Question

Narain Laxmi Ltd. invited applications for issuing 7,500; 12% Debentures of ₹ 100 each at a premium of ₹ 35 per debenture. The full amount was payable on application. Applications were received for 10,000 Debentures. Allotment was made to all the applications on pro rata.
Pass necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd.

Answer 1

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

Explanation:

Given,

Narain Laxmi Ltd. invited applications for issuing 7,500;

12% Debentures of ₹ 100 each at a premium of ₹ 35 per debenture.

The full amount was payable on application.

Applications were received for 10,000 Debentures.

Allotment was made to all the applications on pro rata.

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