Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Sangam Ltd. issued 2,000; 9% Debentures of ₹100 each, on the following terms: ₹20 on application, ₹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 the necessary Journal entries.
JOURNAL (Books of Sangam Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 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% Debenture Allotment A/c | 4,000 | |||
| To Bank A/c | 4,000 | |||
| (Application money transferred to 9% Debentures Account for 2,000 debentures, adjusted against Debenture Allotment for 200 debentures, and refunded for 200 rejected 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% Debenture Allotment A/c | 36,000 | |||
| (Debenture allotment money received) | ||||
| 9% Debenture First Call A/c Dr. | 60,000 | |||
| To 9% Debentures A/c | 60,000 | |||
| (Debenture first call money due on 2,000 debentures at ₹30 each) | ||||
| Bank A/c Dr. | 60,000 | |||
| To 9% Debenture First Call A/c | 60,000 | |||
| (Debenture first call money received) | ||||
| 9% Debenture Final Call A/c Dr. | 60,000 | |||
| To 9% Debentures A/c | 60,000 | |||
| (Debenture final call money due on 2,000 debentures at ₹30 each) | ||||
| Bank A/c Dr. | 60,000 | |||
| To 9% Debenture Final Call A/c | 60,000 | |||
| (Debenture final call 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.3 - 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.3 - Issue of Debentures" instantly.