T. Ltd. offered 2,00,000, 8% debenture of Rs 500 each on June 30, 2014 at a premium of 10% payable as Rs 200 on application (including premium) and balance on allotment, redeemable at par after 8 years. But application are received for 3,00,000 debentures and the allotment is made on pro-rata basis. All the money due on application and allotment is received. Record necessary entries regarding issue of debentures.
Books of T. Ltd.
Journal
| Date | Particulars | L.F | Amount (Dr.) | Amount (Cr.) | |
| 2014 | |||||
| June 30 | Bank A/c | Dr. | 6,00,00,000 | ||
| To 8% debenture Application A/c | 6,00,00,000 | ||||
| ( Being 8%Debenture Application money received for 3,000 Debentures @ Rs 200 each ) | |||||
| 8% debenture Application A/c | Dr. | 6,00,00,000 | |||
| To 8%Debenture A/c | 3,00,00,000 | ||||
| To 8%Debenture Allotment A/c | 2,00,00,000 | ||||
| To Securities Premium A/c | 1,00,00,000 | ||||
| ( 8% debenture Application money along with premium for 2,000 shares @ Rs 200+premium (50) transferred to 8%Debenture Allotment A/c and reaming debentures application money adjusted to allotment A/c ) | |||||
| 8% Debenture Allotment A/c | Dr. | 7,00,00,000 | |||
| To 8%Debenture A/c | 7,00,00,000 | ||||
| ( Being 8% Debenture allotment money due on 2,00,000 debentures @ Rs 350 ) | |||||
| Bank A/c | Dr. | 6,00,00,000 | |||
| To 8% Debenture Allotment A/c | 6,00,00,000 | ||||
| ( Being 8% Debenture allotment money received on 2,00,000 debentures @ Rs 350 ) | |||||