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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Nikki Ltd. issued 10,000, 9% Debentures of ₹100 each at a premium of ₹20 per debenture. The issue price was payable as follows: ₹40 on application, ₹50 (including premium) on allotment, and the balance on the first and final call. It received ₹4,00,000 as application money. On allotment, the due amount was received. The first and final call is yet to be made. You are required to pass the necessary Journal entries.
JOURNAL (Books of Nikki Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 4,00,000 | |||
| To 9% Debenture Application A/c | 4,00,000 | |||
| (Debenture application money received for 10,000 debentures at ₹40 each) | ||||
| 9% Debenture Application A/c Dr. | 4,00,000 | |||
| To 9% Debentures A/c | 4,00,000 | |||
| (Debenture application money transferred to 9% Debentures Account) | ||||
| 9% Debenture Allotment A/c Dr. | 5,00,000 | |||
| To 9% Debentures A/c | 3,00,000 | |||
| To Securities Premium Reserve A/c | 2,00,000 | |||
| (Debenture allotment money due on 10,000 debentures at ₹50 each, including ₹20 premium) | ||||
| Bank A/c Dr. | 5,00,000 | |||
| To 9% Debenture Allotment A/c | 5,00,000 | |||
| (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.8 - 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.8 - Issue of Debentures" instantly.