Question

Kati Ltd. issued 8,000, 9% debentures of ₹ 100 each at a discount of 10%. The full amount
was payable on application. Applications were received for 9,000 debentures and allotment was
made on pro-rata basis. Pass the necessary journal entries for the above transactions in the
books of Kati Ltd.​

Answer 1

Answer:

Journal

Bank account. dr. 810000

To 9%debenture application

& allotment account. 810000

9%debenture application

& allotment account. dr 810000

discount on issue of

debenture account. dr. 80000

To 9% debenture a/c. 800000

To bank account. 90000