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Abc ltd. issued 1,00,000 , 10% debentures of rs.100 each payable as follows: on application rs. 30 and on allotment rs. 70 . the debentures ere fully subscribed and all money was duly received. as per terms of issue debentures are redeemable at rs. 110. records entries regarding issue of debentures.?
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Abc ltd. issued 1,00,000 , 10% debentures of rs.100 each payable as fo...
Entries regarding issue of debentures:
Explanation:
ABC Ltd. issued 1,00,000, 10% debentures of Rs. 100 each. The debentures were payable as follows: on application Rs. 30 and on allotment Rs. 70. The debentures were fully subscribed, and the company received all the money. As per the terms of the issue, the debentures are redeemable at Rs. 110.
The first entry is for the receipt of application money. The company received Rs. 30,00,000 as application money from the subscribers. The bank account is debited because the company received money, and the debenture application account is credited because the company owes the subscribers the debentures.
The second entry is for the allotment of debentures. The company allotted the debentures to the subscribers and received Rs. 21,00,000 as allotment money. The debenture application account is debited because the company is reducing its liability to the subscribers, and the bank account is credited because the company received money. The allotment to debenture account is credited because the company owes the subscribers the allotment money.
The third entry is for the receipt of allotment money. The company received Rs. 63,00,000 as allotment money from the subscribers. The bank account is debited because the company received money, and the allotment to debenture account is credited because the company is reducing its liability to the subscribers.
The fourth entry is for the issue of debentures. The company issued the debentures to the subscribers and received Rs. 1,10,00,000. The debenture account is debited because the company issued debentures, and the profit and loss account is credited because the company paid interest on the debentures. The securities premium account is credited because the company received an amount higher
- Journal entry for receipt of application money:
- Bank Account Dr. 30,00,000
- Debenture Application Account Cr. 30,00,000
- Journal entry for allotment of debentures:
- Debenture Application Account Dr. 30,00,000
- Bank Account Cr. 21,00,000
- Allotment to Debenture Account Cr. 9,00,000
- Journal entry for receipt of allotment money:
- Bank Account Dr. 63,00,000
- Allotment to Debenture Account Cr. 63,00,000
- Journal entry for issue of debentures:
- Debenture Account Dr. 1,10,00,000
- Profit and Loss Account Cr. 10,00,000
- Securities Premium Account Cr. 1,00,00,000
Explanation:
ABC Ltd. issued 1,00,000, 10% debentures of Rs. 100 each. The debentures were payable as follows: on application Rs. 30 and on allotment Rs. 70. The debentures were fully subscribed, and the company received all the money. As per the terms of the issue, the debentures are redeemable at Rs. 110.
The first entry is for the receipt of application money. The company received Rs. 30,00,000 as application money from the subscribers. The bank account is debited because the company received money, and the debenture application account is credited because the company owes the subscribers the debentures.
The second entry is for the allotment of debentures. The company allotted the debentures to the subscribers and received Rs. 21,00,000 as allotment money. The debenture application account is debited because the company is reducing its liability to the subscribers, and the bank account is credited because the company received money. The allotment to debenture account is credited because the company owes the subscribers the allotment money.
The third entry is for the receipt of allotment money. The company received Rs. 63,00,000 as allotment money from the subscribers. The bank account is debited because the company received money, and the allotment to debenture account is credited because the company is reducing its liability to the subscribers.
The fourth entry is for the issue of debentures. The company issued the debentures to the subscribers and received Rs. 1,10,00,000. The debenture account is debited because the company issued debentures, and the profit and loss account is credited because the company paid interest on the debentures. The securities premium account is credited because the company received an amount higher
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Abc ltd. issued 1,00,000 , 10% debentures of rs.100 each payable as follows: on application rs. 30 and on allotment rs. 70 . the debentures ere fully subscribed and all money was duly received. as per terms of issue debentures are redeemable at rs. 110. records entries regarding issue of debentures.?
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Abc ltd. issued 1,00,000 , 10% debentures of rs.100 each payable as follows: on application rs. 30 and on allotment rs. 70 . the debentures ere fully subscribed and all money was duly received. as per terms of issue debentures are redeemable at rs. 110. records entries regarding issue of debentures.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Abc ltd. issued 1,00,000 , 10% debentures of rs.100 each payable as follows: on application rs. 30 and on allotment rs. 70 . the debentures ere fully subscribed and all money was duly received. as per terms of issue debentures are redeemable at rs. 110. records entries regarding issue of debentures.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Abc ltd. issued 1,00,000 , 10% debentures of rs.100 each payable as follows: on application rs. 30 and on allotment rs. 70 . the debentures ere fully subscribed and all money was duly received. as per terms of issue debentures are redeemable at rs. 110. records entries regarding issue of debentures.?.
Abc ltd. issued 1,00,000 , 10% debentures of rs.100 each payable as follows: on application rs. 30 and on allotment rs. 70 . the debentures ere fully subscribed and all money was duly received. as per terms of issue debentures are redeemable at rs. 110. records entries regarding issue of debentures.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Abc ltd. issued 1,00,000 , 10% debentures of rs.100 each payable as follows: on application rs. 30 and on allotment rs. 70 . the debentures ere fully subscribed and all money was duly received. as per terms of issue debentures are redeemable at rs. 110. records entries regarding issue of debentures.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Abc ltd. issued 1,00,000 , 10% debentures of rs.100 each payable as follows: on application rs. 30 and on allotment rs. 70 . the debentures ere fully subscribed and all money was duly received. as per terms of issue debentures are redeemable at rs. 110. records entries regarding issue of debentures.?.
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Abc ltd. issued 1,00,000 , 10% debentures of rs.100 each payable as follows: on application rs. 30 and on allotment rs. 70 . the debentures ere fully subscribed and all money was duly received. as per terms of issue debentures are redeemable at rs. 110. records entries regarding issue of debentures.?, a detailed solution for Abc ltd. issued 1,00,000 , 10% debentures of rs.100 each payable as follows: on application rs. 30 and on allotment rs. 70 . the debentures ere fully subscribed and all money was duly received. as per terms of issue debentures are redeemable at rs. 110. records entries regarding issue of debentures.? has been provided alongside types of Abc ltd. issued 1,00,000 , 10% debentures of rs.100 each payable as follows: on application rs. 30 and on allotment rs. 70 . the debentures ere fully subscribed and all money was duly received. as per terms of issue debentures are redeemable at rs. 110. records entries regarding issue of debentures.? theory, EduRev gives you an
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