Underwriting commission paid on issue of debentures will appear in

Open in App

Solution

(a) Debit side of Profit and Loss Account
(b) Credit side of Profit and Loss Account
(c) Assets side of Balance sheet
(d) Liabilities side of Balance sheet
Correct option: (c) Assets side of Balance sheet
Underwriting commission paid on issue of debentures will appear in assets side of Balance sheet.

Suggest Corrections

Similar questions

Name the head under which ‘discount on issue of debentures’ appears in the Balance Sheet of a company.

(a) Cash Sale of Goods	(b) Cash Received against Revenue from Services rendered
(c) Cash Purchase of Goods	(d) Cash Paid against Services Taken
(e) Patents Purchased	(f) Marketable Securities
(g) Bank Overdraft	(h) Proceeds from Issue of Debentures
(i) Purchase of Shares	(j) Repayment of Long-term Loan
(k) Commission Received	(l) Redemption of Debentures
(m) Interest on Debentures	(n) Interest on Investments
(o) Income Tax Paid	(p) Income Tax Paid on Gain of Sale of Asset
(q) Cash Received from Debtors	(r) Cash Paid to Creditors.

^{s t}

^{s t}

Particulars	Debit (Rs.)	Credit (Rs.)
Equity Share Capital ( $5, 000$ share of $R s . 100$ each fully paid)		$5, 00, 000$
Fixed Assets	$7, 30, 000$
Reserves Surplus		$2, 00, 000$
Inventories	$50, 000$
Cash and Bank Balances	$1, 70, 000$
Creditors		$40, 000$
Bill Payable		$20, 000$
Underwriting Commission on issue of shares	$10, 000$
$5 %$ Debentures ( $\frac{1}{5}$ of the Debentures to be redeemed on 31 $^{s t}$ March, 2018)		$2, 00, 000$
Proposed Dividend		$12, 000$
Interest accrued and due on $5 %$ Debentures		$8, 000$
Trade Receivables	$20, 000$
TOTAL	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 9, 80, 000 - -------- -$	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 9, 80, 000 - -------- -$

^{s t}

Name the head under which 'Discount on Issue of Debentures' appears in the Balance Sheet of a company.

Join BYJU'S Learning Program