Question

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.

Answer 1

Books of X. Ltd.

Journal

Date	Particulars				L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c			Dr.		2,70,000
		To 14% Debenture Application A/c					2,70,000
	(14% Debenture application money for 13,500 debentures @ 20 each received)
	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					10,000
	(14% Debenture Application money of 10,000 @ Rs 20 each transferred to 14% Debentures Account and 500 debentures were rejected and returned and rest of the amount adjusted on allotment)
	14% Debenture Allotment A/c			Dr.		6,00,000
		To 14% Debenture A/c					6,00,000
	(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
	(14% Debenture Allotment money received)
	14% Debenture First and Final Call A/c			Dr.		2,00,000
		To 14% Debenture A/c					2,00,000
	(14% Debenture First and Final Call money due on 10,000 debentures @ 20 each)
	Bank A/c			Dr.		2,00,000
		To 14% Debenture First and Final Call A/c					2,00,000
	(14% Debenture First and Final Call money received on 10,000 debentures @ Rs 20 each)