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Question 13 Chapter 9 of +2-Part-1
13. (Oversubscription/ Pro-rata allotment) Narendra Ltd. issued 1,000 debentures of each at a discount of 10%. The amount was payable as follows:
| ₹ 25 | on application |
| ₹ 35 | on allotment |
| ₹ 30 | on First & final call. |
In all applications for 1,200 debentures were received. Applications for 600 debenture accepted in full. One applicant who had applied for 500 debentures was allotted debentures and rest of the applications were rejected. All the amounts due were received time. Give journal entries in the books of company.
Journal
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
|---|---|---|---|---|---|
| Bank A/c | Dr. | 30,000 | |||
| To Debenture Application A/c | 30,000 | ||||
| (Being app. Money received 2 Rs. 25 on 1,200 debenture ) | |||||
| Debenture Application A/c | Dr. | 27,500 | |||
| To Debenture A/c | 25,000 | ||||
| To Bank A/c | 2,500 | ||||
| (Being transfer of app. Money on 1,000 debentures & refund of amount on 100 debentures ) | |||||
| Debenture Allotment A/c | Dr. | 35,000 | |||
| Discount on issue of Debenture A/c | Dr. | 10,000 | |||
| To Debentures A/c | 45,000 | ||||
| (Being allotment & discount issued credited to debentures A/c) | |||||
| Bank A/c | Dr. | 32,500 | |||
| Debenture Application A/c | Dr. | 2,500 | |||
| To Debenture Allotment A/c | 35,000 | ||||
| (Being allotment money received & surplus application money on debentures credited to allotment A/c ) | |||||
| Debenture First & Final Call A/c | Dr. | 30,000 | |||
| To 9% Debenture A/c | 30,000 | ||||
| (Being first & final call money due ) | |||||
| Bank A/c | Dr. | 30,000 | |||
| To Debenture first & final call A/c | 30,000 | ||||
| (Being first & final call money received ) | |||||
It all about Question 13 Chapter 9 of +2-Part-1, If you have any problem please comment below.
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 13 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter No. 9 - Company Accounts (Issue of Debentures).
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Question 13 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1" instantly.
