Question

Vishwas Ltd. issued 2,000; 9% Debentures of ₹ 100 each payable as follows:
₹ 25 on application; ₹ 25 on allotment and ₹ 50 on first and final call.
Applications were received for all the debentures along with the application money did allotment was made . Call money was also received on the due date.
Pass necessary Journal entries in the books of the company.

Answer 1

Books of Vishwas Ltd.
Journal

Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		50,000
	To 9% Debenture Application A/c				50,000
	(Debenture application money received for 2,000 debentures at Rs 25 each)
	9% Debenture Application A/c	Dr.		50,000
	To 9% Debenture A/c				50,000
	(Debenture application money transferred to 9% Debentures A/c)
	9% Debenture Allotment A/c	Dr.		50,000
	To 9% Debentures A/c				50,000
	(Debenture allotment money due on 2,000 Debentures at Rs 25 each)
	Bank A/c	Dr.		50,000
	To 9% Debenture Allotment A/c				50,000
	(Debenture allotment money received)
	9% Debenture First and Final Call A/c	Dr.		1,00,000
	To 9% Debentures A/c				1,00,000
	(Debenture first and final call money due on 2,000 debentures at Rs 50 each)
	Bank A/c	Dr.		1,00,000
	To 9% Debenture First and Final Call A/c				1,00,000
	(Debenture first and final call received)