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Accountancy · 2025 · 4 marks
CBSE 2025 · Region 2 · Set 2 · Q21
Sargam Limited issued 2,000, 9% debentures of ₹ 500 each at a premium of 10%. The amount was payable as follows: On Application - ₹ 200 per debenture…
Sargam Limited issued $\displaystyle 2,000$, $\displaystyle 9$% debentures of ₹ $\displaystyle 500$ each at a premium of $\displaystyle 10$%. The amount was payable as follows : On Application - ₹ $\displaystyle 200$ per debenture On Allotment - Balance (including premium) The debentures were fully subscribed and all amounts were duly received. Pass the necessary journal entries for issue of debentures in the books of Sargam Limited.
Marking-scheme solution
Books of Sargam Limited
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. $\displaystyle 4,00,000$
To Debenture Application A/c $\displaystyle 4,00,000$
(Debenture application money received)
Debenture Application A/c Dr. $\displaystyle 4,00,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 4,00,000$
(Debenture application money transferred to
debentures)
Debenture Allotment A/c Dr. $\displaystyle 7,00,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 6,00,000$
To Securities Premium A/c $\displaystyle 1,00,000$
(Debenture allotment money due)
Bank A/c Dr. $\displaystyle 7,00,000$
To Debenture Allotment A/c $\displaystyle 7,00,000$
(Debenture allotment money received)
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