Question

On 1st April 2023, Vishesh Co. Ltd. made an issue, which was fully subscribed, of 8,000, 5% Debentures of ₹ 100 each at a premium of 10% repayable at par at the end of 10 years. The debentures were allotted on 31st August 2023, subscriptions being payable:

10% with Application
50% (along with premium) on Allotment
20% with First Call
Balance on the Second & Final Call

One debenture holder holding 200 debentures paid the First Call with Allotment.

You are required to prepare the Cash Book for the year 2023-24 to record the above issue of debentures. (Ignore interest on debentures).

Answer 1

Dr.	In the Books of Vishesh Co. Cash Book		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Debenture Application A/c	80,000	By Balance c/d	8,80,000
To Debenture Allotment A/c	4,80,000
To Debenture first call A/c	4,000
To Debenture first call A/c	1,56,000
To Debenture final call A/c	1,60,000
	8,80,000		8,80,000