Accounts Shares, Debenture

Issue of debenture with cash

  1. For receiving applications Bank a/c_______________________dr. To Debenture applications a/c
  2. Transfer of application money to share capital Debenture applications a/c____________dr. To Debenture a/c
  3. On Allotment money due Debenture allotment a/c______________dr. To Debenture a/c
  4. On receipt on money Bank a/c______________________dr.. To Debenture allotment a/c
  5. On calls money due Particulars calls A/c______________dr. To Debenture a/c
  6. On calls money receive Bank a/c______________________dr. To Particular calls
  7. .At the time of Oversubscriptions (When received applications are more then issued shares) Bank a/c_______________________dr. (With oversubscription amount) To Debenture applications a/c

    For the oversubscribed amount adjusted Debenture applications a/c_____________dr. To Debenture a/c To Bank a/c________________________ with amt. Refunded To allotment a/c_____________________ Amt. adjusted on allotment
  8. When issue of Debenture at Securities premium

    When Sec. Prem. at the time of applications Bank a/c______________________dr. (Total rec. amt including sec. prem.) To Debenture applications Debenture applications a/c__________________dr. (With full above amt.) To Debenture a/c To sec. Prem. a/c

    When Sec. Prem. at the time of allotment Debenture allotment a/c __________________dr. To Debenture a/c To sec. Prem. a/c Bank a/c__________________________dr. To Debenture allotment

    When Discount. at the time of applications Bank a/c______________________dr. (total amt. less discount) To Debenture applications Debenture applications a/c__________________dr. Discount on Debenture a/c_________________dr. To Debenture a/c ( with full above amt.)

    When Discount. at the time of allotment Debenture allotment a/c __________________dr. Discount on Debenture a/c_______________dr. To Debenture a/c Bank a/c________________________dr. (total amt. less discount) To Debenture allotment a/c
  9. Issue of Debenture other than cash

    For Assets/business purchase Sundry assets a/c________________________dr. Goodwill a/c_____________________________dr. To vendor a/c To liabilities a/c (if paid) To capital Reserve a/c

Note: - If Dr. side is less than GOODWILL is B/F & If Cr. Side less then CAPITAL RESERVE is B/F

  • On issue of at Debenture Par Vendor a/c_____________________________dr. To Debenture a/c
  • On issue of shares at Sec.Prem. Vendor a/c_______________________________dr. To Debenture a/c To sec. prem. a/c
  • On issue of Debenture at Discount Vendor a/c_________________________________dr. Discount on issue of Debenture a/c___________________dr. To Debenture a/c

Note:- A Working Note should be prepared to no, of Debenture be issued

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