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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Kati Ltd. issued 8,000, 9% Debentures of ₹100 each at a discount of 10%. The full amount was payable on application. Applications were received for 9,000 debentures, and allotment was made on a pro-rata basis. Pass the necessary Journal entries for the above transactions in the books of Kati Ltd. (CBSE 2020)
JOURNAL (Books of Kati Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 8,10,000 | |||
| To 9% Debenture Application and Allotment A/c | 8,10,000 | |||
| (Debenture application money received for 9,000 debentures at ₹90 each, being face value ₹100 at 10% discount) | ||||
| 9% Debenture Application and Allotment A/c Dr. | 8,10,000 | |||
| Discount on Issue of Debentures A/c Dr. | 80,000 | |||
| To 9% Debentures A/c | 8,00,000 | |||
| To Bank A/c | 90,000 | |||
| (Application money transferred to 9% Debentures Account for 8,000 debentures, and money refunded for the 1,000 debentures not allotted) |
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 "T.S. Grewal Class 12 Vol 2 Chapter 2 Q.11 - Issue of Debentures", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 2 - 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.
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