Question

Surya Ltd. issued 2,500, 15% Debentures of 100 each at a discount of 10%
ILLUSTRATION 3.
payable as follows:
25 on application; 325 on allotment and the balance on First Call.
Applications were received for 2,000 debentures and the allotment was made. Al
the moneys were duly received. Directors decided to write off 1/5th of “Discount on
Issue of Debentures A/c” from Statement of Profit and Loss each year.
Pass journal entries (for first year only) and present the relevant information in the
Balance Sheet at the end of the first year.​

Answer 1

Explanation:

ILLUSTRATION 3.

payable as follows:

25 on application; 325 on allotment and the balance on First Call.

Applications were received for 2,000 debentures and the allotment was made. Al

the moneys were duly received. Directors decided to write off 1/5th of “Discount on

Issue of Debentures A/c” from Statement of Profit and Loss each year.

Pass journal entries (for first year only) and present the relevant information in the

Balance Sheet at the end of the first year.

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Answer 2

Explanation:

how to calculate first and final call