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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
GT Ltd. issued 5,000; 8% Debentures of ₹100 each at a premium of 5%, payable as follows: ₹10 on application, ₹20 (along with premium) on allotment, and the balance on the first and final call. Pass the necessary Journal entries.
JOURNAL (Books of GT Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 50,000 | |||
| To 8% Debenture Application A/c | 50,000 | |||
| (Debenture application money received for 5,000 debentures at ₹10 each) | ||||
| 8% Debenture Application A/c Dr. | 50,000 | |||
| To 8% Debentures A/c | 50,000 | |||
| (Debenture application money transferred to 8% Debentures Account) | ||||
| 8% Debenture Allotment A/c Dr. | 1,00,000 | |||
| To 8% Debentures A/c | 75,000 | |||
| To Securities Premium Reserve A/c | 25,000 | |||
| (Debenture allotment due on 5,000 debentures at ₹20 each, including premium of ₹5) | ||||
| Bank A/c Dr. | 1,00,000 | |||
| To 8% Debenture Allotment A/c | 1,00,000 | |||
| (Debenture allotment money received) | ||||
| 8% Debenture First and Final Call A/c Dr. | 3,75,000 | |||
| To 8% Debentures A/c | 3,75,000 | |||
| (Debenture first and final call due on 5,000 debentures at ₹75 each) | ||||
| Bank A/c Dr. | 3,75,000 | |||
| To 8% Debenture First and Final Call A/c | 3,75,000 | |||
| (Debenture first and final call 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.7 - 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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