question_answer

Shiva Ltd. Issued 2,00,000 debentures of Rs. 20,00,000 at Rs. 3 premium, full amount called-up on application. 2,20,000 applications are received and debentures are allotted on pro-rata basis. Money overpaid on application is refunded. Pass journal entries.

Answer:

                                                                        JOURNAL

Date	Particulars		LF	Amt (Dr)	Amt (Cr)
	Bank A/c \[(2,20,000\times 13)\]	Dr		28,60,000
	To Debenture application and Allotment A/c				28,60,000
	(Being application money received)
	Debenture Application and Allotment A/c	Dr		28,60,000
	To Debentures A/c \[(2,00,000\times 10)\]				20,00,000
	To Securities Premium Reserve A/c \[(2,00,000\times 3)\]				6,00,000
	To Bank A/c \[(20,000\times 13)\]				2,60,000
	(Being application and allotment money transferred to Debenture account and securities premium reserve and excess refunded)