Issue of Debentures can be made at par or at a discount or at premium. The Questions and Debentures are shown in the balance sheet under the heading A Unsecured loans B from BUSI 111 at University of the Pacific, Stockton. In the balance sheet of a company , the discount on issue of debentures is shown under which heading a) Fixed asset b) current asset c) investment d) miscellaneous expenditure 52. Here this option is … under which heading? The balance of Reserves and Surplus’, after adjusting negative balance of surplus shall be shown under the head Reserves and Surplus ‘even if the resulting figure in negative. Study Resources. Premium on Redemption of Debentures must be distinguished from Premium on Issue of Shares; the former is a liability to be shown along with Debentures under the heading Long-term Borrowings while the latter is a capital profit to be shown under Reserves and Surplus. Can you explain this answer? Answer: (b) Other non-current Assets. Redeemable Debentures; Perpetual Debentures; Convertible Debentures; Coupon Rate Debentures over here on EduRev! agree to the. Can Debentures be redeemed out of general reserve? And in the Notes to Accounts of Cash and Cash Equivalents, the amount of loan so received (in cash) is shown. 12.Give the major headings under which the following items will be shown in a company’s balance sheet as per Schedule III, Part I of the Companies Act, 2013. These test papers with solution are prepared by our team of expert teachers who are teaching grade in CBSE schools for years. This will list any debentures charged on your company in date order. 8 . of shares or debentures of the company (D) All of the above ... shown under Balance Sheet of a company under the heading (A) Non current Assets (B) Non current Liabilities (C) Current Assets (D) Current Liabilities 46. The unwritten balance will be shown in the balance sheet under ‘Miscellaneous Expenditure’ on the Asset side. Interest on Debenture is transferred to Statement of Profit and Loss at the end of year. 4. This account will be shown on the liabilities side of the Balance Sheet under the heading of Reserves and Surplus. is done on EduRev Study Group by Commerce Students. Answer. Equity and Liabilities following items in a Public Deposits, Capital Reserve, Interest Accrued and due on Debentures, Advances Received from Customers, Premium on Redemption of Debentures. Is there any Free Test Series for NEET 2021? 1), (Being the amount equal to 25% of debentures transferred to D.R.R. The answer is secured loans. Further information regarding these factors may be found under the heading "Business Risks" in our most recent management's discussion and analysis and under "Risk Factors" in our Annual Information Form dated February 28, 2017. 45,000 against purchase of machinery at nominal value of Rs. Debentures issued are shown under the heading of Non-current liabilities and sub-heading Long Term Borrowings. Sub-head (ii) (i) Debentures, (iii) Securities Premium Reserve, (iv) Pass the necessary journal entries related to the debenture interest for the half-yearly ending on 31st March, 2013 and transfer of interest on debentures to statement of profit and loss. Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31st March, 2016 assuming that interest is payable on 30th September and 31st March and the rate of tax deducted at source is 10%. As per the Revised Schedule-VI of the Companies Act, the issue of debenture as collateral security is shown as a Long-Term Borrowings under the heading of Non. The assets and liabilities consisted of the following: Plant and Machinery ₹4, 00,000 Building ₹6, 00,000 Stock ₹5,00,000 Debtors ₹3, 00,000 Creditors ₹2,00,000.Calculate amount of capital reserve. When the loan is paid back, the debentures issued as collateral security are returned to the company.These debentures do not carry any right till the time loan is being repaid along with due interest and the lender has not demanded the loan to be repaid. 5. The holders of such debentures are given an option to exchanging the amount of their debentures with equity shares or other securities after a specified period. On 1st April, 2013, the following balances appeared in the books of Blue and Green Ltd. 12% debentures (Redeemable on 31st August, 2015) (Rs.) payable is deducted before interest is paid to debenture and deposited to government account. incurred on the issue of debentures should normally be written off as early as possible but in no case later than the date of redemption. Debentures C. Share premium account… 100), (Being Debentures issued to vendors at a premium), (Being Debentures issued as collateral security), (Being interest made due for half yearly ending 30th September), (Being interest paid to debenture holders), (Being payments of tax on interest on debentures), (Being interest made due for half yearly ending 31st March), (Being interest paid to debentureholders’), (Being payment of tax or interest on debentures), (Being interest on debentures account transferred to statement of profit and loss), Surplus i.e., Balance In Statement of Profit and Loss, To Debenture Redemption Reserve A/c (W.N. Solution for appear under the heading capital and reserves in a company balance sheet? © 2021 myCBSEguide | CBSE Papers & NCERT Solutions, = Amount Due to Vendor  Issue Price Per Debenture =6,25,000625(500+125)=1,000, Change in Profit sharing ratio of Partners, Statement Analysis Tools and Accounting Ratios, Change in Profit sharing ratio of Partners Class 12 Accountancy Extra Questions, Cash Flow Statement Class 12 Accountancy Practice Questions, Statement Analysis Tools and Accounting Ratios Class 12 Accountancy Extra Questions, Important Questions for Class 12 Accountancy Financial Statements and Analysis, Retirement or Death of a partner Class 12 Accountancy Important Questions, Extra Questions of Class 12 Accountancy Fundamentals of partnership and Goodwill, Practice Questions for Class 12 Accountancy Dissolution of Partnership, Important Questions for Class 12 Accountancy FS of Non profit Organisation, Class 10 Science Sample Paper 2021 (Solved).