Question 4 Chapter 9 of Class 12 Part – 2 – 2024

Question 4 Chapter 9 of Class 12 Part – 2 – 2024

4. (Issue at Premium/Journal/Balance Sheet) Aurangabad Mills Ltd. Issued Rs. 5,00,000,6% Debentures of Rs. 500 each at a premium of 5%. The amount was payable as follows:
On application Rs. 100
On allotment Rs. 250(including premium)
On first call Rs. 175.
The company received applications for 1,020 debentures and allotment being made to the applicants of 1000 shares. Excess amount was refunded.
Give journal entries and show the balance sheet.

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Journal

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		1,02,000
	To Debenture Application A/c				1,02,000
	(Being app. Money received )
	Debenture Application A/c	Dr.		1,02,000
	To 6% Debenture A/c				1,00,000
	To Bank A/c				2,000
	(Being transfer of app. Money on 1,000 debentures & refund of amount on 20 app.)
	Debenture Allotment A/c	Dr.		2,50,000
	To 6% Debenture A/c				2,25,000
	To Securities Premium Reserve A/c				25,000
	(Being allotment amount transferred to debentures & premium A/c)
	Bank A/c	Dr.		2,50,000
	To Debenture Allotment A/c				2,50,000
	(Being allotment money received )
	Debenture First & Final Call A/c (1,000 X 175)	Dr.		1,75,000
	To 6% Debenture A/c				1,75,000
	(Being first & final call money due )
	Bank A/c	Dr.		1,75,000
	To Debenture first & final call A/c				1,75,000
	(Being first & final call money received )

Aurangabad Mills Ltd. Balance Sheet Schedule III (Part I)

Sr. No.	Particulars		Note No.	FIG. RELATING TO CURRENT REPORTNG PERIOD	FIG. RELATING TO PREVIOUS REPORTNG PERIOD
I	Equity & Liability
	Shareholders fund
	Reserve & Surplus		1	25,000
	Non current Liabilities		2	5,00,000
	Current Liabilities
	Total			5,25,000
II	Assets
	Non -Current Assets
	Current Assets
	Cash & Cash equivalent			5,25,000
	Total			5,25,000

Note 1:- Reserve & Surplus

Particulars		₹
Secruity Premium		25,000
Total		25,000

Note 2 :- Non – Current Liabilities

Particulars		₹
5 % Debentures
1,000 Debentures of ₹ 500 each		5,00,000
Total		5,00,000