Y.Ltd. issued 2,000, 6% Debentures of Rs 100 each payable as follows Rs 25 on application; Rs 50 on allotment and Rs 25 on First and Final call.
Answers
Given : Y.Ltd. issued 2,000, 6% Debentures of Rs 100 each payable as follows Rs 25 on application; Rs 50 on allotment and Rs 25 on First and Final call.
Concept :
DEBENTURE :
- Debenture is a written acknowledgement of debt taken by the company.
- Debentures can be issued with /without charge on the assets.
- Debentures can be converted into equity shares.
- The debentures can be redeemed in lump sum or in installments.
- Debentures are shown under the head Non current liabilities and subhead long term borrowings.
CALLS :
When the whole amount on shares is not paid on application and allotment, the unpaid amount may be called by directors in one or more installments after allotment. Such installments are known as calls.
For Y.Ltd. to record the above the journal entries are in the attachment below :
Hope this answer will help you..
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Ajanta Company Limited having a normal capital of Rs 3,00,000, divided into shares of Rs 10 each offered for public subscription of 20,000 shares payable at Rs 2 on application; Rs 3 on allotment and the balance in two calls of Rs 2.50 each. Applications were received by the company for 24,000 shares. Applications for 20,000 shares were accepted in full and the shares allotted. Applications for the remaining shares were rejected and the application money was refunded…………...
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Alfa Limited invited applications for 4,00,000 of its equity shares of Rs 10 each on the following terms : Payable on application Rs 5 per share Payable on allotment Rs 3 per share Payable on first and final call Rs 2 per share Applications for 5,00,000 shares were received. It was decided : (a) to refuse allotment to the applicants for 20,000 shares; (b) to allot in full to applicants for 80,000 shares; (c) to allot the balance ……..
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