# X Ltd . Issued 12,000; 8% Debentures of ​₹ 100 Each at a Discount of 5% Payable as 25% on Application; - Accountancy

Journal Entry

X Ltd . issued 12,000; 8% Debentures of ​₹  100 each at a discount of 5% payable as 25% on application;20% on allotment and balance after three months.
Pass Journal entries.

#### Solution

Face Value of Debenture = Rs 100

Discount (Rs 100 × 5%) = Rs 5

∴ Issue Price = Rs 95

Amount Payable as:

 On Application (25%) Rs 25 per debenture On Allotment (20%) Rs 20 (25 – 5) per debenture On First and Final Call (50%) Rs 50 per debenture

Journal

 Date Particulars L.F. Debit Amount Rs Credit Amount Rs Bank A/c Dr. 3,00,000 To 8% Debenture Application A/c 3,00,000 (Application money received for 12,000 8% Debentures at Rs 25 each) 8% Debenture Application A/c Dr. 3,00,000 To 8% Debentures A/c 3,00,000 (Debenture application money transferred to 8% Debentures account) 8% Debentures Allotment A/c Dr. 2,40,000 Discount on Issue of Debentures A/c Dr. 60,000 To 8% Debentures A/c 3,00,000 (Allotment money due on 12,000 8% Debentures at Rs 20 each at discount of Rs 5) Bank A/c Dr. 2,40,000 To 8% Debenture Allotment A/c 2,40,000 (Allotment money received) 8% Debenture First and Final Call A/c Dr. 6,00,000 To 8% Debentures A/c 6,00,000 (First and final call money due on 12,000 8% Debentures at Rs 50 each) Bank A/c Dr. 6,00,000 To 8% Debentures First and Final Call A/c 6,00,000 (First and Final call money received)
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#### APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 2
Chapter 2 Issue of Debentures
Exercise | Q 10 | Page 52