Garvit Ltd. invited applications for issuing 3,000, 11% Debentures of Rs. 100 each at a discount of 6%. The full amount was payable on application. Applications were received for 3,600 debentures.
Applications for 600 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants.
Pass the necessary journal entries for the above transactions in the books of Garvit Ltd.
Marks-3, CBSE:2018-19/Main/01/Q-9*