A Limited issued 5000, 10% debentures of Rs. 100 each, at a premium of Rs. 10 per debenture payable as follows:
On application Rs. 25, On allotment Rs. 45 (including premium), On first and final call Rs. 40.
The debentures were fully subscribed and all money was duly received.
Select the correct journal entries related to the above case from the following.
(A)
| Date | Particulars | L.F. | Dr. Amount | Cr. Amount |
|---|---|---|---|---|
| 10% Debenture Allotment A/c Dr. | 2,25,000 | |||
| To 10% Debentures A/c | 1,75,000 | |||
| To Securities Premium Reserve A/c | 50,000 |
(B)
| Date | Particulars | L.F. | Dr. Amount | Cr. Amount |
|---|---|---|---|---|
| Bank A/c Dr. | 1,25,000 | |||
| To 10% Debenture Application A/c | 1,25,000 |
(C)
| Date | Particulars | L.F. | Dr. Amount | Cr. Amount |
|---|---|---|---|---|
| Bank A/c Dr. | 2,00,000 | |||
| To 10% Debenture First & Final Call A/c | 2,00,000 |
(D)
| Date | Particulars | L.F. | Dr. Amount | Cr. Amount |
|---|---|---|---|---|
| Bank A/c Dr. | 2,20,000 | |||
| To 10% Debenture Allotment A/c | 2,20,000 |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B) and (C) only
Each debenture of Rs. 100 is issued at a premium of Rs. 10, so Rs. 110 is payable: Rs. 25 + Rs. 45 + Rs. 40. Multiply each instalment by 5,000 debentures.
(A) Allotment due Rs. 2,25,000 Correct.
Rs. 45 × 5,000 = Rs. 2,25,000
Debentures: Rs. 35 × 5,000 = Rs. 1,75,000
Premium: Rs. 10 × 5,000 = Rs. 50,000
(B) Application money received Rs. 1,25,000 Correct.
Rs. 25 × 5,000 = Rs. 1,25,000
(C) First and final call received Rs. 2,00,000 Correct.
Rs. 40 × 5,000 = Rs. 2,00,000
(D) Allotment money received Rs. 2,20,000 Incorrect. All money was duly received, so the allotment money received is the full Rs. 2,25,000.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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