X Ltd. issued 10% Debentures of nominal value of Rs 10,00,000 as follows:
(i) To sundry persons for cash at par – Rs 5,00,000 nominal.
(ii) To a vendor for Rs 5,50,000 for purchase of fixed assets – Rs 5,00,000 nominal.
Pass Journal entries in the books of X Ltd.
Bank a/c Dr. 5,00,000
To Debenture application and allotment a/c 5,00,000
Debenture application and allotment a/c Dr. 5,00,000
To 10% debentures a/c 5,00,000
Fixed assets a/c Dr. 5,50,000
To Vendor's a/c 5,50,000
Vendor's a/c Dr. 5,50,000
To 10% debentures a/c 5,00,000
To Securities premium a/c 50,000
To Debenture application and allotment a/c 5,00,000
Debenture application and allotment a/c Dr. 5,00,000
To 10% debentures a/c 5,00,000
Fixed assets a/c Dr. 5,50,000
To Vendor's a/c 5,50,000
Vendor's a/c Dr. 5,50,000
To 10% debentures a/c 5,00,000
To Securities premium a/c 50,000