Page No 9.51:
Question 1:
Anand
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 did allotment was made . Call money was also
received on the due date.
Pass necessary Journal entries in the books of the company.
Answer:
Books of Anand Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
Bank
A/c |
Dr. |
|
50,000 |
|
|
To 9% Debenture
Application A/c |
|
|
50,000 |
|
|
(Debenture
application money received for 2,000 debentures at ` 25 each) |
|
|
|
|
|
|
|
|
|
|
|
9%
Debenture Application A/c |
Dr. |
|
50,000 |
|
|
To 9% Debenture A/c |
|
|
50,000 |
|
|
(Debenture
application money transferred to 9% Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
9%
Debenture Allotment A/c |
Dr. |
|
50,000 |
|
|
To 9% Debentures A/c |
|
|
50,000 |
|
|
(Debenture
allotment money due on 2,000 Debentures at ` 25
each) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
50,000 |
|
|
To 9% Debenture Allotment
A/c |
|
|
50,000 |
|
|
(Debenture
allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
9%
Debenture First and Final Call A/c |
Dr. |
|
1,00,000 |
|
|
To 9% Debentures A/c |
|
|
1,00,000 |
|
|
(Debenture
first and final call money due on 2,000 debentures at ` 50 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
1,00,000 |
|
|
To 9% Debenture First
and Final Call A/c |
|
|
1,00,000 |
|
|
(Debenture
first and final call received) |
|
|
|
Page No 9.51:
Question 2:
Mohit Ltd
. issued 2,000; 9% Debentures of ` 100 each on the following terms:
`20 on applications
;` 20 on allotment
; ` 30 on first call
; ` 30 on final call.
The public applied for 2,400 debentures. Applications for 1,800 debentures were
accepted in full. Applications for 400 debentures were allotted 200 debentures and applications for 200 debentures were rejected .
Pass necessary Journal entries .
Answer:
Books of Mohit Ltd. |
|||||
Journal |
|||||
Date |
Particular |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
Bank
A/c |
Dr. |
|
48,000 |
|
|
To 9% Debenture
Application A/c |
|
|
48,000 |
|
|
(Debenture
application money received for 2,400 debentures at ` 20 each) |
|
|
|
|
|
|
|
|
|
|
|
9%
Debenture Application A/c |
Dr. |
|
48,000 |
|
|
To 9% Debentures A/c |
|
|
40,000 |
|
|
To 9% Debentures
Allotment A/c |
|
|
4,000 |
|
|
To Bank A/c |
|
|
4,000 |
|
|
(Debenture
application money transferred to 9% Debenture account for 2,000 Debenture,
adjusted to Debenture Allotment account for 200 Debentures and money refunded
for 200 debentures) |
|
|
|
|
|
|
|
|
|
|
|
9%
Debenture Allotment A/c |
Dr. |
|
40,000 |
|
|
To 9% Debentures A/c |
|
|
40,000 |
|
|
(Debenture
allotment money due on 2,000 debentures at ` 20
each) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
36,000 |
|
|
To 9% Debentures
Allotment A/c |
|
|
36,000 |
|
|
(Debenture
allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture
First Call A/c |
Dr. |
|
60,000 |
|
|
To 9% Debentures A/c |
|
|
60,000 |
|
|
(Debenture
first call money due on 2,000 9% debenture at ` 30
each) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
60,000 |
|
|
To Debenture First Call
A/c |
|
|
60,000 |
|
|
(Debenture
first call money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture
Final Call A/c |
Dr. |
|
60,000 |
|
|
To 9% Debentures A/c |
|
|
60,000 |
|
|
(Debentures
final call money due on 2,000 9% Debentures at ` 30
each) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
60,000 |
|
|
To Debenture Final Call
A/c |
|
|
60,000 |
|
|
(Debenture
final call received on 2,000 9% Debenture at ` 30
each) |
|
|
|
|
|
|
|
|
|
Page No 9.51:
Question 3:
Venus
Ltd. issued 40,000; 10% Debentures of `
100 each at par for cash payable in full along with the application.
Applications were received for 60,000 debentures
. Debentures were allotted and excess application money was refunded. Pass
Journal entries in the books of the company.
Answer:
Journal |
|||||
Date |
ABCParticulars |
L.F. |
Debit Amount (`) |
Credit Amount (`) |
|
|
Bank A/c (60,000 ×100) |
Dr. |
|
60,00,000 |
|
|
To Debenture Application and
Allotment A/c |
|
|
|
60,00,000 |
|
(Received application money on
60,000 Debenture) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application and Allotment
A/c |
Dr. |
|
60,00,000 |
|
|
To 10% Debentures A/c
(40,000 ×100) |
|
|
|
40,00,000 |
|
To Bank A/c |
|
|
|
20,00,000 |
|
(Application money transferred to
Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
Page No 9.52:
Question 4:
Narain Laxmi Ltd. invited applications for issuing 7,500; 12%
Debentures of ` 100 each at a premium of ` 35 per debenture . The full
amount was payable on application. Applications were received for 10,000
Debentures. Allotment was made to all the applications on pro rata.
Pass necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd.
Answer:
In the Books of
Narain Laxmi Ltd. Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
||
|
Bank A/c (10,000 debentures × 135) |
Dr. |
|
13,50,000 |
|
|
|
To
Debenture Application and Allotment A/c |
|
|
|
13,50,000 |
|
|
(Application money received on 10,000 12% debenture) |
|
|
|
||
|
|
|
|
|
||
|
Debenture
Application and Allotment A/c |
Dr. |
|
13,50,000 |
|
|
|
To
12% Debentures A/c |
|
|
|
7,50,000 |
|
|
To
Securities Premium Reserve A/c |
|
|
|
2,62,500 |
|
|
To
Bank A/c |
|
|
|
3,37,500 |
|
|
(7,500; 12% Debentures of ` 100 each issued at a premium of ` 35 and excess money refunded) |
|
|
|
||
|
|
|
|
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|
Page No
9.52:
Question 5:
Raj Ltd . issued 5,000; 8%
Debentures of ` 100 each at a premium of 5% payable as follows:
` 10 on application ; ` 20 along with premium on allotment and balance on
first and final call.
Pass necessary Journal entries.
Answer:
Books of Raj Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
Bank
A/c |
Dr. |
|
50,000 |
|
|
To 8% Debenture
Application A/c |
|
|
50,000 |
|
|
(Debenture
application money received for 5,000 debentures at ` 10 each) |
|
|
|
|
|
|
|
|
|
|
|
8%
Debenture Application A/c |
Dr. |
|
50,000 |
|
|
To 8% Debentures A/c |
|
|
50,000 |
|
|
(Debenture
application money transferred to 8% Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
8%
Debenture Allotment A/c |
Dr. |
|
1,00,000 |
|
|
To 8% Debentures A/c |
|
|
75,000 |
|
|
To Securities Premium
A/c |
|
|
25,000 |
|
|
(Debenture
allotment due on 5,000 8% Debentures at ` 20
including premium of ` 5) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
1,00,000 |
|
|
To 8% Debentures
Allotment A/c |
|
|
1,00,000 |
|
|
(Debenture
allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
8%
Debentures First and Final Call A/c |
Dr. |
|
3,75,000 |
|
|
To 8% Debenture A/c |
|
|
3,75,000 |
|
|
(Debenture
first and final call due on 5,000 Debentures at ` 75 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
3,75,000 |
|
|
To 8% Debenture First
and Final Call A/c |
|
|
3,75,000 |
|
|
(Debenture
first and final call received) |
|
|
|
|
|
|
|
|
|