Z Ltd. issued 10,000, 12% Debentures of Rs. 100 each at discount of 10% payable in fall on application by 31st May, 2010. Applications were received for 12,000 Debentures. Debentures were allocated on 9th June, 2010.
Excess money was refunded. Amount that will appear in balance sheet as 12% Debenture will be _____.

Rs. 11,00,000

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Rs. 10,00,000

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Rs. 9,00,000

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Rs. 10,80,000

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Solution

The correct option is B Rs. 10,00,000
n case where application is more than issued debentures, then only issued debentures appear on the balance sheet. Hence, amount that will appear in balance sheet as 12% Debenture will be 10000*Rs 100 i.e. Rs 10,00,000.

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Similar questions

Q. ZPA Ltd. issued 10,000, 12% Debentures of Rs 100 each at per payable in fall on application by 1st April, 2010. Applications were received for 11,000 Debentures. Debentures were allocated on 7th April, 2010. Excess money was refunded.
Amount that will appear in balance sheet as 12% Debenture will be _____.

Q. Vijay Laxmi Ltd. invited applications for 10,000; 12% Debentures of ₹ 100 each at a premium of ₹ 70 per debenture .The full amount was payable on application.
Applications were received for 13,500 debentures. Applications for 3,500 debentures were rejected and application money was refunded . Debentures were allotted to the remaining applications .

Exercise

Archana Ltd. issued 2,000 10% Debentures of Rs 100 each at a premium of Rs 10 per Debenture payable as follows:

On Application	Rs 50
On Allotment	Rs 60 (Premium included Rs 10)

The Debentures were fully subscribed and all money was duly received.

Pass Journal entries and show how the amounts appear in Balance Sheet.

Q. 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.

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.

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The correct option is B Rs. 10,00,000n case where application is more than issued debentures, then only issued debentures appear on the balance sheet. Hence, amount that will appear in balance sheet as 12% Debenture will be 10000*Rs 100 i.e. Rs 10,00,000.

The correct option is B Rs. 10,00,000
n case where application is more than issued debentures, then only issued debentures appear on the balance sheet. Hence, amount that will appear in balance sheet as 12% Debenture will be 10000*Rs 100 i.e. Rs 10,00,000.