Question

ABC Ltd. issued 40,000; 10% Debentures of ₹ 100 each at par for cash payable in full along with the application. Applications were received for 60,000 debentures. Debentures were allotted and excess application money was refunded. Pass Journal entries in the books of the company.

Answer 1

The necessary Journal entries in the books of the company are calculated and prepared below:

Explanation:

Given,

ABC Ltd. issued 40,000;

10% Debentures of ₹ 100 each at par for cash payable in full along with the application.

Applications were received for 60,000 debentures.

Debentures were allotted and excess application money was refunded.

The necessary Journal entries in the books of the company are calculated and prepared below: