A company took a loan of ₹ 4,00,000 from Bandhan Bank Ltd. and issued 8% Debentures of ₹ 4,00,000 as a collateral security.
When Debentures Issued as Collateral Security are shown separately
Date
Particulars
L.F.
Debit Amount
Rs
Credit Amount
Rs
Bank A/c
Dr.
4,00,000
To Loan from Bandhan Bank Ltd.
4,00,000
(Loan taken against issuing 8% Debentures as collateral security)
Debenture Suspense A/c
Dr.
4,00,000
To 8% Debenture A/c
4,00,000
(Debentures issued as collateral security)
Posting in the Company's Balance Sheet (When Debentures Issued as Collateral Security are shown separately)
Balance Sheet
Particulars
Note No.
Amount
(Rs)
I Equity and Liabilities
1.Shareholders’ Funds
2.Non-Current Liabilities
a. Long-Term Borrowings
1
4,00,000
3.Current Liabilities
Total
4,00,000
II Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents
2
4,00,000
Total
4,00,000
NOTES TO ACCOUNTS
Note No.
Particulars
Amount
(Rs)
1
Long-Term Borrowings
Secured:
Loan from Bandhan Bank (Secured by issue of Debentures of Rs 4,00,000)
4,00,000
8% Debentures (Issued as Collateral Security to Bank against Loan)
4,00,000
Less: Debenture Suspense Account
4,00,000
-
4,00,000
2
Cash and Cash Equivalents
Cash at Bank
4,00,000
Alternative Method: When debentures Issued as Collateral Security are not shown separately
Date
Particulars
L.F.
Debit Amount
Rs
Credit Amount
Rs
Bank A/c
Dr.
4,00,000
To Loan From Bandhan Bank Ltd.
4,00,000
(Loan taken from Bandhan Bank secured by issuing Debentures as collateral security)
(When Debentures Issued as Collateral Security are not shown separately)
Balance Sheet
Particulars
Note No.
Amount
(Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
2. Non-Current Liabilities
a. Long-Term Borrowings
1
4,00,000
3. Current Liabilities
Total
4,00,000
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents
2
4,00,000
Total
4,00,000
NOTES TO ACCOUNTS
Note No.
Particulars
Amount
(Rs)
1
Long-Term Borrowings
Secured:
Loan from Bandhan Bank (Secured by issue of 8% Debentures of Rs 4,00,000 as Collateral Security)
4,00,000
2
Cash and Cash Equivalents
Cash at Bank
4,00,000
When Debentures Issued as Collateral Security are shown separately
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
Bank A/c |
Dr. |
|
4,00,000 |
|
|
|
To Loan from Bandhan Bank Ltd. |
|
|
4,00,000 |
|
|
|
(Loan taken against issuing 8% Debentures as collateral security) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Suspense A/c |
Dr. |
|
4,00,000 |
|
|
|
To 8% Debenture A/c |
|
|
4,00,000 |
|
|
|
(Debentures issued as collateral security) |
|
|
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet (When Debentures Issued as Collateral Security are shown separately)
|
Balance Sheet |
||
|
Particulars |
Note No. |
Amount (Rs) |
|
I Equity and Liabilities |
|
|
|
1.Shareholders’ Funds |
|
|
|
2.Non-Current Liabilities |
|
|
|
a. Long-Term Borrowings |
1 |
4,00,000 |
|
3.Current Liabilities |
|
|
|
Total |
|
4,00,000 |
|
|
|
|
|
II Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
2 |
4,00,000 |
|
Total |
|
4,00,000 |
|
|
|
|
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
Amount (Rs) |
|
|
|
|
|
|
|
1 |
Long-Term Borrowings |
|
|
|
|
Secured: |
|
|
|
|
Loan from Bandhan Bank (Secured by issue of Debentures of Rs 4,00,000) |
4,00,000 |
|
|
|
8% Debentures (Issued as Collateral Security to Bank against Loan) |
4,00,000 |
|
|
|
Less: Debenture Suspense Account |
4,00,000 |
- |
|
|
|
4,00,000 |
|
|
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
|
Cash at Bank |
4,00,000 |
|
|
|
|
|
|
Alternative Method: When debentures Issued as Collateral Security are not shown separately
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
Bank A/c |
Dr. |
|
4,00,000 |
|
|
|
To Loan From Bandhan Bank Ltd. |
|
|
4,00,000 |
|
|
|
(Loan taken from Bandhan Bank secured by issuing Debentures as collateral security) |
|
|
|
|
|
|
|
|
|
|
|
(When Debentures Issued as Collateral Security are not shown separately)
|
Balance Sheet |
||
|
Particulars |
Note No. |
Amount (Rs) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
2. Non-Current Liabilities |
|
|
|
a. Long-Term Borrowings |
1 |
4,00,000 |
|
3. Current Liabilities |
|
|
|
Total |
|
4,00,000 |
|
|
|
|
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
2 |
4,00,000 |
|
Total |
|
4,00,000 |
|
|
|
|
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
Amount (Rs) |
|
|
|
|
|
1 |
Long-Term Borrowings |
|
|
|
Secured: |
|
|
|
Loan from Bandhan Bank (Secured by issue of 8% Debentures of Rs 4,00,000 as Collateral Security) |
4,00,000 |
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
4,00,000 |
|
|
|
|
