Question

Govind Ltd. issued 5,000, $12\%$ of Rs 100 each, at par, payable as follows:

On Appliacation Rs 20; On Allotment Rs 20; On first Call Rs 30; and On Final Call Rs 30.

Public applied for 6,000 debentures. Applications for 4,500 debentures were accepted in full. Applications for 800 debentures were allotted 500 debentures and applications for 700 debentures were rejected. Money overpaid on applications was utilised towards allotment.

Pass journal entries assuming that all moneys due were duly received, except final call on 200 debentures.

Answer 1

Journal of govind Ltd
$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{L.F}& \text{Dr (Rs)}& \text{Cr. (Rs)}\\ & \text{Bank A/c}& Dr& & 1,20,000& \\ & \text{To}12\%\text{Debenture Application A/c}& & & & 1,20,000\\ & \text{(Application money received on 6,000 debentures)}& & & & \\ & at\text{Rs 20 each}& & & & \\ & 12\%\text{Debenture Application A/c}& Dr& & 1,20,000& \\ & \text{To}12\%\text{Debentures A/c}& & & & 1,00,000\\ & \text{To}12\%\text{Debenture Allotment A/c}& & & & 6,000\\ & \text{To Bank A/c}& & & & 14,000\\ & \text{(Application money transferred)}& & & & \\ & \text{Bank A/c}& Dr& & 1,00,000& \\ & \text{To}12\%\text{Debentures Allotment A/c}& & & & 1,00,000\\ & \text{(Allotment money received on 5,000 debentures at Rs 20 each)}& & & & \\ & \text{12\% Debentures Allotment A/c}& \text{Dr}& & 94,000& \\ & \text{To}12\%\text{Debenture A/c}& & & & 94,000\\ & \text{(Balance of allotment money transferred to debetures account, i.e. Rs 1,00,000- Rs 6,000)}& & & & \\ & \text{Bank A/c}& \text{Dr}& & 1,50,000& \\ & \text{To}12\%\text{Debentures First Call A/c}& & & & 1,50,000\\ & \text{(First call money received)}& & & & \\ & \text{12\% Debentures First Call A/c}& \text{Dr}& & 1,50,000& \\ & \text{To}12\%\text{Debentures A/c}& & & & 1,50,000\\ & \text{(First call money received)}& & & & \\ & \text{Bank A/c}& \text{Dr}& & 1,50,000& \\ & \text{To}12\%\text{Debentures Second Call A/c}& & & & 1,50,000\\ & \text{(Second and Final call money received)}& & & & \\ & \text{Second and Final Call A/c}& \text{Dr}& & 1,44,000& \\ & \text{To}12\%\text{Debenture A/c}& & & & 1,44,000\\ & \text{(Second and final call money on 4,800 transferred to debentures account)}& & & & \\ & \text{debentures at 30 per Debenture}& & & & \end{array}$