Question

Iron Products Ltd. issued 5,000; 9% Debentures of ₹ 100 each at a premium of ₹ 40 payable as follows;
(i) ₹ 40 , including premium of ₹ 10 on applications;
(ii) ₹ 45, including premium of ₹ 15 on allotment ; and
(iii) Balance as first and final call.
The issue was subscribed and allotment made. Calls were made and due amount was received .
Pass Journal entries .

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (5,000×40)	Dr.		2,00,000
	To Debenture Application A/c				2,00,000
	(Application money received)
	Debenture Application A/c	Dr.		2,00,000
	To 9% Debentures A/c (5,000×30)				1,50,000
	To Security Premium Reserve A/c (5,000×10)				50,000
	(Application money adjusted)
	Debenture Allotment A/c (5,000×45)	Dr.		2,25,000
	To 9% Debentures A/c (5,000×30)				1,50,000
	To Security Premium Reserve A/c (5,000×15)				75,000
	(Allotment money due)
	Bank A/c (5,000×45)	Dr.		2,25,000
	To Debenture Allotment A/c				2,25,000
	(Allotment money received)
	Debenture First and Final call A/c (5,000×55)	Dr.		2,75,000
	To 9% Debentures A/c (5,000×40)				2,00,000
	To Security Premium Reserve A/c (5,000×15)				75,000
	(First call money due)
	Bank A/c	Dr.		2,75,000
	To Debenture Final and Final call A/c				2,75,000
	(First Call money Received)