Question 1:
Kiosk
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 |
Particulars |
L.F. |
Debit (₹) |
Credit (₹) |
|
|
|
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) |
|
|
|
|
|
|
|
|
|
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Question 2:
Pariey
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 Pariey Ltd |
|||||
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
|
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) |
|
|
|
|
Question 3:
Sangam 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 Sangam Ltd |
|||||
|
Journal |
|||||
|
Date |
Particular |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
|
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) |
|
|
|
|
|
|
|
|
|
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|
Quesiton 4:
Super Seals Ltd. issued 10,000,
8% Debentures of ₹100 each at par for subscription payable ₹40 on
application, ₹30 on allotment and balance as first and final call.
Debentures issued were applied and allotment was made. First and Final Call is
yet to be made.
You are required to pass the necessary Journal entries.
Answer:
|
Books of Super Seals Ltd. |
|
|||||
|
Journal |
|
|||||
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
|
|
Bank
A/c |
Dr. |
|
4,00,000 |
|
|
|
|
To 6% Debenture
Application A/c |
|
|
4,00,000 |
|
|
|
|
(Debenture
application money received for 10,000 debentures at ₹ 40 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6%
Debenture Application A/c |
Dr. |
|
4,00,000 |
|
|
|
|
To 6% Debenture A/c |
|
|
4,00,000 |
|
|
|
|
(Debenture
application money transferred to 9% Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6%
Debenture Allotment A/c |
Dr. |
|
3,00,000 |
|
|
|
|
To 9% Debentures A/c |
|
|
3,00,000 |
|
|
|
|
(Debenture
allotment money due on 10,000 Debentures at ₹ 30 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
3,00,000 |
|
|
|
|
To 6% Debenture
Allotment A/c |
|
|
3,00,000 |
|
|
|
|
(Debenture
allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Question 5:
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 NarainLaxmi Ltd.
Answer:
|
In the Books of
NarainLaxmi Ltd. Journal |
|
|||||
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
||
|
|
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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|
|
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Ts Grewal Solution 2025-2026
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Class 12 / Volume – 2