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Question -

On 1st Aril, 2017, Jumbo Ltd. issued 10,000; 12% debentures of Rs. 100 each a discount of 20%, redeemable after 5 years. The company decided to write-off discount on issue of such debentures over the life time of the Debentures. Show the items in the balance sheet of the company immediately after the issue of these debentures.



Answer -

Balance Sheet

as at April 01, 2017

Particulars

Note No.

Amount 

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

 

 

b. Reserves and Surplus

 

 

2. Non-Current Liabilities

 

 

      a. Long-term Borrowings

1

10,00,000

3. Current Liabilities

 

 

      a. Other Current Liabilities

 

 

       b. Short-term Provisions

 

 

Total

 

10,00,000

 

 

 

II. Assets

 

 

1. Non-Current Assets

 

 

     a. Other Non-Current Assets

2

1,60,000

2. Current Assets

 

 

     a. Other Current Assets

3

40,000

     b. Cash and Cash Equivalents

4

8,00,000

Total

 

10,00,000

 

 

 

 

Notes to Accounts

Particulars

Amount

(Rs)

1. Long Term Borrowings

 

12% Debentures

10,00,000

 

 

2.Other Non-current assets

 

Unamortized discount on issue of Debentures

1,60,000

 

 

3. Other Current Assets

 

Unamortized discount on issue of Debentures

40,000

 

 

4. Cash and Cash Equivalents

 

Bank

8,00,000

 

 

 

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