A. Ltd. Issued 4,000, 9% Debentures of Rs 100 Each On the Following Terms

5. A. Ltd. issued 4,000, 9% Debentures of Rs 100 each on the following terms:

Rs 20 on Application;

Rs 20 on Allotment;

Rs 30 on First call; and

Rs 30 on Final call.

The public applied for 4,800 Debentures. Applications for 3,600 Debentures were accepted in full. Applications for 800 Debentures were allotted 400 Debentures and applications for 400 Debentures were rejected.

Books of A.Ltd.

Journal

Date	Particulars		L.F	Amount (Dr.)	Amount (Cr.)
	Bank A/c	Dr.		96,000
	To 9% debenture application A/c				96,000
	( Being application money received on 4,800 debentures @ Rs 20 each )
	9% debenture application A/c	Dr.		96,000
	To 9% debenture A/c				80,000
	To 9% debenture Allotment A/c				8,000
	To Bank A/c				8,000
	( Being 9% debenture application money for 4,000 debentures transferred to debenture capital A/c 400 debentures adjusted to debenture allotment A/c and reaming 400 debentures were rejected )
	9% debenture Allotment A/c	Dr.		80,000
	To 9% debenture A/c				80,000
	( Being 9% debenture allotment due on 4,000 debentures @ Rs 20 )
	Bank A/c	Dr.		72,000
	To 9% debenture Allotment A/c				72,000
	( Being 9% debenture allotment money received )
	9% debenture first call A/c	Dr.		1,20,000
	To 9% debenture A/c				1,20,000
	( Being 9% debenture first call money due on 4,000 debentures @ Rs 30 )
	Bank A/c	Dr.		1,20,000
	To 9% debenture A/c				1,20,000
	( Being 9% debenture first call money received )
	9% debenture final call A/c	Dr.		1,20,000
	To 9% debenture A/c				1,20,000
	( Being 9% debenture final call due on 4,000 debentures @ Rs 30 each )
	Bank A/c	Dr.		1,20,000
	To 9% debenture final call A/c				1,20,000
	( Being 9% debenture final call money received for 4,000 debentures @ Rs 30 each )

Chapter-2 Issue and Redemption of Debentures-II

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