,25,00,000
	(Allotment money @ Rs 35 each due for 75,00,000 debentures )

	Bank A/c		Dr.		26,25,00,000
		To 6% Debenture Allotment A/c				26,25,00,000
	(Allotment money received @ Rs 35 each on 75,00,000 debentures)