Question

X Ltd. issued 5,000, 12% Debentures of ₹ 100 each at a premium of ₹ 5 payable as follows:

On Application	₹ 30  (including premium)
On Allotment	₹ 40
On 1st and Final Call	The balance amount

Applications were received for 6,000 debentures, and allotment was made pro rata to all applicants. All the moneys were duly received. Pass necessary journal entries.

Answer 1

Journal for X Ltd.
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Bank A/c   ...Dr.		1,80,000	-
	To 12% Debenture Application A/c		-	1,80,000
	(Application money received on 6,000 debentures @ ₹ 30.)
2.	12% Debenture Application A/c   ...Dr.		1,80,000	-
	To 12% Debentures A/c		-	1,25,000
	To Securities Premium Reserve A/c		-	25,000
	To 12% Debentures A/c		-	30,000
	(Application money was transferred for 5,000 debentures, including the premium and the excess money to allotment A/c)
3.	12% Debenture Allotment A/c   ...Dr.		2,00,000	-
	To 12% Debentures A/c		-	2,00,000
	(Allotment due on 5,000 debentures @ ₹ 40.)
4.	Bank A/c   ...Dr.		1,70,000	-
	To 12% Debenture Allotment A/c		-	1,70,000
	(Allotment money received in full.)
5.	12% Debenture First & Final Call A/c   ...Dr.		1,75,000	-
	To 12% Debentures A/c		-	1,75,000
	(First and final call due on 5,000 debentures @ ₹35 each)
6.	Bank A/c   ...Dr.		1,75,000	-
	To 12% Debenture First & Final Call A/c		-	1,75,000
	(Final call received.)