Mr. Rythem & Co. of Govind Nagar issued 10,000. 12% debentures of 50
each on 5% discount amount payable as follows: 10 on application, 25 on
allotment (with discount) and 15 on 1st and final call. All amounts were received
on application. Pass necessary journal entries
Ans: Total of Journal 13,50,000)
Answers
Explanation:
Applications were received for all the debentures along with the application money did allotment was made . Call money was also received on the due date.
Pass necessary Journal entries in the books of the company.
ANSWER:
Books of Vishwas Ltd.
Journal
Date
Particulars
L.F.
Debit Amount
Rs
Credit Amount
Rs
Bank A/c
Dr.
50,000
To 9% Debenture Application A/c
50,000
(Debenture application money received for 2,000 debentures at Rs 25 each)
9% Debenture Application A/c
Dr.
50,000
To 9% Debenture A/c
50,000
(Debenture application money transferred to 9% Debentures A/c)
9% Debenture Allotment A/c
Dr.
50,000
To 9% Debentures A/c
50,000
(Debenture allotment money due on 2,000 Debentures at Rs 25 each)
Bank A/c
Dr.
50,000
To 9% Debenture Allotment A/c
50,000
(Debenture allotment money received)
9% Debenture First and Final Call A/c
Dr.
1,00,000
To 9% Debentures A/c
1,00,000
(Debenture first and final call money due on 2,000 debentures at Rs 50 each)
Bank A/c
Dr.
1,00,000
To 9% Debenture First and Final Call A/c
1,00,000
(Debenture first and final call received)
Explanation:
journal entries
date particular lf amount dr. amount cr.
bank a/C dr.
to debenture application a/C