Niranjan Ltd. issued \( 40,000,8 \% \) Debentures of ₹ 100 each at par payable in equal amount on application, allotment and two calls. Applications were received for 50,000 debentures. Allotment of 40,000 , \( 8 \% \) Debentures was made on pro rate basis to all the applicants. One applicant to whom 480 debentures were allotted paid full amount while paying the allotment money and another debentureholder who applied for 400 debentures did not pay the final call. The remaining debentureholders paid the amount due as and when called upon to pay.
The first call was made three months after allotment date and the final call was made five months after the first call. The company received the Calls-in-Arrears on 400 shares three months after the final call became due with interest. The company paid the interest on Calls-in-Advance on the date of final call. Pass the necessary Journal entries in the books of the company. Interest on Calls-in-Arrears and ralls-in-Advance was @ 10\% p.a. and 12\% p.a. respectively.