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