question_answer

X Ltd issued 10,000, 8% debentures of Rs. 10 each, payable on application and redeemable at par at any time after 6 years. Record the entries for the issue of debentures in the books of X Ltd.

Answer:

                                                            JOURNAL

Date	Particulars		LF	Amt (Dr)	Amt (Dr)
	Bank A/c \[(10,000\times 10)\]	Dr		1,00,000
	To Debenture Application and Allotment A/c				1,00,000
	(Being the application money received)
	Debenture Application and Allotment A/c	Dr		1,00,000
	To 8% Debentures A/c				1,00,000
	(Being the application money transferred to debentures A/c)