Question

Mahakali Co. Ltd. Chandrapur issued 1,000, 12% debentures of  Rs.100 each, payable Rs. 20 on application and the balance on allotment. Applications were received for 1,500 debentures, out of which, applications for 900 were allotted fully, applications for 400 were allotted 100 debentures and remaining were rejected. All dues received.

Journalise the transactions and also show Balance Sheet.

Answer 1

                                                                                Journal

Date	Particulars		L.F.	DebitAmount(Rs)	CreditAmount(Rs)
	Bank A/c (1,500 × 20) To 12% Debenture Application A/c (Application money received)	Dr.		30,000	30,000
	Debenture Application A/c To 12% Debentures A/c (1,000 × 20) To Bank A/c (500 × 20)  (Application money transferred to 12% Debentures A/c)	Dr.		30,000	20,000 10,000
	Debenture Allotment A/c ( 900 × 80) To 12% Debentures A/c (Allotment money due)	Dr.		72,000	72,000
	Bank A/c To Debenture Allotment A/c (Allotment money received)	Dr.		72,000	72,000

Mahakali Co. Ltd.
Balance Sheet 

Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
Non-current liabilities
Long-term borrowings		102,000
II. Assets
Current assets
Cash and cash equivalents		102,000

Notes to Accounts :

Particulars	Amount (Rs)
1. Long-term borrowings 1,000, 12% Debentures of Rs 100 each	102,000
2. Cash and cash equivalents Cash at bank	102,000