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Accountancy · 2025 · 4 marks
CBSE 2025 · Region 2 · Set 3 · Q21
Swar Sangam Limited issued 3,000, 9% debentures of ₹ 500 each at a premium of 10%. The amount was payable as follows: On Application - ₹ 200 per…
Swar Sangam Limited issued $\displaystyle 3,000$, $\displaystyle 9$% 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 Swar Sangam Limited.
Marking-scheme solution
Books of Swar Sangam Limited
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. $\displaystyle 6,00,000$
To Debenture Application A/c $\displaystyle 6,00,000$
(Debenture application money received)
Debenture Application A/c Dr. $\displaystyle 6,00,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 6,00,000$
(Debenture application money transferred to debentures)
Debenture Allotment A/c Dr. $\displaystyle 10,50,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 9,00,000$
To Securities Premium A/c $\displaystyle 1,50,000$
(Debenture allotment money due)
Bank A/c Dr. $\displaystyle 10,50,000$
To Debenture Allotment A/c $\displaystyle 10,50,000$
(Debenture allotment money received)
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