ABC & Co. issued 5,000 debentures of ₹ 1,000/- each at a premium of 10%, payable ₹ 200 on application, ₹ 500 on allotment (including premium) and the balance on first and final call. Applications were received for 7,

ABC & Co. Journal Entries Particulars Debit (in ₹) Credit (in ₹) 1 Bank A/c Dr. To Debenture Application A/c (Being application money for 7,000 debentures) (7,000 * ₹ 200/-) 14,00,000 14,00,000 2 Debenture Application A/c Dr. To Debenture A/c To Debenture Allotment A/c To Bank A/c (Being application money adjusted and surplus being refunded) 14,00,000 10,00,000 1,00,000 3,00,000 3 Debenture Allotment A/c Dr. To Debenture A/c To Securities Premium A/c (Being amount of allotment @ ₹ 500 on 5,000 debentures) 25,00,000 20,00,000 5,00,000 4 Bank A/c Dr. To Debenture Allotment A/c (Being balance amount on allotment due received) 24,00,000 24,00,000 5 Debenture Call A/c Dr. To Debenture A/c (Being amount due on call @ ₹ 400 on 5,000 debentures) 20,00,000 20,00,000 6 Bank A/c Dr. To Debenture Call A/c (Being amount due on call received) 20,00,000 20,00,000