Company Accounts 1

COMPANY ACCOUNTS
SOLUTIONS
ISSUE OF DEBENTURES

Issue of Debentures
1. False: Debenture holder are the creditors of the company.
2. True: Perpetual debentures, also known as irredeemable debentures are not repayable during the life
time of the company.
3. False: Registered debentures are not easily transferable by delivery. Bearer debentures are transferrable
by delivery.
4. True: In case the company cannot repay its loan & the interest thereon on the due date, the lender
becomes debenture holder & them only he is entitled to interest on debentures.
5. False: Debentures suspense account appears on asset side of balance sheet under non-current asset.
6. False: Even if the company incurs loss or earns profit, it has to pay the interest on debentures.
7. False: At the time of liquidation, debenture holders are paid off before shareholders on priority basis.
8. True: Convertible debentures can be converted into equity shares.
9. False: These debentures are repayable as per the terms of issue, for example, after 8 years from the date of
issue.
10. True: Debentures can be issued for a consideration other than for cash, such as for purchasing land,
machinery etc.
 Company Accounts 2

ANSWER TO Q.NO.1:
Books of Koinal Chemicals Ltd.
Journal Entries
Particulars Debit Credit
Amount Amount
(₹ lakhs) (₹ lakhs)
Bank A/c Dr. 400
To Debenture Application A/c 400
(Debenture application money received on 20,00,000 deb at 20)
Debentures Application A/c Dr. 400
To 10% Debentures A/c 400
(Debenture application money transferred)
Debenture allotment A/c Dr. 700
To 10% Debentures A/c 600
To Securities Premium A/c 100
(being allotment money of 35 including premium of 5 due on
20,00,000 deb)
Bank A/c Dr. 700
To Debenture Allotment A/c 700
(being Money received)
ANSWER TO Q.NO.2:
Journal Entries in the books of Kapil Limited
Date Date (₹) (₹)
2022 Bank A/c Dr. 55,00,000
March 1 To Debentures Application A/c 55,00,000
(Being the money received on 50,000 debentures @
₹110 each including premium of ₹ 10 each)
March 9 Debentures Application A/c Dr. 55,00,000
To 12% Debentures A/c 50,00,000
To Securities Premium A/c 5,00,000
(Being the allotment of 50,000 debentures of ₹100
each, premium @ ₹10 each transferred to Securities
Premium Account)
ANSWER TO Q.NO.3:
Journal Entries in the Books of Country Crafts Ltd.

Date Particulars L.F. Debit Credit

(₹) (₹ )
(a) Bank A/c Dr. 1,05,000
To Debenture Application and Allotment A/c
(Debenture application money received) 1,05,000
(b) Debenture Application and allotment A/c Dr. 1,05,000
Loss on Issue of Debenture A/c Dr. 10,000
To Securities Premium A/c 5,000
To 8% Debentures A/c 1,00,000
To Debenture Redemption Premium A/c 10,000
(Debenture application money transferred to debenture account)
 Company Accounts 3

ANSWER TO Q.NO.4:
Books of Atul Ltd. Journal Entries
Date Particulars L.F. Debit Credit
(₹ lakhs) (₹ lakhs)
Bank A/c Dr. 30,00
To Debenture Application A/c 30,00
(Debenture application money received)
Debenture Application A/c Dr. 30,00
To 8% Debentures A/c 30,00
(Application money transferred to 8% debentures
account consequent upon allotment)
Debenture allotment A/c Dr. 60,00
Discount on issue of debentures A/c Dr. 10,00
To 8% Debentures A/c 70,00
(Amount due on allotment)
Bank A/c Dr. 60,00
To Debenture Allotment A/c 60,00
(Money received consequent upon allotment)
ANSWER TO Q.NO.5:
In the books of Simmons Limited
April 1 Bank A/c Dr. 110
To Debentures Application A/c 110
(Being money received on 1,10,000 debentures)
April 7 Debentures Application A/c Dr. 10
To 12% Debentures A/c 100
To Bank A/c 10
(Being the allotment of 10,000 debentures of ₹ 100 each and
money on 10,000 debentures refunded as per Board’s Resolution
No…..dated…)
ANSWER TO Q.NO.6:
Books of Agrotech Ltd. Journal Entries
Date Particulars L.F. Debit Credit
(₹) Lakhs (₹) Lakhs
Bank A/c Dr. 7,500
To Debenture Application A/c 7,500
(Debentures application money received)
Debenture Application A/c Dr. 7,500
To 9% Debentures A/c 7,500
(Application money transferred to 9% deb account)
Debenture Allotment A/c Dr. 6,600
Loss on issue of debenture A/c Dr. 1,650
To 9% Debentures A/c 7,500
To Debenture redemption premium A/c 7,50
(Call made consequent upon allotment of debentures
issued at discount and redeemable at premium)
Bank A/c Dr. 6,600
To Debenture Allotment A/c 6,600
(Allotment amount received)
Working Notes : Loss on issue of debentures =
(Amount of discount on issue + Premium payable on redemption) x No. of Debentures
= (6% of ₹100 + 5% of ₹100) x 150 lakh = (₹6 + ₹5) x 150 lakh = ₹1,650 lakh
 Company Accounts 4

ANSWER TO Q.NO.7:
In the books of X Limited
Journal Entries
Date Particulars ₹ ‘000 ₹ ‘000
2021
May 31 Bank A/c Dr. 10,800
To Debentures Application A/c 10,800
(Being money received for 1,20,000 debentures @ ₹90 each)
June 9 Debentures Application A/c Dr. 10,800
Discount on Issue of Debentures A/c Dr. 1,000
To 12% Debentures A/c 10,000
To Bank A/c 1,800
(Being excess money on 20,000 debentures @ ₹90 refunded the
allotment of 1,00,000 debentures of ₹100 each at a discount of ₹10
per debenture as per Board’s Resolution No….. dated ….)

LEDGER ACCOUNTS
Bank Account
Date Particulars ₹ Date Particulars ₹
31.5.2021 To Debentures Application 10,800 9.6.2021 By Debentures Application 1,800
A/c A/c
9.6.2021 By Balance c/d 9,000
10,800 10,800

12% Debentures Account

Date Particulars ₹ Date Particulars ₹
30.6.2021 To Balance c/d 10,000 9.6.2021 By Debentures Application A/c 9,000
9.6.2021 By Discount on Issue of Debentures A/c 1,000
10,000 10,000

Debentures Application Account

Date Particulars ₹ Date Particulars ₹
9.6.2021 To Bank A/c 1,800 31.5.2021 By Bank A/c 10,800
9.6.2021 To 12% Debentures A/c 9,000
10,800 10,800

Discount on Issue of Debentures Account

Date Particulars ₹ Date Particulars ₹
9.6.2021 To12% Debentures A/c 1,000 30.6.2021 By Balance c/d 1,000
1,000 1,000
 Company Accounts 5

ANSWER TO Q.NO.8:
Method 1:
No journal entry in the books of accounts; only disclosure in notes to accounts as follows:
Notes to Accounts of X Limited as at…(includes)
Long Term Borrowings ₹
Secured Loan
IDBI Loan 1,00,00,000
(Collaterally secured by issue of ₹1,50,00,000 14% First Mortgage Debentures)
Method 2: Following journal entry shall be made:
Debentures Suspense Account 1,50,00,000
To 14% Debentures Account 1,50,00,000
(Being the issue of 1500000 debentures collaterally as per Board’s Resolution No…..dated)
The Debentures Suspense Account will appear on the assets side of the Balance Sheet under Other Non-
Current Assets and Debentures on the liabilities side of the Balance Sheet. When the loan is repaid, the entry
is reversed in order to cancel it.
ANSWER TO Q.NO.9:
(a) Bank A/c Dr. 22,50,000
Discount on issue of Debentures A/c Dr. 2,50,000
To 14% Debentures A/c Dr. 22,50,000
(b) Fixed Assets A/c Dr. 10,00,000
To Vendor A/c 10,00,000
(Being the purchase of fixed assets from vendor)
Vendor A/c Dr. 10,00,000
Discount on Issue of Debentures A/c Dr. 2,50,000
To 14% Debentures A/c 12,50,000
(Being the issue of debentures of ₹ 12,50,000 to vendor)
(c) Bank A/c Dr. 10,00,000
To Bank Loan A/c 10,00,000
(Being a loan of ₹10,00,000 taken from bank by issuing debentures
of ₹12,50,000 as collateral security)
ANSWER TO Q.NO.10:
Total amount of discount comes to ₹6,00,000 (₹6 X 1,00,000). The amount of discount to be written-off :
Year end Debentures Ratio in which discount Amount of discount to be
outstanding to be written-off written-off
1st ₹1,00,00,000 1/5 1/5th of ₹6,00,000 = ₹1,20,000
2nd ₹1,00,00,000 1/5 1/5th of ₹6,00,000 = ₹1,20,000
3rd ₹1,00,00,000 1/5 1/5th of ₹6,00,000 = ₹1,20,000
4th ₹1,00,00,000 1/5 1/5th of ₹6,00,000 = ₹1,20,000
5th ₹1,00,00,000 1/5 1/5th of ₹6,00,000 = ₹1,20,000
ANSWER TO Q.NO.11:
Calculation of amount of discount to be written-off
At the Debentures Ratio of Amount of discount to be
Year end Outstanding Benefit written-off
before redemption Derived
2021 ₹20,00,000 5 5/15th of ₹1,20,000 = ₹40,000
2022 ₹16,00,000 4 4/15th of ₹1,20,000 = ₹32,000
2023 ₹12,00,000 3 3/15th of ₹1,20,000 = ₹24,000
2024 ₹8,00,000 2 2/15th of ₹1,20,000 = ₹16,000
2025 ₹4,00,000 1 1/15th of ₹1,20,000 = ₹8,000
TOTAL 15 ₹1,20,000
 Company Accounts 6

ANSWER TO Q.NO.12
Journal Entries
Date Particulars (₹) (₹)
1-1-2021 Bank A/c Dr. 9,00,000
Loss on Issue of Debentures A/c Dr. 1,50,000
To 12% Debentures A/c 10,00,000
To Premium on Redemption of Debentures A/c 50,000
(For issue of debentures at discount redeemable at premium)
30-6-2021 Debenture Interest A/c Dr. 60,000
To Debenture holders A/c 54,000
To Tax Deducted at Source A/c 6,000
(For interest payable)
Debenture holders A/c Dr. 54,000
Tax Deducted at Source A/c Dr. 6,000
To Bank A/c 60,000
(For payment of interest and TDS)
31-12-2021 Debenture Interest A/c Dr. 60,000
To Debenture holders A/c 54,000
To Tax Deducted at Source A/c 6,000
(For interest payable)
Debenture holders A/c Dr. 54,000
Tax Deducted at Source A/c Dr. 6,000
To Bank A/c 60,000
For payment of interest and tax)
Profit and Loss A/c Dr. 1,20,000
To Debenture Interest A/c 1,20,000
(For transfer of debenture interest to profit and loss account
at the end of the year)
Profit and Loss A/c Dr. 30,000
To Loss on issue of debenture A/c 30,000
(For proportionate debenture discount and premium on
redemption written off, i.e., 1,50,000 x 1/5)

ANSWER TO Q.NO.13
Books of Amol Ltd.
Journal
Bank A/c Dr. 20,00,00,000
To Debenture Application A/c 20,00,00,000
(Debenture application money received)

Debenture Application A/c Dr. 20,00,00,000

To 9% Debentures A/c 20,00,00,000
(Application money transferred to 9% debentures
account consequent upon allotment)
 Company Accounts 7

ANSWER TO Q.NO.14
Books of Modern Equipments Ltd. Journal
Date Particulars Debit Credit
Amount Amount
(₹ Lakhs) (₹ Lakhs)
Bank A/c Dr. 120
To Debentures application A/c 120
(Debenture application money received)
Debentures Application A/c Dr. 120
To 12% Debentures A/c 120
(Application money transferred to 12% debentures account
consequent to allotment)
Debentures Allotment A/c Dr. 280
Loss on issue of Debentures A/c Dr. 40
To 12% Debentures A/c
280
To Debenture redemption premium A/c
(Call made on allotment of debentures at par and entry for 40
debentures redeemable at premium)
Bank A/c Dr. 280
To Debentures allotment A/c 280
(Call made consequent upon allotment money received)

ANSWER TO Q.NO.15

(i) Journal in the Books of Sheru Ltd.

Date Particulars LF (₹ 00) (₹ 00)
2020
Apr 1 Bank A/c 1,14,000
To Debenture Application A/c 1,14,000
(Being debenture application money received for 1,20,000
debentures)
Debenture Application A/c Dr. 1,14,000
Discount on Issue of Debenture A/c Dr. 5,000
To 12% Debenture A/c 1,00,000
To Bank A/c 19,000
(Being application money transferred to debenture
account and excess refunded)
 Company Accounts 8

(ii) Discount on Issue of Debenture A/c

Date Particulars ₹'00 Date Particulars ₹'00
1.4.20 To 12% Debentures A/c 5,000 31.3.21 By Profit & Loss A/c 1,000
31.3.21 By Balance c/d 4,000
5,000 5,000
1.4.21 To Balance b/d 4,000 31.3.22 By Profit & Loss A/c 1,000
31.3.22 By Balance c/d 3,000
4,000 4,000
1.4.22 To Balance b/d 3,000 31.3.23 By Profit & Loss A/c 1,000
31.3.23 By Balance c/d 2,000
3,000 3,000
1.4.23 To Balance b/d 2,000 31.3.24 By Profit & Loss A/c 1,000
31.3.24 By Balance c/d 1,000
2,000 2,000
1.4.24 To Balance b/d 1,000 31.3.25 By Profit & Loss A/c 1,000
1,000 1,000

(iii) Interest A/c

Date Particulars ₹'00 Date Particulars ₹'00
31.3.21 To Debentureholder A/c 12,000 31.3.21 By Profit & Loss A/c 12,000
12,000 12,000
31.3.22 To Debentureholder A/c 12,000 31.3.22 By Profit & Loss A/c 12,000

12,000 12,000
31.3.23 To Debentureholder A/c 12,000 31.3.23 By Profit & Loss A/c 12,000

12,000 12,000
31.3.24 To Debentureholder A/c 12,000 31.3.24 By Profit & Loss A/c 12,000

12,000 12,000
31.3.25 To Debentureholder A/c 12,000 31.3.25 By Profit & Loss A/c 12,000

12,000 12,000
Debentureholder A/c
Date Particulars ₹'00 Date Particulars ₹'00
31.3.21 To Bank A/c 10,800 31.3.21 By Interest A/c 12,000
31.3.21 To TDS A/c 1,200

12,000 12,000
31.3.22 To Bank A/c 10,800 31.3.22 By Interest A/c 12,000
31.3.22 To TDS A/c 1,200

12,000 12,000
31.3.23 To Bank A/c 10,800 31.3.23 By Interest A/c 12,000
31.3.23 To TDS A/c 1,200
12,000 12,000
31.3.24 To Bank A/c 10,800 31.3.24 By Interest A/c 12,000
31.3.24 To TDS A/c 1,200
12,000 12,000
31.3.25 To Bank A/c 10,800 31.3.25 By Interest A/c 12,000
31.3.25 To TDS A/c 1,200
12,000 12,000
 Company Accounts 9

ANSWER TO Q.NO.16
Books of Koinal Chemicals Ltd.Journal
Date Particulars L.F. Debit Credit
Amount (₹) Amount (₹)
Bank A/c Dr. 3,00,00,000
To Debenture Application A/c 3,00,00,000
(Debenture application money received)
Debentures Application A/c Dr. 3,00,00,000
To 10% Debentures A/c 2,25,00,000
To Securities Premium A/c 75,00,000
(Application money transferred to 10% debentures account
and securities premium account consequent upon allotment)
Debenture Allotment A/c Dr. 5,25,00,000
To 10% Debentures A/c 5,25,00,000
(Call made consequent upon allotment)
Bank A/c Dr. 5,25,00,000
To Debenture Allotment A/c 5,25,00,000
(Call made consequent upon allotment money received)
ANSWER TO Q.NO.17
Books of Samar Ltd. Journal
Particulars L.F. Debit (₹) Credit (₹)
1-1-2022 Bank A/c Dr. 18,00,000
Loss on Issue of Debentures A/c Dr. 3,00,000
To 10% Debentures A/c 20,00,000
To Premium on Redemption of Debentures A/c 1,00,000
(For issue of debentures at discount redeemable at premium)
30-6- Debenture Interest A/c Dr. 1,00,000
2022 To Debenture holders A/c 90,000
To Tax Deducted at Source A/c 10,000
(For interest payable)
Debenture holders A/c Dr. 90,000
Tax Deducted at Source A/c Dr. 10,000
To Bank A/c 1,00,000
(For payment of interest and TDS)
31-12- Debenture Interest A/c Dr. 1,00,000
2022 To Debenture holders A/c 90,000
To Tax Deducted at Source A/c 10,000
(For interest payable)
Debenture holders A/c Dr. 90,000
Tax Deducted at Source A/c Dr. 10,000
To Bank A/c 1,00,000
(For payment of interest and tax)
Profit and Loss A/c Dr. 2,00,000
To Debenture Interest A/c 2,00,000
(For transfer of debenture interest to profit and loss account
at the end of the year)
Profit and Loss A/c Dr. 60,000
To Loss on issue of debenture A/c 60,000
(For proportionate debenture discount and premium on
redemption written off, i.e., 3,00,000 x 1/5)
 Company Accounts 10

ANSWER TO Q.NO.18
In the books of Somya Ltd.
Journal Entries
Date Particulars Dr. Cr.
₹ ₹
(a) Bank A/c Dr. 67,50,000
To Debentures Application A/c 67,50,000
(Being the application money received on 15,000 debentures @ ₹
450 each)
Debentures Application A/c Dr. 67,50,000
Discount on issue of Debentures A/c Dr. 7,50,000
To 14% Debentures A/c 75,00,000
(Being the issue of 15,000 12% Debentures @ 90% as per Board’s
Resolution No….dated….)
(b) Fixed Assets A/c Dr. 30,00,000
To Vendor A/c 30,00,000
(Being the purchase of fixed assets from vendor)
Vendor A/c Dr. 30,00,000
Discount on Issue of Debentures A/c Dr. 7,50,000
To 14% Debentures A/c 37,50,000
(Being the issue of debentures of ₹37,50,000 to vendor to satisfy
his claim)
(c) Bank A/c Dr. 30,00,000
To Bank Loan A/c (See Note) 30,00,000
(Being a loan of ₹ 30,00,000 taken from bank by issuing debentures
of ₹37,50,000 as collateral security)

Note: No entry is made in the books of account of the company at the time of making issue of such debentures.
In the “Notes to Accounts” of Balance Sheet, the fact that the debentures being issued as collateral security
and outstanding are shown by a note under the liability secured.
 Company Accounts 11

ANSWER TO Q.NO.19
Journal Entries
Date Particular L.F Dr. Cr.
2020 Sundry Assets A/c Dr. 4,50,000
April Goodwill A/c (Bal. fig) Dr. 50,000
To Himalayan Ltd. A/c 4,40,000
To Sundry Liabilities A/c
60,000
(Being Assets and liabilities taken over for a net consideration of
₹4,40,000)

Himalyan Ltd. A/c Dr. 4,40,000

To 8% Debentures A/c 4,00,000
To Securities Premium A/c 40,000
(Being 4000; 8% Debenture of ₹ 100 each issued at a premium of
10% to settle purchase consideration)
Bank A/c Dr. 90,000
To Debenture Application A/c 90,000
(Being the application money received for 3000, 8% Debenture)

Debenture Application A/c 90,000

To 8% Debenture A/c 90,000
(Being 3000; 8% Debenture allotted)
Debentures allotment A/c Dr. 1,80,000
Loss on issue of debenture A/c Dr. 45,000
To 8% Debentures A/c 2,10,000
To Premium on redemption of debentures A/c 15,000
(Being allotment money due on 3000; 8% Debentures at 10% discount
and redeemable at 5% premium)

Bank A/c Dr. 1,80,000

To Debentures Allotment A/c 1,80,000
(Being the allotment money received)
2021
Mar,31 Profit and Loss A/c Dr. 45,000
To Loss on issue of Debenture A/c 45,000
(Being the Loss on issue of debenture written off)

ANSWER TO Q.NO.20
Total amount of discount comes to ₹ 3,00,000 (₹ 0.6 X 5, 00,000). The amount of discount to be written-off
in each year is calculated as under:
Year end Debentures Ratio in which discount to be Amount of discount to be
Outstanding written-off written-off
1 st
₹ 50,00,000 1/5th of ₹ 3,00,000 = ₹ 60,000
2nd ₹ 50,00,000 1/5th of ₹ 3,00,000 = ₹ 60,000
3 rd
₹ 50,00,000 1/5th of ₹ 3,00,000 = ₹ 60,000
4th ₹ 50,00,000 1/5th of ₹ 3,00,000 = ₹ 60,000
5 th
₹ 50,00,000 1/5th of ₹ 3,00,000 = ₹ 60,000
 Company Accounts 12

ANSWER TO Q.NO.21
Books of Avantika Ltd. Journal
Machinery A/c Dr. 9,90,000
To Avneet Ltd. 9,90,000
(Machinery purchased)
Case(i) When debentures are issued at par:
Avneet Ltd. Dr. 9,90,000
To 10% Debentures A/c 9,90,000
(10% Debentures issued to Avneet Ltd.)
Case(ii) When debentures are issued at 20% discount:
Avneet Ltd. Dr. 9,90,000
Discount on Issue of Debentures A/c Dr. 2,47,500
To 10% Debentures A/c 12,37,500
(10% Debentures issued to Avneet Ltd. at 20% discount)
Case(iii) When debentures are issued at 20% premium:
Avneet Ltd. Dr. 9,90,000
To 10% Debentures A/c 8,25,000
To Premium on Issue of Debentures A/c 1,65,000
(10% Debentures issued to Avneet Ltd. at 20% premium)
Workings:
(a) Number of debentures issued in case of 20% discount:
Face value 100
Less: Discount 20% 20
Value at which issued 80
₹ 9,90,000/80 = 12,375 Debentures
(b) Number of debentures issued in case of 20% premium:
Face value 100
Add: Premium 20% 20
Value at which issued 120
₹9,90,000/ 120 = 8,250 Debentures

ANSWER TO Q.NO.22
Books of Priya Ltd. Journal
Bank A/c Dr. 1,00,00,000
To Debenture Application A/c 1,00,00,000
(Debenture application money received)

Debenture Application A/c Dr. 1,00,00,000

To 12% Debentures A/c 1,00,00,000
(Application money transferred to 12% debentures account
consequent upon allotment)
Debenture allotment A/c Dr. 1,25,00,000
Discount on issue of debentures A/c Dr. 25,00,000
To 12% Debentures A/c 15,000,000
(Amount due on allotment)
Bank A/c Dr. 1,25,00,000
To Debenture Allotment A/c 125,00,000
(Money received consequent upon allotment)
 Company Accounts 13

ANSWER TO Q.NO.23
In the books of A Limited
Date Particulars ₹ '000 ₹ '000
April 1 Bank A/c Dr. 38,500
To 12% Debentures Application A/c 38,500
(Being money received on 3,85,000 debentures)
April 7 12% Debentures Application A/c Dr. 3,500
To Bank A/c 3,500
(Being money on 35,000 debentures refunded as per Board’s
Resolution No…. dated…)
April 7 12% Debentures Application A/c Dr. 35,000
To 12% Debentures A/c 35,000
(Being the allotment of 3,50,000 debentures of ₹ 100 each at
par, as per Board’s Resolution No….dated…)

ANSWER TO Q.NO.24
Total amount of discount comes to ₹ 60,000 (₹ 0.6 X 1, 00,000). The amount of discount to be written-off in
each year is calculated as under:
Year end Debentures Ratio in which discount Amount of discount to be
Outstanding to be written-off written-off
1st ₹ 10, 00,000 1/5 1/5th of ₹ 60,000 = ₹ 12,000
2nd ₹ 10, 00,000 1/5 1/5th of ₹ 60,000 = ₹ 12,000
3rd ₹ 10, 00,000 1/5 1/5th of ₹ 60,000 = ₹ 12,000
4th ₹ 10, 00,000 1/5 1/5th of ₹ 60,000 = ₹ 12,000
5th ₹ 10, 00,000 1/5 1/5th of ₹ 60,000 = ₹ 12,000

ANSWER TO Q.NO.25
Books of Pihu Ltd. Journal
Particulars L.F. Debit Credit

(₹ ) (₹ )
Bank A/c Dr. 20,00,00,000
To Debenture Application A/c
(Debenture application money received) 20,00,00,000

Debenture Application A/c Dr. 20,00,00,000

To 9% Debentures A/c 20,00,00,000
(Application money transferred to 9% debentures
account consequent upon allotment)

Debenture allotment A/c Dr. 25,00,00,000

Discount on issue of debentures A/c Dr.
5,00,00,000
To 9% Debentures A/c 30,00,00,000
(Amount due on allotment)
Bank A/c Dr. 25,00,00,000
To Debenture Allotment A/c 25,00,00,000
(Money received consequent upon allotment)