Question

X Ltd. issued 2,000, 15% debentures of ₹ 100 each at Par, payable as follows: ₹ 25 on Application; ₹ 25 on Allotment and ₹ 50 on First and Final Call. 

Applications were received for 3,000 debentures. Applications for 1,600 debentures were accepted in full. Applications for 600 debentures were allotted 400 debentures and the rest were rejected. All moneys due were received.

Pass necessary journal entries.

Answer 1

Journal for X Ltd.
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Bank A/c   ...Dr.		75,000	-
	To 15% Debenture Application A/c		-	75,000
	(Application money received on 3,000 debentures @ ₹ 25.)
2.	15% Debenture Application A/c   ...Dr.		75,000	-
	To 15% Debentures A/c		-	50,000
	To 15% Debenture Allotment A/c		-	5,000
	To Bank A/c		-	20,000
	(Application money adjusted on 2,000 debentures and excess refunded.)
3.	15% Debenture Allotment A/c   ...Dr.		50,000	-
	To 15% Debentures A/c		-	50,000
	(Allotment money due on 2,000 debentures @ ₹ 25 each.)
4.	Bank A/c   ...Dr.		45,000	-
	To 15% Debenture Allotment A/c		-	45,000
	(Allotment money received in full.)
5.	15% Debenture First and Final Call A/c   ...Dr.		1,00,000	-
	To 15% Debentures A/c		-	1,00,000
	(First and Final Call due on 2,000 debentures @ ₹ 50 each.)
6.	Bank A/c   ...Dr.		1,00,000	-
	To 15% Debenture First and Final Call A/c		-	1,00,000
	(First and Final Call money received in full.)