Question

Super Seals Ltd. issued 10,000, 8% Debentures of ₹ 100 each at par for subscription payable ₹ 40 on application, ₹ 30 on allotment and balance as first and final call. Debentures issued were applied and allotment was made. First and Final Call is yet to be made.

You are required to pass the necessary Journal entries.

Answer 1

Journal Entries In the Books of Super Seals Ltd.
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
1.	Bank A/c Dr.		4,00,000
	To Debentures Application A/c			4,00,000
	(Application money received on 10,000 debentures)
2.	Debentures Application A/c Dr.		4,00,000
	To 8% Debentures A/c			4,00,000
	(Application money transferred to Debentures A/c)
3.	Debentures Allotment A/c Dr.		3,00,000
	To 8% Debentures A/c			3,00,000
	(Allotment money due @ ₹ 30 per debenture)
4.	Bank A/c Dr.		3,00,000
	To Debentures Allotment A/c			3,00,000
	(Allotment money received)

Working note:

Application money:

10,000 × ₹ 40 = ₹ 4,00,000

Allotment money:

10,000 × ₹ 30 = ₹ 3,00,000

First and Final Call:

₹ 100 − ₹ 40 − ₹ 30 = ₹ 30 per debenture