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When are the additional journal entries required if debenture money is received in more than two installments? |
On receipt of application money On the receipt of the first call On allotment of debentures No entry is required |
On the receipt of the first call |
The correct answer is option 2- On the receipt of the first call. Additional journal entries are required when debenture money is received in more than two installments to account for the subsequent calls on debentures. These calls represent payments made by debentureholders to fulfill their obligation to pay for the debentures they have subscribed to. |
