Question

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.

Answer 1

Books of A Ltd.

Date	Particulars				L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c			Dr.		96,000
		To 9% Debenture Application A/c					96,000
	(9% Debenture Application money received on 4,800 Debentures @ 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
	(9% Debenture Application money of 4000 debentures transferred to Debentures Account, 400 debentures rejected returned and remaining amount adjusted on allotment)
	9% Debenture Allotment A/c			Dr.		80,000
		To 9% Debenture A/c					80,000
	(9% Debenture Allotment due on  4,000 Debentures @ Rs 20 each)
	Bank A/c			Dr.		72,000
		To 9% Debenture Allotment A/c					72,000
	(9% Debenture Allotment money received)
	9% Debenture First Call A/c			Dr.		1,20,000
		To 9% Debenture A/c					1,20,000
	(9% Debenture First Call due on 4000 debentures @ Rs 30 each)
	Bank A/c			Dr.		1,20,000
		To Debenture First Call A/c					1,20,000
	(9% Debenture first call received for 4000 debentures @ Rs 30 each)
	9% Debenture Final Call A/c			Dr.		1,20,000
		To 9% Debenture A/c					1,20,000
	(9% Debenture Final Call due on 4000 debentures @ Rs 30 each )
	Bank A/c			Dr.		1,20,000
		To 9% Debenture Final Call A/c					1,20,000
	(9% Debenture Final Call received on 4000 debentures @ Rs 30 each)