a) Simmons Ltd. issued 1,00,000, 12% Debentures of Rs. 100 each at par payable in full on application
by 1st April, Application were received for 1,10,000 Debentures. Debentures were allotted on 7th
April. Excess money refunded on the same date.
You are required to pass necessary Journal Entries (including cash transactions) in the books of the
company.
Answers
Answered by
4
Answer:
For Issue of Debentures: <br> (i) Dr. Bank A/c and Cr. Debentures. Application and Allotment A/c by Rs. 1,20,000. <br> (ii) Dr. Debentures Application and Allotment A/c - Rs. 1,20,000, <br> Cr. 6% Debentures A/c - Rs. 1,00,000 and Securities Premium Reserve A/c - Rs. 20,000. <br> 2013,March 31: For Interest on Debentures: <br> (iii) Dr. Debentures' Interest A/c and Cr. Debentureholders' A/c by Rs.6,000. <br> (iv) Dr. Debentureholders'A/c and Cr. Bank A/c by Rs. 6,000. <br> (v) Dr. Statement of Profit and Loss and Cr. Debentures' Interest A/c byRs. 6,000.
Similar questions