Question Papers 1789. 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. Answer: B 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. Qus:3. Discount on issue of debentures is shown under the following head in the Balance Sheet (a) Profit and loss account (b) Miscellaneous expenditure (c) Debentures account. 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. (C) In company’s balance sheet, debentures are shown under the head Long term Borrowings. 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 Balance Sheet. ANSWER: Debentures may be issue for cash at a par, at a discount or at a premium. Loose Tools iii. a) General Reserve debit to capital redemption reserve account You are required to show the above items under Equity and Liabilities of the Balance Sheet of the company as at 31st March, 2017. CBSE CBSE (Arts) Class 12. Answer. Debenture Redemption Premium Account appears under the head: A. D. Current Liabilities. Under Which Heads the Following Items Are Shown in the Balance Sheet of a Company: Concept: Role and Objectives of Financial Management. Balance with Banks According to company act, 2013, schedule 3, debentures are shown in the company's balance sheet under which head - 3977602 Entries for the accrued interest will be passed accordingly and it will be shown on the liabilities side of the Balance Sheet. 1. Question 6. Time Tables 18. Debentures are shown in the balance sheet under the heading A Unsecured loans B from BUSI 111 at University of the Pacific, Stockton Answer. 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. D. Notes to Accounts. Loose Tools iii. Under Which Heads the … Interest on loan is included in ‘other operating expenses’ under the Statement of Profit and Loss. Answer: B Journal entries Debentures Issue at Par On receipt of application money. (A) At maturity, debenture holders get back their money. 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. Interest accrued and due should be shown under the head Other Current Liabilities in a Balance Sheet of a Company. As per the Revised Schedule VI, Debenture Redemption Reserve (DRR) is shown in the Notes to Accounts of Reserve and Surplus. Ltd. issued 500, 9% Debentures of ₹ 500 each at a discount of 4% redeemable at a premium of 5% after three years. toppr. Solution for Under which head is the ‘Debenture Redemption Reserve’ shown in the Balance Sheet? as a “fund”. Under what heads the following items on the Liabilities side of the Balance sheet Of a company will be presented? The nature of security should be clearly mentioned. 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? (CPTDec. In case of debentures they are not secured by providing a collateral or security. (iii) Debit balance of statement of profit and loss shall be shown as a negative. C. Contingent Assets . Loans and Advances . 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. each of the specified heads); (ii) A reserve specifically represented by earmarked investments shall be termed. Profit and Loss A/c. If a company pays interest on debentures half yearly on 30th June and 31st December, while closing the accounts on 31st March, the interest for the period from 1st of January to 31st March will be accrued but not yet due. (CPTDec. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 10 Financial Statements of Companies. May 01, 2020 Aisha Dwivedi. When amount is payable in instalments entries will be similar to the issue of shares. Premium on debentures is shown under the head Reserves & Surplus on the liability side of the Balance Sheet. (D) Interest on debentures is a charge against profits. 3. The unwritten balance will be shown in the balance sheet under ‘Miscellaneous Expenditure’ on the Asset side. 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 Premium on Redemption of Debenture is shown in the Notes to Accounts under the sub-head of 'Other Long-term Liabilities'. 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'. It is a hybrid security, neither bond nor stock. These debentures have a charge on the assets. The amount is shown on the asset side of the balance sheet, under the head miscellaneous expenses, until written off. School of Distance Education Corporate Accounting Page 1 UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION B Com (2011 Admission Onwards) Yes,debenture in the balance sheet because debentures is liability for the company so it comes debit side in balance sheet in the books of the company. (i) Calls in Arrears (ii) Calls in Advance. (5) Transfer of DRR: When all the debentures are redeemed, DRR Account is closed by transferring the amount to General Reserve. Shown in the Equity and Liability part of the Balance Sheet under the head ‘Shareholders’ fund and sub-head ‘Reserves and Surplus’. (D) Interest on debentures is a charge against profits. Concept Notes & Videos & Videos 439. (ii) Interest on the Bank Loan to be paid annually but interest on Debentures to be paid half-yearly. Qus:2. As per Sec. B. 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. Practice important Questions. How will you show the following items in the Balance sheet of a company. Advertisement Remove all ads. Bank A/c Dr. To Debenture Application A/c. 2011) Answer. Textbook Solutions 11268. Which of the following is not a condition of buy-back of securities? (B) Debentures can be forfeited for non-payment of call money. Answered By . Answer (b) Miscellaneous expenditure. Important Solutions 2834. Proposed Dividend. True. 17. Debentures are usually secured against the assets of the company. Accounting for CA-CPT Part 2 Chapter 28. On 1 st April 2017, T.T. 2. In the same way, when the company issue debenture at discount the amount is debited to the discount on issue of debentures account. 4. (C) In company’s balance sheet, debentures are shown under the head Long term Borrowings. B. Question Bank Solutions 14550. (B) Debentures can be forfeited for non-payment of call money. 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. Students can solve NCERT Class 12 Accountancy Financial Statements of Companies MCQs Pdf with Answers to know their […] Syllabus. (Additions and deductions since last balance sheet to be shown under. If any debentures are held by the nominee or trustee for the company, details of the same should be stated. C. Non-Current Liabilities. Premium on Redemption of Debentures ii. Premium received on issue of Debenture is shown in _____. Accounting Treatment for Premium on Redemption on Debentures: 1. Reserves & Surplus. figure under the head “Surplus”. The company had not paid the interest, both on the Bank Loan and on the Debentures, till the Balance Sheet date. 19. True. May 01, 2020 Aisha Dwivedi. Issue of Debentures for Cash. 18. We show the Interest Accrued (whether due or not) on debentures is under the head ‘Current Liabilities,’ and sub-head ‘Other Current Liabilities’ Solved Question For You. False. Unclaimed Dividend. Bonus is the share of profit which is payable by the insurance company to the policyholders. 2. Debentures are shown in the balance sheet of the company under the item Secured loans. 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. 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. Qus:1. 78 of the Companies Act, the Discount on Issue of Debenture may be set-off against the Securities Premium Account, if any. A. (A) At maturity, debenture holders get back their money. Premium on Redemption of Debentures ii. 2011) Answer. Share Capital. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Balance with Banks A compulsory convertible debenture (CCD) is a bond that must be converted into stock at its maturity. If the debentures are convertible, the terms of conversion should be mentioned. Question 20: Under which head is the ‘Debenture Redemption Reserve’ shown in the Balance Sheet? 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? Discount on the Issue of Debentures: Discount or costs, e.g., commission, brokerage, etc. debenture liability, if the rate of interest on the debenture is higher than the market rate. Interest accrued on debentures should also be shown under the head ‘debentures’ in balance sheet.