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.
Answers
The Balance Sheet (extract) as at 31st March, 2016 and 31st March, 2017 showing Loss on issue of Debentures are calculated and prepared below:
Explanation:
Given,
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.
Calculation as on March 31,2016
Calculation of Other Non-Current Assets
Loss on issue of Debentures - Rs. 1,60,000
Less: Disclosed as Other Current Assets - Rs. 40,000
Other Non-Current Assets
= Rs. 1,60,000 - Rs. 40,000
= Rs. 1,20,000
Calculation of Other Current Assets
Loss on issue of Debentures - Rs. 40,000
Calculation as on March 31,2017
Calculation of Other Non-Current Assets
Loss on issue of Debentures - Rs. 1,20,000
Less: Shown as Other Current Assets - Rs. 40,000
Other Non-Current Assets
= Rs. 1,20,000 - Rs. 40,000
= Rs. 80,000
Calculation of Other Current Assets
Loss on issue of Debentures - Rs. 40,000
The Balance Sheet (extract) as at 31st March, 2016 and 31st March, 2017 showing Loss on issue of Debentures are calculated and prepared below:
