Question

Raj Ltd . issued 5,000;  8% Debentures of ₹ 100 each at a premium of 5% payable as follows:
₹ 10 on application ; ₹ 20 along with premium on allotment and balance on first and final call.
Pass necessary Journal entries.

Answer 1

Books of Raj Ltd.
Journal

Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		50,000
	To 8% Debenture Application A/c				50,000
	(Debenture application money received for 5,000 debentures at Rs 10 each)
	8% Debenture Application A/c	Dr.		50,000
	To 8% Debentures A/c				50,000
	(Debenture application money transferred to 8% Debentures A/c)
	8% Debenture Allotment A/c	Dr.		1,00,000
	To 8% Debentures A/c				75,000
	To Securities Premium A/c				25,000
	(Debenture allotment due on 5,000 8% Debentures at Rs 20 including premium of Rs 5)
	Bank A/c	Dr.		1,00,000
	To 8% Debentures Allotment A/c				1,00,000
	(Debenture allotment money received)
	8% Debentures First and Final Call A/c	Dr.		3,75,000
	To 8% Debenture A/c				3,75,000
	(Debenture first and final call due on 5,000 Debentures at Rs 75 each)
	Bank A/c	Dr.		3,75,000
	To 8% Debenture First and Final Call A/c				3,75,000
	(Debenture first and final call received)