Question

X Ltd . issued 12,000; 8% Debentures of ​₹  100 each at a discount of 5% payable as 25% on application;20% on allotment and balance after three months.
Pass Journal entries. 

Answer 1

Face Value of Debenture = Rs 100

Discount (Rs 100 × 5%) = Rs 5

∴ Issue Price = Rs 95

Amount Payable as: 

On Application (25%)	Rs 25 per debenture
On Allotment (20%)	Rs 20 (25 – 5) per debenture
On First and Final Call (50%)	Rs 50 per debenture

Journal

Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		3,00,000
	To 8% Debenture Application A/c				3,00,000
	(Application money received for 12,000 8% Debentures at Rs 25 each)
	8% Debenture Application A/c	Dr.		3,00,000
	To 8% Debentures A/c				3,00,000
	(Debenture application money transferred to 8% Debentures account)
	8% Debentures Allotment A/c	Dr.		2,40,000
	Discount on Issue of Debentures A/c	Dr.		60,000
	To 8% Debentures A/c				3,00,000
	(Allotment money due on 12,000 8% Debentures at Rs 20 each at discount of Rs 5)
	Bank A/c	Dr.		2,40,000
	To 8% Debenture Allotment A/c				2,40,000
	(Allotment money received)
	8% Debenture First and Final Call A/c	Dr.		6,00,000
	To 8% Debentures A/c				6,00,000
	(First and final call money due on 12,000 8% Debentures at Rs 50 each)
	Bank A/c	Dr.		6,00,000
	To 8% Debentures First and Final Call A/c				6,00,000
	(First and Final call money received)