question_answer

Goel Ltd invited applications for issuing 6,000, 12% debentures of Rs. 100 each at a premium of Rs. 50 per debenture. The full amount was payable on application. Applications were received for 8,000 debentures. Applications for 2,000 debentures. were rejected and application money was refunded. Debentures were allotted to the remaining applicants. Pass necessary journal entries for the above transactions in the books of Goel Ltd.

Answer:

JOURNAL

Date	Particulars		LF	Amt (Cr)	Amt (Cr)
	Bank A/c \[(8,000\times 150)\]	Dr		12,00,000
	To Debenture Application and Allotment A/c				12,00,000
	(Being application money received on 8,000 debentures)
	Debenture Application and allotment A/c	Dr		12,00,000
	To 12% Debentures A/c \[(6,000\times 100)\]				6,00,000
	To Securities Premium Reserve A/c \[(6,000\times 50)\]				3,00,000
	To Bank a/c \[(2,000\times 150)\]				3,00,000
	(Being application money transferred to 12% debentures account and excess money refunded)