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Read the following information and answer the given questions:Ajmera Ltd. raised the following loans in the year 2016-17:12% Bank Loan from SBI on 1st April, 2016 ₹15,00,00010,000, 10% Debentures of ₹100 each, redeemable at par in 4 equal yearly instalments, on 1 should be superscript October, 2016The terms of the loans were :(a) The Redemption of Debentures to begin from 30th September, 2017.(b) Interest on the Bank Loan to be paid annually but Interest on Debentures to be paid half yearly.The company had not paid the interest, both on the Bank Loan and on the Debentures till the Balance Sheet date.How will then 10% debentures be recorded in the Balance Sheet?- a)In the Long term borrowings
- b)In the Non-current assets
- c)In the Current liabilities
- d)In the equity share capital
Correct answer is option 'A'. Can you explain this answer?
Read the following information and answer the given questions:
Ajmera Ltd. raised the following loans in the year 2016-17:
12% Bank Loan from SBI on 1st April, 2016 ₹15,00,000
10,000, 10% Debentures of ₹100 each, redeemable at par in 4 equal yearly instalments, on 1 should be superscript October, 2016
The terms of the loans were :
(a) The Redemption of Debentures to begin from 30th September, 2017.
(b) Interest on the Bank Loan to be paid annually but Interest on Debentures to be paid half yearly.
The company had not paid the interest, both on the Bank Loan and on the Debentures till the Balance Sheet date.
How will then 10% debentures be recorded in the Balance Sheet?
a)
In the Long term borrowings
b)
In the Non-current assets
c)
In the Current liabilities
d)
In the equity share capital
|
Ishan Choudhury answered |
Debentures issued are shown under the heading of Non-current liabilities and subheading Long Term Borrowings.
Read the following information and answer the given questions:Ajmera Ltd. raised the following loans in the year 2016-17:12% Bank Loan from SBI on 1st April, 2016 ₹15,00,00010,000, 10% Debentures of ₹100 each, redeemable at par in 4 equal yearly instalments, on 1 should be superscript October, 2016The terms of the loans were :(a) The Redemption of Debentures to begin from 30th September, 2017.(b) Interest on the Bank Loan to be paid annually but Interest on Debentures to be paid half yearly.The company had not paid the interest, both on the Bank Loan and on the Debentures till the Balance Sheet date.What is the amount of debentures to be shown in the balance sheet?- a)₹10,00,000
- b)₹5,00,000
- c)₹0
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
Read the following information and answer the given questions:
Ajmera Ltd. raised the following loans in the year 2016-17:
12% Bank Loan from SBI on 1st April, 2016 ₹15,00,000
10,000, 10% Debentures of ₹100 each, redeemable at par in 4 equal yearly instalments, on 1 should be superscript October, 2016
The terms of the loans were :
(a) The Redemption of Debentures to begin from 30th September, 2017.
(b) Interest on the Bank Loan to be paid annually but Interest on Debentures to be paid half yearly.
The company had not paid the interest, both on the Bank Loan and on the Debentures till the Balance Sheet date.
What is the amount of debentures to be shown in the balance sheet?
a)
₹10,00,000
b)
₹5,00,000
c)
₹0
d)
None of the above
|
|
Ishan Choudhury answered |
Ajmera Ltd. raised finance through 10,000, 10% Debentures of ₹100 each.
Read the following Trial Balance and answer the questions that follow:Capital 4,00,000(40,000 Equity Shares ₹10 each)Bills Receivables 90,000 -16% Mortgage Loan - 1,70,000Stores and Spares 1,15,000 -Debtors 1,66,000 -Plant and Machinery 2,90,000 -Goodwill 40,000 -Provision for Tax - 26,000General Reserve - 1,30,000Cash in hand 18,000 -Calls in Arrears 2,000 -Marketable Securities 5,000 -Total 7,26,000 7,26,000On which head will the Bills receivable be shown in the balance sheet?- a)In the notes to accounts under Trade Receivables
- b)In the notes to accounts under intangible assets
- c)In the main Balance sheet under Current Assets
- d)In the main Balance Sheet under Non-Current Assets
Correct answer is option 'A'. Can you explain this answer?
Read the following Trial Balance and answer the questions that follow:
Capital 4,00,000
(40,000 Equity Shares ₹10 each)
Bills Receivables 90,000 -
16% Mortgage Loan - 1,70,000
Stores and Spares 1,15,000 -
Debtors 1,66,000 -
Plant and Machinery 2,90,000 -
Goodwill 40,000 -
Provision for Tax - 26,000
General Reserve - 1,30,000
Cash in hand 18,000 -
Calls in Arrears 2,000 -
Marketable Securities 5,000 -
Total 7,26,000 7,26,000
On which head will the Bills receivable be shown in the balance sheet?
a)
In the notes to accounts under Trade Receivables
b)
In the notes to accounts under intangible assets
c)
In the main Balance sheet under Current Assets
d)
In the main Balance Sheet under Non-Current Assets
|
Kiran Mehta answered |
Trade receivables are the total amounts owing to a company for goods or services it has sold, which are reflected in invoices that the company has issued to its clients, but has not yet received payments for. For an invoice amount to be added to trade receivables, full payment must be expected within one year.
Read the following information and answer the given questions:Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.Where will the Plant and Machinery be shown in the balance sheet?- a)In non-current asset
- b)In fixed assets
- c)In tangible assets
- d)All of the above
Correct answer is option 'D'. Can you explain this answer?
Read the following information and answer the given questions:
Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.
Where will the Plant and Machinery be shown in the balance sheet?
a)
In non-current asset
b)
In fixed assets
c)
In tangible assets
d)
All of the above
|
Mansi Mukherjee answered |
Plant and Machinery in Balance Sheet
Plant and Machinery will be shown in the balance sheet under various categories such as:
Non-current Assets
- Plant and Machinery fall under the category of non-current assets as they are long-term assets used in the production process and are not intended for resale. They are expected to provide economic benefits to the company for more than one accounting period.
Fixed Assets
- Plant and Machinery are considered fixed assets as they are tangible assets used by the company in its operations to generate revenue. They have a physical substance and are used for the production of goods or services.
Tangible Assets
- Plant and Machinery are tangible assets because they have a physical form and can be touched or seen. They are used in the production process of the company and contribute to its operational activities.
Therefore, Plant and Machinery will be shown in the balance sheet under all of the above categories - non-current assets, fixed assets, and tangible assets. These assets are essential for the company's operations and play a crucial role in its business activities.
Read the following information and answer the given questions:Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.How many shares did the Pinnacle Instruments Ltd. registered itself with?- a)5,000
- b)15,000
- c)20,000
- d)Can't be determined.
Correct answer is option 'C'. Can you explain this answer?
Read the following information and answer the given questions:
Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.
How many shares did the Pinnacle Instruments Ltd. registered itself with?
a)
5,000
b)
15,000
c)
20,000
d)
Can't be determined.
|
Aravind Kapoor answered |
Understanding Pinnacle Instruments Ltd. Share Capital
Pinnacle Instruments Ltd. registered a capital of ₹20,00,000 divided into Equity Shares of ₹100 each. To determine the total number of shares registered, we need to divide the total capital by the nominal value of each share.
Calculation of Total Shares
- Total Capital: ₹20,00,000
- Nominal Value per Share: ₹100
- Total Number of Shares:
- Total Capital / Nominal Value per Share
- = ₹20,00,000 / ₹100
- = 20,000 shares
Details of Share Issuance
- On 1st June 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals as consideration for plant and machinery.
- The remaining shares were issued to the public at par, which means the company offered these shares at their nominal value of ₹100.
Public Shares Issued
- After issuing 5,000 shares to Mila Herbals, the remaining shares available for public issuance would be:
- Total Shares - Shares Issued to Mila Herbals
- = 20,000 - 5,000
- = 15,000 shares
Conclusion
Thus, the total number of shares Pinnacle Instruments Ltd. registered itself with is 20,000 shares. The answer to the question is option C.
Pinnacle Instruments Ltd. registered a capital of ₹20,00,000 divided into Equity Shares of ₹100 each. To determine the total number of shares registered, we need to divide the total capital by the nominal value of each share.
Calculation of Total Shares
- Total Capital: ₹20,00,000
- Nominal Value per Share: ₹100
- Total Number of Shares:
- Total Capital / Nominal Value per Share
- = ₹20,00,000 / ₹100
- = 20,000 shares
Details of Share Issuance
- On 1st June 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals as consideration for plant and machinery.
- The remaining shares were issued to the public at par, which means the company offered these shares at their nominal value of ₹100.
Public Shares Issued
- After issuing 5,000 shares to Mila Herbals, the remaining shares available for public issuance would be:
- Total Shares - Shares Issued to Mila Herbals
- = 20,000 - 5,000
- = 15,000 shares
Conclusion
Thus, the total number of shares Pinnacle Instruments Ltd. registered itself with is 20,000 shares. The answer to the question is option C.
Read the following information and answer the given questions:Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.What will be the amount of Share Capital shown in the Balance Sheet?- a)₹20,00,000
- b)₹14,00,000
- c)₹15,00,000
- d)₹5,00,000
Correct answer is option 'B'. Can you explain this answer?
Read the following information and answer the given questions:
Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.
What will be the amount of Share Capital shown in the Balance Sheet?
a)
₹20,00,000
b)
₹14,00,000
c)
₹15,00,000
d)
₹5,00,000
|
Arun Yadav answered |
Subscribed Capital: Amount (₹)
5000 equity shares @ 5,00,000
₹100 issued against
purchase of Plant
and Machinery.
15,000 equity shares @ ₹60 9,00,000
Total 14,00,000
Read the following information and answer the given questions:Ajmera Ltd. raised the following loans in the year 2016-17:12% Bank Loan from SBI on 1st April, 2016 ₹15,00,00010,000, 10% Debentures of ₹100 each, redeemable at par in 4 equal yearly instalments, on 1 should be superscript October, 2016The terms of the loans were :(a) The Redemption of Debentures to begin from 30th September, 2017.(b) Interest on the Bank Loan to be paid annually but Interest on Debentures to be paid half yearly.The company had not paid the interest, both on the Bank Loan and on the Debentures till the Balance Sheet date.Under which head will the long term borrowings come?- a)Current Liabilities
- b)Reserves and Surplus
- c)Non-current liabilities
- d)Notes to Accounts
Correct answer is option 'C'. Can you explain this answer?
Read the following information and answer the given questions:
Ajmera Ltd. raised the following loans in the year 2016-17:
12% Bank Loan from SBI on 1st April, 2016 ₹15,00,000
10,000, 10% Debentures of ₹100 each, redeemable at par in 4 equal yearly instalments, on 1 should be superscript October, 2016
The terms of the loans were :
(a) The Redemption of Debentures to begin from 30th September, 2017.
(b) Interest on the Bank Loan to be paid annually but Interest on Debentures to be paid half yearly.
The company had not paid the interest, both on the Bank Loan and on the Debentures till the Balance Sheet date.
Under which head will the long term borrowings come?
a)
Current Liabilities
b)
Reserves and Surplus
c)
Non-current liabilities
d)
Notes to Accounts
|
|
Kiran Mehta answered |
Any liability that needs to be fulfilled not recently is called non-current liability.
Read the following Trial Balance and answer the questions that follow:Capital 4,00,000(40,000 Equity Shares ₹10 each)Bills Receivables 90,000 -16% Mortgage Loan - 1,70,000Stores and Spares 1,15,000 -Debtors 1,66,000 -Plant and Machinery 2,90,000 -Goodwill 40,000 -Provision for Tax - 26,000General Reserve - 1,30,000Cash in hand 18,000 -Calls in Arrears 2,000 -Marketable Securities 5,000 -Total 7,26,000 7,26,000What is the amount of Share Capital to be shown in the Balance Sheet?- a)₹3,98,000
- b)₹4,00,000
- c)₹2,000
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
Read the following Trial Balance and answer the questions that follow:
Capital 4,00,000
(40,000 Equity Shares ₹10 each)
Bills Receivables 90,000 -
16% Mortgage Loan - 1,70,000
Stores and Spares 1,15,000 -
Debtors 1,66,000 -
Plant and Machinery 2,90,000 -
Goodwill 40,000 -
Provision for Tax - 26,000
General Reserve - 1,30,000
Cash in hand 18,000 -
Calls in Arrears 2,000 -
Marketable Securities 5,000 -
Total 7,26,000 7,26,000
What is the amount of Share Capital to be shown in the Balance Sheet?
a)
₹3,98,000
b)
₹4,00,000
c)
₹2,000
d)
None of the above
|
Neha Sharma answered |
₹4,00,000 – ₹2,000 = ₹3,98,000
Read the following Trial Balance and answer the questions that follow:Capital 4,00,000(40,000 Equity Shares ₹10 each)Bills Receivables 90,000 -16% Mortgage Loan - 1,70,000Stores and Spares 1,15,000 -Debtors 1,66,000 -Plant and Machinery 2,90,000 -Goodwill 40,000 -Provision for Tax - 26,000General Reserve - 1,30,000Cash in hand 18,000 -Calls in Arrears 2,000 -Marketable Securities 5,000 -Total 7,26,000 7,26,000What is the total amount of Fixed Assets as shown in the balance sheet?- a)₹2,90,000
- b)₹40,000
- c)₹3,30,000
- d)₹2,50,000
Correct answer is option 'C'. Can you explain this answer?
Read the following Trial Balance and answer the questions that follow:
Capital 4,00,000
(40,000 Equity Shares ₹10 each)
Bills Receivables 90,000 -
16% Mortgage Loan - 1,70,000
Stores and Spares 1,15,000 -
Debtors 1,66,000 -
Plant and Machinery 2,90,000 -
Goodwill 40,000 -
Provision for Tax - 26,000
General Reserve - 1,30,000
Cash in hand 18,000 -
Calls in Arrears 2,000 -
Marketable Securities 5,000 -
Total 7,26,000 7,26,000
What is the total amount of Fixed Assets as shown in the balance sheet?
a)
₹2,90,000
b)
₹40,000
c)
₹3,30,000
d)
₹2,50,000
|
Vikas Kapoor answered |
₹2,90,000 + ₹40,000 = ₹3,30,000
Read the following information and answer the given questions:Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.How many shares are issued as against the purchase of plant and machinery?- a)5,000
- b)15,000
- c)20,000
- d)Cannot be determined from the given data.
Correct answer is option 'A'. Can you explain this answer?
Read the following information and answer the given questions:
Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.
How many shares are issued as against the purchase of plant and machinery?
a)
5,000
b)
15,000
c)
20,000
d)
Cannot be determined from the given data.
|
|
Amita Das answered |
5,000 shares are issued as against the purchase of plant and machinery.
Read the following Trial Balance and answer the questions that follow:Capital 4,00,000(40,000 Equity Shares ₹10 each)Bills Receivables 90,000 -16% Mortgage Loan - 1,70,000Stores and Spares 1,15,000 -Debtors 1,66,000 -Plant and Machinery 2,90,000 -Goodwill 40,000 -Provision for Tax - 26,000General Reserve - 1,30,000Cash in hand 18,000 -Calls in Arrears 2,000 -Marketable Securities 5,000 -Total 7,26,000 7,26,000What is the total Equity and Liabilities of the Balance Sheet?- a)₹7,24,000
- b)₹7,20,000
- c)₹6,45,000
- d)₹7,45,000
Correct answer is option 'A'. Can you explain this answer?
Read the following Trial Balance and answer the questions that follow:
Capital 4,00,000
(40,000 Equity Shares ₹10 each)
Bills Receivables 90,000 -
16% Mortgage Loan - 1,70,000
Stores and Spares 1,15,000 -
Debtors 1,66,000 -
Plant and Machinery 2,90,000 -
Goodwill 40,000 -
Provision for Tax - 26,000
General Reserve - 1,30,000
Cash in hand 18,000 -
Calls in Arrears 2,000 -
Marketable Securities 5,000 -
Total 7,26,000 7,26,000
What is the total Equity and Liabilities of the Balance Sheet?
a)
₹7,24,000
b)
₹7,20,000
c)
₹6,45,000
d)
₹7,45,000
|
|
Kiran Mehta answered |
Total in the Equity side = ₹3,98,000 + ₹1,30,000 + ₹1,70,000 + ₹26,000 = ₹7,24,000
Read the following information and answer the given questions:Ajmera Ltd. raised the following loans in the year 2016-17:12% Bank Loan from SBI on 1st April, 2016 ₹15,00,00010,000, 10% Debentures of ₹100 each, redeemable at par in 4 equal yearly instalments, on 1 should be superscript October, 2016The terms of the loans were :(a) The Redemption of Debentures to begin from 30th September, 2017.(b) Interest on the Bank Loan to be paid annually but Interest on Debentures to be paid half yearly.The company had not paid the interest, both on the Bank Loan and on the Debentures till the Balance Sheet date.What is the total amount of Long-term borrowings to be shown in the Balance Sheet?- a)₹22,50,000
- b)₹15,00,000
- c)₹16,80,000
- d)₹21,80,000
Correct answer is option 'A'. Can you explain this answer?
Read the following information and answer the given questions:
Ajmera Ltd. raised the following loans in the year 2016-17:
12% Bank Loan from SBI on 1st April, 2016 ₹15,00,000
10,000, 10% Debentures of ₹100 each, redeemable at par in 4 equal yearly instalments, on 1 should be superscript October, 2016
The terms of the loans were :
(a) The Redemption of Debentures to begin from 30th September, 2017.
(b) Interest on the Bank Loan to be paid annually but Interest on Debentures to be paid half yearly.
The company had not paid the interest, both on the Bank Loan and on the Debentures till the Balance Sheet date.
What is the total amount of Long-term borrowings to be shown in the Balance Sheet?
a)
₹22,50,000
b)
₹15,00,000
c)
₹16,80,000
d)
₹21,80,000
|
Qudrat Chauhan answered |
Long-term borrowing consists of a long application process where repayments are made for several years in order to pay off the loan. The type of loan that you borrow affects the business considering the amount of interest that you pay over the specified period of time.
Ans: ₹22,50,000
Working (as at 31-03-2017):
- 12% Bank Loan (SBI): ₹15,00,000 → treated as long-term (no current instalment specified).
- 10% Debentures ₹10,00,000, redeemable in 4 equal yearly instalments starting 30-09-2017 → current portion = ₹10,00,000 ÷ 4 = ₹2,50,000 (within 12 months), non-current portion = ₹7,50,000.
Total Long-term Borrowings = ₹15,00,000 + ₹7,50,000 = ₹22,50,000.
(Note: Unpaid interest on the bank loan and debentures is shown under current liabilities, not added to borrowings.)
(Note: Unpaid interest on the bank loan and debentures is shown under current liabilities, not added to borrowings.)
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