Question

Ridyum Limited issued 5,000, 9% debentures of ₹ 500 each at a premium of 10%. The amount was payable as follows:

On Application - ₹ 200 per debenture

On Allotment - Balance (including premium)

The debentures were fully subscribed and all amounts were duly received. Pass the necessary journal entries for issue of debentures in the books of Ridyum Limited.

Answer 1

Journal
Date	Particulars	L.F.	Amount (₹)	Amount (₹)
	Bank A/c    ...Dr.		10,00,000	-
	To Debenture Application A/c		-	10,00,000
	(Being application money received)
	Debenture Application A/c      ...Dr.		10,00,000	-
	To 9% Debentures A/c		-	10,00,000
	(Being application money transferred to 9% debentures)
	Debenture Allotment A/c      ...Dr.		17,50,000	-
	To 9% Debentures A/c		-	15,00,000
	To Security Premium A/c		-	2,50,000
	(Being amount due on allotment)
	Bank A/c    ...Dr.		17,50,000	-
	To Debenture Allotment A/c		-	17,50,000
	(Being amount received on allotment)