Question

Parley 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 and allotment was made. Call money was also received on the due date. Pass necessary Journal entries in the books of the company.

Answer 1

Journal Entries In the Books of Parley Ltd.
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
1.	Bank A/c   ...Dr.		50,000
	To Debentures Application A/c			50,000
	(Application money received on 2,000 debentures)
2.	Debentures Application A/c   ...Dr.		50,000
	To 9% Debentures A/c			50,000
	(Application money transferred to Debentures A/c)
3.	Debentures Allotment A/c   ...Dr.		50,000
	To 9% Debentures A/c			50,000
	(Allotment money due)
4.	Bank A/c   ...Dr.		50,000
	To Debentures Allotment A/c			50,000
	(Allotment money received)
5.	Debentures First and Final Call A/c   ...Dr.		1,00,000
	To 9% Debentures A/c			1,00,000
	(First and final call money due)
6.	Bank A/c   ...Dr.		1,00,000
	To Debentures First and Final Call A/c			1,00,000
	(First and final call money received)

Working note:

Application money:

2,000 × ₹ 25 = ₹ 50,000

Allotment money:

2,000 × ₹ 25 = ₹ 50,000

First and Final Call:

2,000 × ₹ 50 = ₹ 1,00,000