Volume-2 | Chapter-2 | Question 1 to 5 | Issue of Debentures | Ts grewal solution 2020-21 | Class-12th

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)

 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)

 

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