Question

431
A company issued 3,000, 5% debentures of 100 each payable * 20 on application;
30 on allotment and rest on first & final call. All the debenture money was
received except on 500 debentureholders who did not pay allotment and first call
money. Pass journal entries in the books of company
[Ans: Calls in Arrear-On Allotment 15.000​

Answer 1

Explanation:

Bank A/c Dr. 60,000

To 5% Debenture Application A/c 60,000

(Being 5% debentures money are received)

5% Debenture Application A/c Dr. 60,000

To 5% Debenture A/c. 60,000

(Being 5% debentures money are transferred)

5% Debenture Allotment A/c Dr. 75,000

Call in arrear Dr. 15,000

To 5% Debenture A/c 90,000

(Being 500 5%debentures are not pay the money of allotment)