Question

How would you disclose the following items in the Balance Sheet of a Company :

(i) Share Issue Expenses (to be written off in next 12 months)

(ii) Share Issue Expenses (to be written off after 12 months)

(iii) Premium on Redemption of Debentures

(iv) Debit balance of Statement of Profit and Loss

(v) Loan from Bank

(vi) Loan repayable on demand

(vii) Shares in S.B.I.

(viii) Investments

(ix) Interest Accrued on Investments

(x) Guarantees given by the Company

Answer 1

$\begin{array}{cccc}\text{S. No}& \text{Items}& \text{Major Head}& \text{Sub-Head}\\ \text{(i)}& \text{Share Issue Expenses (to}& \text{Current Assets}& \text{Other Current Assets}\\ & \text{be written off in next 12}& & \\ & \text{months)}& & \\ \text{(ii)}& \text{Share Issue Expenses (to}& \text{Non Current Assets}& \text{Other Non Current Assets}\\ & \text{be written off after 12}& & \\ & \text{months)}& & \\ \text{(iii)}& \text{Premium on Redemption}& \text{Non Current Liabilities}& \text{Other long term Liabilities}\\ & \text{of Debentures.}& & \\ \text{(iv)}& \text{Debit balance of}& \text{Shareholder's Funds}& \text{Reserve and Surplus}\\ & \text{Statement of Profit and Loss}& & \text{(shown as a negative}\\ & & & \text{figure) under 'Surplus'.}\\ \text{(v)}& \text{Loan from Bank}& \text{Non Current Liabilities}& \text{Long term Borrowings}\\ \text{(vi)}& \text{Loan repayable on demand}& \text{Current Liabilities}& \text{Short term Borrowings}\\ \text{(vii)}& \text{Shares in S.B.I}& \text{Non Current Assets}& \text{Non Current Investments}\\ \text{(viii)}& \text{Investments}& \text{Non Current Assets}& \text{Non Current Investments}\\ \text{(ix)}& \text{Interest Accrued on}& \text{Current Assets}& \text{Other Current Assets}\\ & \text{Investments}& & \\ \text{(x)}& \text{Guarantees given by the}& \text{Contingent Liability and}& \\ & \text{Company}& \text{commitments (to be}& \\ & & \text{shown under Contingent}& \\ & & \text{Liabilities in 'Notes to}& \\ & & \text{Accounts')}& \end{array}$