A limited company made an issue of 10,000, 14% debentures of 100 each at par, which was
Question:
A limited company made an issue of 10,000, 14% debentures of ₹100 each at par, which was fully subscribed. The debentures were allotted on July 31, 2016, subscription being payable 10% on application, 40% on allotment, 25% on September 30, 2016, and the balance on November 30, 2015. Under the terms of the issue, payment could be made in full on July 31, 2016. Interest on any such prepayment at the the rate of 12% p.a. Such interest is not deductible from the subscribers’ payment, but is payable by the company on November 30, 2016. One allottee of 500 debentures took advantage of the prepayment terms, while others paid on the due dates. Journalise the entries to be made in the books of the company.
Step by Step Answer:
Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015
ISBN: 9789352605569
2nd Edition
Authors: M Hanif, A Mukherjee