Q Ltd. invited applications for issuing 1,000, 9% debentures of Rs. 100 each at a discount of 6%. Applications of 1,200 debentures were received. Pro-rata allotment was made to all applicants. Pass necessary journal entries for the issue of debentures assuming that the whole amount was payable with applications.
Dear Student,
The journal entries are given below.
The journal entries are given below.
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 1,12,800 | |||
To Debenture Application and Allotment A/c | 1,12,800 | ||||
(Application money received from 1,200 9% Debentures of Rs 100 each issued at a discount of 6%) | |||||
Debenture Application and Allotment A/c | Dr. | 1,12,800 | |||
Discount on Issue of Debentures A/c | Dr. | 6,000 | |||
To 9% Debentures A/c | 1,00,000 | ||||
To Bank A/c | 18,800 | ||||
(Application money on 1,000 9% Debentures transferred to Debentures A/c and refunded to 200 Debentures) | |||||