Well Done Ltd. issued - 3,50,000,12% Debentures of 100 each at par payable in full on application by 1st April, Application were received for…
CA Foundation · Accounting · RTP · September 2024
Well Done Ltd. issued - 3,50,000,12% Debentures of 100 each at par payable in full on application by 1st April, Application were received for 3,85,000 Debentures. Debentures were allotted on 7th April. Excess money refunded on the same date. You are required to prepare necessary Journal Entries (including cash transactions) in the books of the company .
Suggested Answer and Working Notes:
In the books of Well Done Limited Journal entries Date Particulars ₹ '₹ 000 ₹ '₹ 000 April, 1 Bank A/c Dr. 38,500 To 12% Debentures Application A/c 38,500 (Being money received on 3,85,000 debentures) April, 7 12% Debentures Application A/c Dr. 3,500 To Bank A/c 3,500 (Being money on 35,000 debentures refunded as per Board’s Resolution No…..dated…) April, 7 12% Debentures Application A/c Dr. 35,000 To 12% Debentures A/c 35,000 (Being the allotment of3,50,000 debentures of 100each at par, as per Board’s Resolution No….dated…)
Topics: Issue of Debentures
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