Best Barcode Ltd. took a loan of ₹ 5,00,000 from a bank giving ₹ 6,00,000; 9% Debentures as collateral security. Pass journal entries regarding issue of debentures , if any, and show this loan in the Balance Sheet of the company.
Best Barcode Ltd.
Balance Sheet
Particulars
Note No.
Amount
(Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
2. Non-Current Liabilities
a. Long-Term Borrowings
1
5,00,000
3. Current Liabilities
Total
5,00,000
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents
2
5,00,000
Total
5,00,000
NOTES TO ACCOUNTS
Note No.
Particulars
Amount
(Rs)
1
Long-Term Borrowings
Loan (Secured by issue of 9% Debentures of Rs 6,00,000 as Collateral Security)
5,00,000
2
Cash and Cash Equivalents
Cash at Bank
5,00,000
Date
Particulars
L.F.
Debit Amount
Rs
Credit Amount
Rs
Bank A/c
Dr.
5,00,000
To Loan A/c
5,00,000
(Loan taken against issuing 9% Debentures as collateral Security)
Alternative Method:
Date
Particulars
L.F.
Debit Amount
Rs
Credit Amount
Rs
Bank A/c
Dr.
5,00,000
To Loan A/c
5,00,000
(Loan taken against issuing 9% debentures as collateral Security)
Debenture Suspense A/c
Dr.
6,00,000
To 9% Debentures A/c
6,00,000
(Issued 9% Debentures of Rs 6,00,000 as collateral security)
Posting in the Company's Balance Sheet
Best Barcode Ltd.
Balance Sheet
Particulars
Note No.
Amount
(Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
2. Non-Current Liabilities
a. Long-Term Borrowings
1
5,00,000
3. Current Liabilities
Total
5,00,000
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents
2
5,00,000
Total
5,00,000
NOTES TO ACCOUNTS
Note No.
Particulars
Amount
(Rs)
1
Long-Term Borrowings
Secured:
Loan (Secured by issue of 9% Debentures of
Rs 6,00,000 as Collateral Security)
5,00,000
9% Debentures (Issued as Collateral Security to Bank against loan)
6,00,000
Less: Debenture Suspense Account
6,00,000
-
5,00,000
2
Cash and Cash Equivalents
Cash at Bank
5,00,000
|
Best Barcode Ltd. |
||
|
Balance Sheet |
||
|
Particulars |
Note No. |
Amount (Rs) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
2. Non-Current Liabilities |
|
|
|
a. Long-Term Borrowings |
1 |
5,00,000 |
|
3. Current Liabilities |
|
|
|
Total |
|
5,00,000 |
|
|
|
|
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
2 |
5,00,000 |
|
Total |
|
5,00,000 |
|
|
|
|
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
Amount (Rs) |
|
|
|
|
|
1 |
Long-Term Borrowings |
|
|
|
Loan (Secured by issue of 9% Debentures of Rs 6,00,000 as Collateral Security) |
5,00,000 |
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
5,00,000 |
|
|
|
|
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
|
To Loan A/c |
|
|
5,00,000 |
|
|
|
(Loan taken against issuing 9% Debentures as collateral Security) |
|
|
|
|
|
|
|
|
|
|
|
Alternative Method:
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
|
To Loan A/c |
|
|
5,00,000 |
|
|
|
(Loan taken against issuing 9% debentures as collateral Security) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Suspense A/c |
Dr. |
|
6,00,000 |
|
|
|
To 9% Debentures A/c |
|
|
6,00,000 |
|
|
|
(Issued 9% Debentures of Rs 6,00,000 as collateral security) |
|
|
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet
|
Best Barcode Ltd. |
||
|
Balance Sheet |
||
|
Particulars |
Note No. |
Amount (Rs) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
2. Non-Current Liabilities |
|
|
|
a. Long-Term Borrowings |
1 |
5,00,000 |
|
3. Current Liabilities |
|
|
|
Total |
|
5,00,000 |
|
|
|
|
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
2 |
5,00,000 |
|
Total |
|
5,00,000 |
|
|
|
|
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
Amount (Rs) |
|
|
|
|
|
|
|
1 |
Long-Term Borrowings |
|
|
|
|
Secured: |
|
|
|
|
Loan (Secured by issue of 9% Debentures of Rs 6,00,000 as Collateral Security) |
5,00,000 |
|
|
|
9% Debentures (Issued as Collateral Security to Bank against loan) |
6,00,000 |
|
|
|
Less: Debenture Suspense Account |
6,00,000 |
- |
|
|
|
5,00,000 |
|
|
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
|
Cash at Bank |
5,00,000 |
|
|
|
|
|
|
