X.Ltd. Invites Application For The Issue Of 10,000, 14% Debentures Of Rs 100 Each Payable-Accountancy

X.Ltd. invites application for the issue of 10,000, 14% debentures of Rs 100 each payable as to Rs 20 on application, Rs 60 on allotment and the balance on call. The company receives applications for 13,500 debentures, out of which applications for 8,000 debentures are allotted in full, 5,000 only 40% and the remaining rejected. The surplus money on partially allotted applications is utilised towards allotment. All the sums due are duly received.

Books of X.Ltd.

Journal

Date	Particulars		L.F.	Amount (Dr.)	Amount (Cr.)
	Bank A/c	Dr.		2,70,000
	To 14% debenture Application A/c				2,70,000
	( Being 14%Debenture Application money received for 13,500 Debentures @ Rs 20 each )
	14% debenture Application A/c	Dr.		2,70,000
	To 14%Debenture A/c				2,00,000
	To 14%Debenture Allotment A/c				60,000
	To Bank A/c				10,000
	( Being 14% debenture application money transferred to 14% debenture A/c and 500 debentures rejected )
	14% Debenture Allotment A/c	Dr.		6,00,000
	To 8%Debenture A/c				6,00,000
	( Being 14% Debenture allotment money due on 10,000 debentures @ Rs 60 each )
	Bank A/c	Dr.		5,40,000
	To 14% Debenture Allotment A/c				5,40,000
	( Being 14% Debenture allotment money received on 10,000 debentures @ Rs 60 each )
	14% Debenture first and final call A/c	Dr.		2,00,000
	To 14%Debenture A/c				2,00,000
	( Being 14% Debenture first and final call money due on 10,000 debentures @ Rs 20 each )
	Bank A/c	Dr.		2,00,000
	To 14% Debenture first and final call A/c				2,00,000
	( Being 14% Debenture First and Final Call money received on 10,000 )

Chapter-2 Issue and Redemption of Debentures-II

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