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Submitted By youyounus
Words 1721
Pages 7
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37

CHAPTER – 7
Quick Revision Notes
ACCOUNTING FOR ISSUE OF DEBENTURES

Debentures Issued at par and redeemable at par

(i) For receipt of debenture application money:

Bank A/c

To X % Debenture Application A/c

Dr.

(ii) For transfer of Application money to debentures a/c :

X % Debenture Application A/c

To X % Debenture A/c

Dr.

(iii) For debenture allotment money due :

X % Debenture Allotment A/c

To X % Debenture A/c

Dr.

(iv) For receipt of allotment money:

Bank A/c

To X % Debenture Allotment A/c

Dr.

(v) For debenture call money due:

X % Debenture …… call A/c

To X % Debentures A/c

Dr.

(vi) For receipt of debenture call money :
Bank A/c

Dr.

To X % Debenture …… call A/c

Debentures Issued at premium and Redeemable at par

(a) When premium amount due with application money

(i)

For debenture application money received including premium :

Bank A/c

To X % Debenture Application A/c

(ii) For debenture application money adjusted :

Dr.

X % Debenture Application A/c

To X % Debentures A/c

To Securities Premium A/c

Dr.

(b) When premium amount due with allotment/call money (i)

For debenture allotment/call money due including premium :
X % Debenture Allotment/call A/c
Dr.
To X % Debentures A/c

38

Accounts–XII

To Securities Premium A/c

(ii) For receipt of debenture allotment/call money :

Bank A/c
Dr.
To X % Debenture Allotment/call A/c

Debentures Issued at par and redeemable at premium

(i)

For

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