A Ltd. issued 2,000; 9% Debentures of ₹ 100 each on the following terms:
₹ 20 on applications ; ₹ 20 on allotment ; ₹ 30 on first call ; ₹ 30 on final call.
The public applied for 2,400 debentures. Applications for 1,800 debentures were accepted in full. Applications for 400 debentures were allotted 200 debentures and applications for 200 debentures were rejected. Pass necessary Journal entries.
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The necessary Journal entries in the books of the company are calculated and prepared below:
Explanation:
Given,
A Ltd. issued 2,000; 9% Debentures of ₹ 100 each on the following terms:
₹ 20 on applications ;
₹ 20 on allotment ;
₹ 30 on first call ;
₹ 30 on final call.
The public applied for 2,400 debentures.
Applications for 1,800 debentures were accepted in full.
Applications for 400 debentures were allotted.
200 debentures and applications for 200 debentures were rejected.
The necessary Journal entries in the books of the company are calculated and prepared below:
