Page 149 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Date
( )
( )

Nov. 1

To 12% Debenture Application Account

(Being receipt of application money in 10,000 debentures @ 15 per

debenture)
Nov. 1
12% Debenture Account
1,50,000
Dr.
To 12% Debenture Account
1,50,000

(Being transfer of application money to debenture account)

Dr.
12% Debenture Allotment Account
Nov. 1
4,50,000
To 12% Debenture Account

4,00,000

50,000
2005 Bank Account Particulars Dr. L.F. 1,50,000 1,50,000
To Premium on Debenture Account
(Being allotment money due on 10,000 debentures @ 45 per
debenture on premium)
Bank Account Dr. 5,70,000
To 12% Debenture Allotment Account 4,50,000
Accounting for Companies-I
To Calls-in-Advance Account 1,20,000
(Being receipt of allotment money and also calls-in- advance on 3,000
debentures @ 40 per debenture)
Notes 2006
Jan. 1 12% Debenture First Call Account Dr. 1,00,000
To 12% Debenture Account 1,00,000
(Being first call money due on 10,000 debenture @ 10 each)
Bank Account Dr. 70,000
Call-in-Advance Account Dr. 30,000
To 12% Debenture First Call Account 1,00,000
(Being receipt of first call money and calls-in-advance adjusted)
May, 1 12% Debenture Second & Final Call Account Dr. 3,00,000
To 12% Debenture Account 3,00,000
(Being second and final call money due on 10,000 debenture @ 30
per debenture)
Bank Account Dr. 2,01,000
Calls-in-advance Account Dr. 90,000
To 12% Debenture Second and Final Call Account 2,91,000
(Being receipt of second and final call on 6,700 debenture and calls-
in-advance adjusted)
Interest on calls in advance Account Dr. 1,500
To Bank Account 1,500
(Interest on calls in advance paid to Debenture-holders)

Working Note:
1. Total amount receivable on second and final call ( )
10,000 × 30 3,00,000
Less: amount already received on 3,000 debentures
3,000 × 30 90,000
Amount receivable 2,10,000
Less: Calls-in-Arrear
300 × 30 9,000
Amount received in second call 2,01,000
2. Interest on Calls in advance for two months
(Nov & Dec 2005)
30,000× 3 2
× = 150
100 12
Interest on calls-in-advance for six months
(Nov, Dec, 2005, Jan, Feb, March, April 2006 150)
90,000× 3 6
× = 1350
100 12
1500

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