On 1st April, 2018, Solar Power Ltd.issued 10,000,8% Debentures of 100 each at a discount of 5% redeemable
at a premium of 15% at the end of five years. All the debentures were subscribed and allotment was made.
The company had balance in Securities Premium Reserve of 80,000.
Prepare the Balance Sheet (extract) as at 31st March, 2019.
Answers
Answer:
In the books of Solar Power 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
(1,20,000)
2. Non-Current Liabilities
a. Long-term Borrowings
1
10,00,000
b. Other long-term Liabilities
2
1,50,000
II. Assets
Current Assets
Cash and Cash Equivalents
4
9,50,000
Notes to Accounts:
Note
No.
Particulars
Amount
(₹)
1. Long-term Borrowings
10,000, 8% Debentures of ₹100 each issued
10,00,000
2. Other long-term Liabilities
Premium on Redemption of Debentures
1,50,000
3. Reserves and Surplus
Securities Premium Reserve
80,000
Less: Loss on Issue of Debentures written off
(80,000)
Statement of Profit and Loss
–
Less: Loss on Issue of Debentures written off
(1,20,000)
(1,20,000)
4. Cash and Cash Equivalents
On 8% debentures @ ₹ 95 each (10,000 × 95)
9,50,000