Question

Swar Sangam Limited issued 3,000, 9% debentures of ₹ 500 each at a premium of 10%. The amount was payable as follows:

On Application - ₹ 200 per debenture

On Allotment - Balance (including premium)

The debentures were fully subscribed and all amounts were duly received.

Pass the necessary journal entries for issue of debentures in the books of Swar Sargam Limited.

Answer 1

In the Books of Swar Sangam Limited Journal
Date	Particulars	L.F.	Amount (₹)	Amount (₹)
	Bank A/с    ...Dr.		6,00,000	-
	To Debenture Application A/c		-	6,00,000
	(Being amount received on application)
	Debenture Application A/c    ...Dr.		6,00,000	-
	To 9% Debentures А/с		-	6,00,000
	(Being application money transferred to 9% Debentures Account)
	Debenture Allotment A/c     ...Dr.		10,50,000	-
	To 9% Debentures A/c		-	9,00,000
	To Securities Premium A/c		-	1,50,000
	(Being amount on allotment due)
	Bank A/c    ...Dr.		10,50,000	-
	To Debenture Allotment A/c		-	10,50,000
	(Being amount received on allotment)