On 1st April, 2017, Jumbo Ltd. Issued 10,000; 12% Debentures Of Rs. 100 Each A Discount Of 20%, Redeemable After 5 Years.-Answer

2. On 1st April, 2017, Jumbo Ltd. issued 10,000; 12% debentures of Rs. 100 each a discount of 20%, redeemable after 5 years. The company decided to write-off discount on issue of such debentures over the life time of the Debentures. Show the items in the balance sheet of the company immediately after the issue of these debentures.

Balance Sheet

AS at 1 April,2017

	Particulars	Note No.	Amount
I	Equity and Liability
	1. Share holders Fund
	a. Reserve and Surplus
	2. Non-current Liabilities	1	10,00,000
	a. Long term Borrowing
	3. Current Liabilities
	a. Other Current Liabilities
	b. Short term Provision
	Total		10,00,000
II	Assets
	1. Non-current assets
	a. Other non-Current assets	2	1,60,000
	2. Current assets
	c. Cash and Cash equivalents	3	8,00,000
	d. Other Current Liabilities	4	40,000
	Total		10,00,00

Notes to Account:

Particulars		Amount (Rs.)
1. Long-term Borrowing
12% Debentures		10,00,000
2. Other non-Current assets
Discount on Issue of Debentures		1,60,000
3. Other Current Asset
Discount on Issue of Debentures		40,000
4. Cash and Cash Equivalents
Bank		8,00,000

Chapter-3 Financial Statement of a Company-II

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