[ISC] Q. 34 Solution of Issue of Debentures TS Grewal ISC 2023-24 Edition

Petromax Ltd. issued 5,000, 9% Debentures of ₹ 100 each at a premium of ₹ 20 per debenture payable as ₹ 30 on application, ₹ 50 including premium on allotment and the balance in equal instalments over two calls. Applications were received for 9,200 debentures and the allotment was does as under:

1. A. Applicants of 4,000 debentures—Allotted 3,000 debentures.
2. B. Applicants of 4,000 debentures—Allotted 2,000 debentures.
3. C. Applicants of 1,200 debentures—NIL.

Mohan, who had applied for 200 debentures (Category A) did not pay any money other than Application money. Sohan, who was allotted 80 debentures (Category B) paid the call money due along with allotment. All other allottees paid their dues as per schedule.

Pass the necessary Journal entries in the books of the company to record the above assuming that Calls-in-Arrears Account is maintained. Ignore interest on Calls-in-Arrears as well as Calls-in-Advance.