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-Accountancy

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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

DateParticularsL.F
Amount
(Dr.)
Amount
(Cr.)
2014
June 30Bank A/cDr.6,00,00,000
  To 8% debenture Application A/c6,00,00,000
( Being 8%Debenture Application money received for 3,000 Debentures @ Rs 200 each )
8% debenture Application A/cDr.6,00,00,000
  To 8%Debenture A/c3,00,00,000
  To 8%Debenture Allotment A/c2,00,00,000
  To Securities Premium A/c1,00,00,000
( 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/cDr.7,00,00,000
  To 8%Debenture A/c7,00,00,000
( Being 8% Debenture allotment money due on 2,00,000 debentures @ Rs 350 )
Bank A/cDr.6,00,00,000
  To 8% Debenture Allotment A/c6,00,00,000
( Being 8% Debenture allotment money received on 2,00,000 debentures @ Rs 350 )

Chapter-2 Issue and Redemption of Debentures-II



Location: India

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