Hero Ltd. has raised following long-term loans on 1st April, 2018: 10,000; 10% Debentures of ₹ 100 each redeemable in four equal yearly ₹ installments beginning 1st July, 2019 10,00,000 11% Bank Loan from SBI repayable after 5 years 20,00,000 Interest on Debentures and Bank Loan has not yet been paid. How will be the above items shown in the Balance Sheet of the company as at 31st March, 2019?

Extract of Balance Sheetas at March 31, 2019 Particulars Note No. Amount (₹) 2. Non-Current Liabilities Long-term Borrowings 11% Loan from SBI 20,00,000 27,50,000 7,500, 10% Debentures of Rs 100 each 7,50,000 3. Current Liabilities Other Current Liabilities Current Maturity of Long-term Debts (2,500 Debentures of Rs 100 each maturing within 12 months) 2,50,000 5,70,000 Interest accrued and Due on Debentures 1,00,000 Interest accrued and Due on Loan 2,20,000 Total 33,20,000

Hero Ltd. Has Raised Following Long-term Loans on 1st April, 2018: 10,000; 10% Debentures of ₹ 100 Each Redeemable in Four Equal Yearly - Accountancy

Question

Hero Ltd. has raised following long-term loans on 1st April, 2018:

10,000; 10% Debentures of ₹ 100 each redeemable in four equal yearly	₹
installments beginning 1st July, 2019	10,00,000
11% Bank Loan from SBI repayable after 5 years	20,00,000
Interest on Debentures and Bank Loan has not yet been paid.

How will be the above items shown in the Balance Sheet of the company as at 31st March, 2019?

Ledger

Solution

Extract of Balance Sheet
as at March 31, 2019

Particulars			Note No.	Amount (₹)
2. Non-Current Liabilities
Long-term Borrowings
11% Loan from SBI		20,00,000		27,50,000
7,500, 10% Debentures of Rs 100 each		7,50,000
3. Current Liabilities
Other Current Liabilities
Current Maturity of Long-term Debts (2,500 Debentures of Rs 100 each maturing within 12 months)	2,50,000			5,70,000
Interest accrued and Due on Debentures	1,00,000
Interest accrued and Due on Loan	2,20,000
Total				33,20,000