Question

On 1st June, 2015, R Energy Ltd. issued 10,000, 7% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% at the end of five years . All the debentures were subscribed and allotment was made . Loss on issue of Debentures is to be written off over the life of the debentures.
Prepare the Balance Sheet (extract) as at 31st March, 2016 and 31st March, 2017 showing Loss on issue of Debentures.

Answer 1

Balance Sheet as at March 31, 2016
Particulars		Note No.	Amount (Rs)
II Assets
1. Non-Current Assets
a. Other Non-Current Assets			1,20,000
2. Current Assets
a. Other Current Assets			40,000
Total			1,60,000
NOTES TO ACCOUNTS
Note No.	Particulars					Amount (Rs)
1.	Other Non-current Assets
	Loss on issue of Debentures			1,60,000
	Less: Shown as Other Current Assets			40,000		1,20,000
	(To the extent to be written off after 12 months from the date of Balance sheet )
2.	Other Current Assets
	Loss on issue of Debentures					40,000
	(To the extent to be written off within 12 months from the date of Balance sheet )

Balance Sheet as at March 31, 2017
Particulars		Note No.	Amount (Rs)
II Assets
1. Non-Current Assets
a. Other Non-Current Assets			80,000
2. Current Assets
a. Other Current Assets			40,000
Total			1,20,000
NOTES TO ACCOUNTS
Note No.	Particulars					Amount (Rs)
1.	Other Non-current Assets
	Loss on issue of Debentures			1,20,000
	Less: Shown as Other Current Assets			40,000		80,000
	(To the extent to be written off after 12 months from the date of Balance sheet )
3	Other Current Assets
	Loss on issue of Debentures					40,000
	(To the extent to be written off within 12 months from the date of Balance sheet )