Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
The Decor Ltd. issued 20,000, 6% Debentures of ₹100 each at a 10% discount, payable ₹30 on application, ₹40 (after discount) on allotment, and the balance as first and final call. The debentures were subscribed and allotment was made. The amount due on allotment was received. The first and final call is yet to be made. You are required to pass the necessary Journal entries.
JOURNAL (Books of Decor Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 6,00,000 | |||
| To 6% Debenture Application A/c | 6,00,000 | |||
| (Debenture application money received for 20,000 debentures at ₹30 each) | ||||
| 6% Debenture Application A/c Dr. | 6,00,000 | |||
| To 6% Debentures A/c | 6,00,000 | |||
| (Debenture application money transferred to 6% Debentures Account) | ||||
| 6% Debenture Allotment A/c Dr. | 8,00,000 | |||
| Discount on Issue of Debentures A/c Dr. | 2,00,000 | |||
| To 6% Debentures A/c | 10,00,000 | |||
| (Debenture allotment money due on 20,000 debentures at ₹40 each, after ₹10 discount) | ||||
| Bank A/c Dr. | 8,00,000 | |||
| To 6% Debenture Allotment A/c | 8,00,000 | |||
| (Debenture allotment money received) |
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.14 - 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.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Vol 2 Chapter 2 Q.14 - Issue of Debentures" instantly.