Question

Vijay Laxmi Ltd. invited applications for 10,000; 12% Debentures of ₹ 100 each at a premium of ₹ 70 per debenture. The full amount was payable on application.
Applications were received for 13,500 debentures. Applications for 3,500 debentures were rejected and application money was refunded. Debentures were allotted to the remaining applications.

Answer 1

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

Explanation:

Given,

Vijay Laxmi Ltd. invited applications for 10,000;

12% Debentures of ₹ 100 each at a premium of ₹ 70 per debenture.

The full amount was payable on application.

Applications were received for 13,500 debentures.

Applications for 3,500 debentures were rejected and application money was refunded.

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