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Question
Nav Lakshmi Ltd. Invited application for issuing 3,000, 12% Debentures of Rs 100 each at a premium of Rs 50 per Debentures. The full amount was payable on application.
Applications were received for 4,000 debentures. Application for 1,000 debentures were rejected and application money was refunded. Debentures were allotted to the remaining applicants.
Pass necessary Journal entries for the above transaction in the books of Nav Lakshmi Ltd
Solution
|
Books of Nav Lakshmi Ltd. |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
Bank A/c To Debenture Application A/c (Debenture application money received for 4,000 debenture )
Debenture Application A/c To 12% Debenture A/c To Securities Premium A/c (Debentures application 3,000 debentures transferred to 12% Debenture and Securities Premium)
Debentures Application A/c To Bank A/c (Debentures Application of 1,000 Debentures returned) |
Dr.
Dr.
Dr.
|
|
6,00,000
4,50,000
1,50,000 |
6,00,000
3,00,000 1,50,000
1,50,000 |
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