CBSE 2025, Set 2

Question

(b) Varsha Ltd. invited applications for issuing 2,000, 12% debentures of ₹100 each at a premium of ₹30 per debenture. Full amount was payable on application. Applications were received for 5,000 debentures. Applications for 3,000 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 Varsha Ltd.

Edvaya · Accepted Answer

The correct answer is Subjective. **Books of Varsha Ltd. - Journal** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | (i) | Bank A/c ...Dr.     To Debenture Application and Allotment A/c (Receipt of application money on 5,000 debentures @ 130) | | 6,50,000 | 6,50,000 | | (ii) | Debenture Application and Allotment A/c ...Dr.     To 12% Debentures A/c (2000 × 100)     To Securities Premium A/c (2000 × 30)     To Bank A/c (3000 × 130) (Transfer of application money and balance refunded) | | 6,50,000 | 2,00,000 60,000 3,90,000 |

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Accountancy > Accounting For Companies > Issue Of Debentures

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