Advertisement Remove all ads

June 30, 2014 at a Premium of 10% Payable as Rs 200 on Application (Including Premium) and Balance on Allotment, Redeemable at Par After 8 Years - Accountancy

Numerical

T. Ltd. offered 2,00,000, 8% debenture of Rs 500 each on June 30, 2014 at a premium of 10% payable as Rs 200 on application (including premium) and balance on allotment, redeemable at par after 8 years. But application are received for 3,00,000 debentures and the allotment is made on pro-rata basis. All the money due on application and allotment is received. Record necessary entries regarding issue of debentures.

Advertisement Remove all ads

Solution

Books of T. Ltd.

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

2014          

Jun. 30

Bank A/c

Dr.

 

6,00,00,000

 

 

 

To 8% Debenture Application A/c

 

 

6,00,00,000

 

(8% Debenture application money received for 3,00,000

debentures @ ₹200 each)

 

 

 

Jun.30

8% Debenture Application A/c

Dr.

 

6,00,00,000

 

 

 

To 8% Debenture A/c

 

 

3,00,00,000

 

 

To 8% Debenture Allotment A/c

 

 

2,00,00,000

 

 

To Securities Premium A/c

 

 

1,00,00,000

 

(8% Debenture Application money of 2,00,000 debentures @

₹200 each including ₹50 premium transferred to Debenture Account and rest of the amount adjusted on allotment)

 

 

 

 

8% Debenture Allotment A/c

Dr.

 

7,00,00,000

 

 

 

To 8% Debenture A/c

 

 

7,00,00,000

 

(8% Debenture allotment on 2,00,000 debentures @

₹350 due)

 

 

 

 

Bank A/c

Dr.

 

5,00,00,000

 

 

 

To 8% Debenture Allotment A/c

 

 

5,00,00,000

 

(8% Debenture Allotment money received)

     
Concept: Interest on Debentures
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

NCERT Class 12 Accountancy - Company Accounts and Analysis of Financial Statements
Chapter 2 Issue and Redemption of Debentures
Numerical Questions | Q 6 | Page 136
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×