On 1st May, 2016, Goodluck Ltd. issued 16,000, 9% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% redeemable after five years. All the debentures were subscribed and allotment was made. Discount on issue of Debentures is to be written off over the life of the debentures.
Prepare the Balance Sheet (extract) as at 31st March, 2017 showing Discount on issue of Debentures.
Answers
The Balance Sheet (extract) as at 31st March, 2017 showing Discount on issue of Debentures are calculated and prepared below:
Explanation:
Given,
On 1st May, 2016, Goodluck Ltd. issued 16,000, 9% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% redeemable after five years.
All the debentures were subscribed and allotment was made.
Discount on issue of Debentures is to be written off over the life of the debentures.
Calculation of Other Non-Current Assets:
Loss on issue of Debentures - Rs. 1,28,000
Less: Disclosed as Other Current Assets - Rs. 32,000
Other Non-Current Assets = Loss on issue of Debentures - Disclosed
= Rs. 1,28,000 - Rs. 32,000
= Rs. 96,000
Calculation of Other Current Assets :
Loss on issue of Debentures - Rs. 32,000
The Balance Sheet (extract) as at 31st March, 2017 showing Discount on issue of Debentures are calculated and prepared below:
