Question 13 Chapter 9 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 13 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 13 Chapter 9 of +2-Part-1

13. (Oversubscription/ Pro-rata allotment) Narendra Ltd. issued 1,000 debentures of each at a discount of 10%. The amount was payable as follows:

₹ 25 on application
₹ 35 on allotment
₹ 30 on First & final call.

In all applications for 1,200 debentures were received. Applications for 600 debenture accepted in full. One applicant who had applied for 500 debentures was allotted debentures and rest of the applications were rejected. All the amounts due were received time. Give journal entries in the books of company.

The solution of Question 13 Chapter 9 of +2 Part-1: –

Journal
Date   Particulars
L.F. Debit Credit ₹
  Bank A/c Dr.   30,000  
  To Debenture Application A/c       30,000
  (Being app. Money received 2 Rs. 25 on 1,200 debenture )      
         
  Debenture Application A/c Dr.   27,500  
  To Debenture A/c     25,000
  To Bank A/c     2,500
  (Being transfer of app. Money on 1,000 debentures & refund of amount on 100 debentures )      
         
  Debenture Allotment A/c Dr.   35,000  
  Discount on issue of Debenture A/c Dr.   10,000  
  To Debentures A/c     45,000
  (Being allotment & discount issued credited to debentures A/c)      
         
  Bank A/c Dr.   32,500  
  Debenture Application A/c Dr.   2,500  
  To Debenture Allotment A/c       35,000
  (Being allotment money received & surplus application money on debentures credited to allotment A/c )        
           
  Debenture First & Final Call A/c Dr.   30,000  
  To 9% Debenture A/c       30,000
  (Being first & final call money due )        
           
  Bank A/c Dr.   30,000  
  To Debenture first & final call A/c       30,000
  (Being first & final call money received )        
           

It all about Question 13 Chapter 9 of +2-Part-1, If you have any problem please comment below.

Issue of Debentures from the point of view of Redemption

You can also Check out the solved question of other Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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