Q. 42 DK Goel Issue of Debentures Solutions Class 12 CBSE (2024-25)

the solution of question number 42 of Issue of debentures chapter 7 of DK Goel Class 12 CBSE (2024-25)

X Ltd. raised a bank loan of ₹ 10,00,000 and issued by way of collateral security 10,000, 12% Debentures of ₹ 100 each. The Company further issued to public 15,000, 12% Debentures of ₹ 100 each at 2% discount payable ₹ 30 on application, ₹ 18 on allotment, ₹ 20 on first call and the balance a month later. The public applied for 20,000 debentures. Applications for 12,000 debentures were accepted in full, applications for 4,000 debentures were allotted 3,000 debentures and the remaining applications were rejected. All amounts were duly received. Prepare journal entries.

Hint: Discount on Issue of Debentures ₹ 30,000 will be written off from statement of Profit and Loss.

Solution:-