Question

On 1st June, 2017, 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.

Prepare the Balance Sheet (extract) as at 31st March, 2018.

Answer 1

In the books of R Energy Ltd. An Extract of Balance Sheet As at 31st March, 2018
Particulars	Note No.	Amount (₹)
I. EQUITIES AND LIABILITIES
1. Shareholders’ Funds
Reserves and Surplus	3	(2,00,000)
2. Non-Current Liabilities
a. Long-term Borrowings	1	10,00,000
b. Other long-term Liabilities	2	1,00,000
Total		9,00,000
II. Assets
Current Assets
Cash and Cash Equivalents	4	9,00,000
Total		9,00,000

Notes to Accounts:
Note No.	Particulars		Amount (₹)
1.	Long-term Borrowings
	10,000, 7% Debentures of ₹100 each issued at		10,00,000
2.	Other long-term Liabilities
	Premium on Redemption of Debentures		1,00,000
3.	Reserves and Surplus
	Statement of Profit & Loss
	Less: Loss on Issue of Debentures written off	(2,00,000)	(2,00,000)
4.	Cash and Cash Equivalents
	On 7% debentures @ ₹ 90 each (10,000 × 90)		9,00,000