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Journal Entries in the books of Narain Luxmi Ltd.
Bank A/c Dr 1350000
To Debenture Application and Allotment A/c 1350000
( Money for 10000 12% Debentures received @ Rs 100 with a Premium of Rs 35 per Debenture)
Debenture Application and Allotment A/c Debit 1350000
To Debenture A/c 750000
To Security Premium A/c 262500
To Bank A/c 337500
(Debenture application money transferred to Debenture A/c and refunded excess Amount on 2500 Debentures)
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