Garvit Ltd. invited applications for issuing 3,000, 11% Debentures of ` 100 each at a discount of 6%. The full amount was payable on application. Applications were received for 3,600 debentures. Applications for 600 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants. Pass the necessary journal entries for the above transactions in the books of Garvit Ltd.
Answers
Answer:yes
Explanation:will try
BANK account 360000₹
To debenture application 360000₹
Being debentures allotted and cash received
Debenture application account 360000₹
To 11% debenture account 360000₹
Being transferred to debenture account.
11% debenture account 60000
To bank account
Being money refunded for rejected 600debentures
Answer:
Journal of Garvit Ltd.
Particulars Dr. (₹) Cr. (₹)
Bank A/c Dr. 3,38,400
To Debenture Application and Allotment A/c 3,38,400
(Being application money received on 3,600
debentures)
Debenture Application and Allotment A/c Dr. 3,38,400
Discount/Loss on issue of Debentures A/c Dr. 18,000
To 11% Debentures 3,00,000
To Bank A/c 56,400
(Being application money adjusted)
Explanation: