Question

Fill-in-the-blanks in the following case:

In the Books of M Ltd. JOURNAL
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
	?   ...Dr.		?
	To ?			?
	(Application money received for issuing 4,000, 10% Debentures of ₹ 100 each at a premium of 10% and redeemable at a premium of 5%)
	?   ...Dr.		?
	?   ...Dr.		?
	To ?			?
	To ?			?
	To ?			?
	(?)

Answer 1

In the Books of M Ltd. JOURNAL
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
	Bank A/c   ...Dr.		4,40,000
	To Debentures Application and Allotment A/c			4,40,000
	(Application money received for issuing 4,000, 10% Debentures of ₹ 100 each at a premium of 10% and redeemable at a premium of 5%)
	Debentures Application and Allotment A/c   ...Dr.		4,40,000
	Loss on Issue of Debentures A/c   ...Dr.		20,000
	To 10% Debentures A/c			4,00,000
	To Securities Premium A/c			40,000
	To Premium on Redemption of Debentures A/c			20,000
	(Issue of ₹ 4,00,000, 10% Debentures of ₹ 100 each issued at a premium of 10% and redeemable at a premium of 5%)