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On 1st June, 2017, R Energy Ltd. Issued 10,000, 7% Debentures of ₹ 100 Each at a Discount of 10% Redeemable at a Premium of 10% at the End of Five Years. - Accountancy

Journal Entry

On 1st June, 2017, R Energy Ltd. issued 10,000, 7% Debentures of  ₹ 100 each at a discount of 10% redeemable at a premium of 10% at the end of five years. All the debentures were subscribed and allotment was made.

Prepare the Balance Sheet (extract) as at 31st March, 2018. 

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Solution

In the books of R Energy Ltd.
An Extract of Balance Sheet
As at 31st March, 2018

Particulars

Note No.

Amount
(₹)

I. EQUITIES AND LIABILITIES

 

 
   1. Shareholders’ Funds

 

 

       Reserves and Surplus

3

(2,00,000)

  2. Non-Current Liabilities

 

 

      a. Long-term Borrowings

1

10,00,000

      b. Other long-term Liabilities

2

1,00,000

Total

 

9,00,000

II. Assets

 

 

    Current Assets

 

 

    Cash and Cash Equivalents

4

9,00,000

Total

 

9,00,000

Notes to Accounts:

Note
No.

Particulars

 

Amount

(₹)

1. Long-term Borrowings

 

 

  10,000, 7% Debentures of ₹100 each issued at

 

10,00,000

2. Other long-term Liabilities

 

 

  Premium on Redemption of Debentures

 

1,00,000

3. Reserves and Surplus

 

 

  Statement of Profit & Loss

 

 

    Less: Loss on Issue of Debentures written off

(2,00,000)

(2,00,000)

4. Cash and Cash Equivalents

 

  On 7% debentures @  90 each (10,000 × 90)

9,00,000

  Is there an error in this question or solution?
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APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 2
Chapter 2 Issue of Debentures
Exercise | Q 47 | Page 57
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