Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Raja Products Ltd. issued 5,000; 9% Debentures of ₹100 each at a premium of ₹40, payable as follows: (i) ₹40, including premium of ₹10, on application; (ii) ₹45, including premium of ₹15, on allotment; and (iii) the balance as first and final call. The issue was subscribed and allotment made. Calls were made and the due amount was received. Pass Journal entries.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c (5,000 × ₹40) Dr. | 2,00,000 | |||
| To Debenture Application A/c | 2,00,000 | |||
| (Application money received) | ||||
| Debenture Application A/c Dr. | 2,00,000 | |||
| To 9% Debentures A/c (5,000 × ₹30) | 1,50,000 | |||
| To Securities Premium Reserve A/c (5,000 × ₹10) | 50,000 | |||
| (Application money adjusted) | ||||
| Debenture Allotment A/c (5,000 × ₹45) Dr. | 2,25,000 | |||
| To 9% Debentures A/c (5,000 × ₹30) | 1,50,000 | |||
| To Securities Premium Reserve A/c (5,000 × ₹15) | 75,000 | |||
| (Allotment money due) | ||||
| Bank A/c (5,000 × ₹45) Dr. | 2,25,000 | |||
| To Debenture Allotment A/c | 2,25,000 | |||
| (Allotment money received) | ||||
| Debenture First and Final Call A/c (5,000 × ₹55) Dr. | 2,75,000 | |||
| To 9% Debentures A/c (5,000 × ₹40) | 2,00,000 | |||
| To Securities Premium Reserve A/c (5,000 × ₹15) | 75,000 | |||
| (First and final call money due) | ||||
| Bank A/c Dr. | 2,75,000 | |||
| To Debenture First and Final Call A/c | 2,75,000 | |||
| (First and 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.9 - 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.9 - Issue of Debentures" instantly.