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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Narain Laxmi Ltd. invited applications for issuing 7,500; 12% Debentures of ₹100 each at a premium of ₹35 per debenture. The full amount was payable on application. Applications were received for 10,000 debentures. Allotment was made to all the applicants on a pro-rata basis. Pass the necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd.
JOURNAL (Books of Narain Laxmi Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c (10,000 × ₹135) Dr. | 13,50,000 | |||
| To Debenture Application and Allotment A/c | 13,50,000 | |||
| (Application money received on 10,000; 12% debentures) | ||||
| Debenture Application and Allotment A/c Dr. | 13,50,000 | |||
| To 12% Debentures A/c (7,500 × ₹100) | 7,50,000 | |||
| To Securities Premium Reserve A/c (7,500 × ₹35) | 2,62,500 | |||
| To Bank A/c | 3,37,500 | |||
| (7,500; 12% Debentures of ₹100 each issued at a premium of ₹35, and the excess application money refunded) |
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.5 - 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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