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Mahakali Co. Ltd. Chandrapur Issued 1,000, 12% Debentures Of Rs.100 Each, Payable Rs. 20 on Application and the Balance on Allotment. - Book Keeping and Accountancy

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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.
Journal Entry
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Solution

                                                                                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
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2015-2016 (July)

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