debenture are shown in the balance sheet under the head

Qus:1. Textbook Solutions 11268. Answer: B a) General Reserve debit to capital redemption reserve account figure under the head “Surplus”. School of Distance Education Corporate Accounting Page 1 UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION B Com (2011 Admission Onwards) (Additions and deductions since last balance sheet to be shown under. True. Question 6. Proposed Dividend. Qus:3. In the same way, when the company issue debenture at discount the amount is debited to the discount on issue of debentures account. Premium received on issue of Debenture is shown in _____. Qus:2. B. Premium received on issue of debentures is capital profit, therefore, this will appear in the liabilities side of the Balance Sheet under the head 'Reserve and Surplus'. Question Bank Solutions 14550. Reserves & Surplus. Answer (b) Miscellaneous expenditure. (iii) Debit balance of statement of profit and loss shall be shown as a negative. Click hereto get an answer to your question ️ State under which major headings and sub - headings will the following items be presented in the Balance Sheet of a company as per Schedule - III. Answer: B Under what heads the following items on the Liabilities side of the Balance sheet Of a company will be presented? Balance Sheet. (ii) Interest on the Bank Loan to be paid annually but interest on Debentures to be paid half-yearly. Journal entries Debentures Issue at Par On receipt of application money. 2011) Answer. 2. Advertisement Remove all ads. Under Which Heads the Following Items Are Shown in the Balance Sheet of a Company: Concept: Role and Objectives of Financial Management. (5) Transfer of DRR: When all the debentures are redeemed, DRR Account is closed by transferring the amount to General Reserve. Students can solve NCERT Class 12 Accountancy Financial Statements of Companies MCQs Pdf with Answers to know their […] Syllabus. Classify the following items under major head and sub-head (if any) in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013: (i) Capital Work-in-Progress: (ii) Provision for Warranties; (iii) Income received in Advance; and (iv) Capital Advances According to company act, 2013, schedule 3, debentures are shown in the company's balance sheet under which head - 3977602 Solution for Under which head is the ‘Debenture Redemption Reserve’ shown in the Balance Sheet? Interest accrued and due should be shown under the head Other Current Liabilities in a Balance Sheet of a Company. Interest on loan is included in ‘other operating expenses’ under the Statement of Profit and Loss. Debentures may be issue for cash at a par, at a discount or at a premium. 1. Practice important Questions. Share Capital. each of the specified heads); (ii) A reserve specifically represented by earmarked investments shall be termed. In case of debentures they are not secured by providing a collateral or security. Loans and Advances . Give major heads and sub-heads under which following items are shown in a company's Balance Sheet as per Schedule Ill of the Companies Act, 2013: (i) Trade Payables, (ii) Provision for Tax, (iii) Dividend Payable, (iv) Surplus, i.e., Balance in Statement of Profit and Loss (Dr.), and (v) Surplus, i.e., Balance in Statement of Profit and Loss. Discount on the Issue of Debentures: Discount or costs, e.g., commission, brokerage, etc. Question Papers 1789. Loose Tools iii. You are required to show the above items under Equity and Liabilities of the Balance Sheet of the company as at 31st March, 2017. D. Current Liabilities. as a “fund”. Balance with Banks 3. C. Contingent Assets . In the balance sheet of a company, loss on issue of debentures account appears under the head: a) Share capital b) Reserves and Surplus c) Secured loans d) Miscellaneous expenditure ; What journal entry is passed for transfer to capital, redemption reserve account? Issue of Debentures for Cash. 2. As per Sec. Accounting Treatment for Premium on Redemption on Debentures: 1. The final balance after adding DRR, is shown as the sub-head 'Reserves and Surplus' under the main head of Shareholders' Funds on the Equity and Liabilities side of the Company's Balance Sheet. CBSE CBSE (Arts) Class 12. Profit and Loss A/c. Debentures are shown in the balance sheet of the company under the item Secured loans. (B) Debentures can be forfeited for non-payment of call money. (i) Calls in Arrears (ii) Calls in Advance. How will you show the following items in the Balance sheet of a company. True. Entries for the accrued interest will be passed accordingly and it will be shown on the liabilities side of the Balance Sheet. Under which heads and sub-heads the following items will appear in the Balance Sheet of a company as per revised Schedule VI, Part-I of the Companies Act 1956. i. Question 20: Under which head is the ‘Debenture Redemption Reserve’ shown in the Balance Sheet? (CPTDec. Which of the following is not a condition of buy-back of securities? When amount is payable in instalments entries will be similar to the issue of shares. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 10 Financial Statements of Companies. Debentures are shown in the balance sheet under the heading A Unsecured loans B from BUSI 111 at University of the Pacific, Stockton A compulsory convertible debenture (CCD) is a bond that must be converted into stock at its maturity. These debentures have a charge on the assets. The Premium on Redemption of Debenture is shown in the Notes to Accounts under the sub-head of 'Other Long-term Liabilities'. On redemption of Debentures, the amount lying in Debenture Redemption Reserve, ... 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 final balance is shown under the main head of 'Non-Current Liabilities' on the Equity and Liabilities side of the Company's Balance Sheet. ANSWER: (C) In company’s balance sheet, debentures are shown under the head Long term Borrowings. (CPTDec. Answered By . 17. If the debentures are convertible, the terms of conversion should be mentioned. Shown in the Equity and Liability part of the Balance Sheet under the head ‘Shareholders’ fund and sub-head ‘Reserves and Surplus’. The amount is shown on the asset side of the balance sheet, under the head miscellaneous expenses, until written off. The nature of security should be clearly mentioned. Bonus is the share of profit which is payable by the insurance company to the policyholders. Concept Notes & Videos & Videos 439. (A) At maturity, debenture holders get back their money. May 01, 2020 Aisha Dwivedi. Under which head and how are the following items shown in the Balance Sheet of a company under Schedule III: (i) Calls-in-Arrears; (ii) Share Application Money Pending Allotment; (iii) Unpaid Dividend; and (iv) Dividend not paid on Cumulative Preference Shares? Debentures are shown in the balance sheet under a.authorized capital b.issued capital c.current liabilities d.secured loans Posted 6 years ago Formats for preparation of various accounts relating to electricity companies are statutory forms under the __________ Act, 1910. Premium on debentures is shown under the head Reserves & Surplus on the liability side of the Balance Sheet. Debenture Redemption Premium Account appears under the head: A. A. As per the Revised Schedule VI, Debenture Redemption Reserve (DRR) is shown in the Notes to Accounts of Reserve and Surplus. The company may purchase its own debenture for the purpose of investment so that it can sell them in the future when its prices rise. Time Tables 18. 18. May 01, 2020 Aisha Dwivedi. Important Solutions 2834. 2011) Answer. The unwritten balance will be shown in the balance sheet under ‘Miscellaneous Expenditure’ on the Asset side. Balance with Banks D. Notes to Accounts. Interest accrued on debentures should also be shown under the head ‘debentures’ in balance sheet. Loose Tools iii. False. Needless to mention here that Discount on Issue of Debenture is shown in the asset side of the Balance Sheet under the head Miscellaneous Expenditure. The company under the head Long term Borrowings PDF Download of CBSE Multiple! Objectives of Financial Management trustee for the accrued interest will be shown as negative... 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debenture are shown in the balance sheet under the head 2021