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Car limited to a loan of rupees 60000 from a bank and deposited 700 8% deventure of rupees hundred each as collateral securities company again took a loan of rupees 40000 after 2 month from a bank and deposited 500 8% debenture of rupees hundred each as collateral security pass the necessary journal entries and prepare balance sheet in the book of a limited company? solve the problems?
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Car limited to a loan of rupees 60000 from a bank and deposited 700 8%...
Journal Entries and Balance Sheet of a Limited Company
Journal Entries:
1. When the company takes a loan of rupees 60000 from a bank and deposited 700 8% debentures of rupees hundred each as collateral securities:
Bank A/C (Debit) - Rs. 60000
To Loan A/C (Credit) - Rs. 60000
Collateral Security A/C (Debit) - Rs. 70000
To Bank A/C (Credit) - Rs. 70000
2. When the company takes a loan of rupees 40000 after 2 months from a bank and deposited 500 8% debentures of rupees hundred each as collateral securities:
Bank A/C (Debit) - Rs. 40000
To Loan A/C (Credit) - Rs. 40000
Collateral Security A/C (Debit) - Rs. 50000
To Bank A/C (Credit) - Rs. 50000
Balance Sheet:
Liabilities | Amount (Rs.) | Assets | Amount (Rs.)
--- | --- | --- | ---
Loan | 100000 | Cash | 10000
Debenture | 120000 | Collateral Security | 120000
Capital | 100000 | Loan | 100000
Total | 320000 | Total | 320000
Explanation:
A limited company had taken a loan of rupees 60000 from a bank and deposited 700 8% debentures of rupees hundred each as collateral securities. Later, the company again took a loan of rupees 40000 from a bank and deposited 500 8% debentures of rupees hundred each as collateral securities.
The journal entries for both these transactions have been mentioned above.
Based on these transactions, the balance sheet of the company has been prepared. The liabilities of the company include loans and debentures. The assets of the company include cash and collateral security. The total liabilities and assets are equal to rupees 320000.
Journal Entries:
1. When the company takes a loan of rupees 60000 from a bank and deposited 700 8% debentures of rupees hundred each as collateral securities:
Bank A/C (Debit) - Rs. 60000
To Loan A/C (Credit) - Rs. 60000
Collateral Security A/C (Debit) - Rs. 70000
To Bank A/C (Credit) - Rs. 70000
2. When the company takes a loan of rupees 40000 after 2 months from a bank and deposited 500 8% debentures of rupees hundred each as collateral securities:
Bank A/C (Debit) - Rs. 40000
To Loan A/C (Credit) - Rs. 40000
Collateral Security A/C (Debit) - Rs. 50000
To Bank A/C (Credit) - Rs. 50000
Balance Sheet:
Liabilities | Amount (Rs.) | Assets | Amount (Rs.)
--- | --- | --- | ---
Loan | 100000 | Cash | 10000
Debenture | 120000 | Collateral Security | 120000
Capital | 100000 | Loan | 100000
Total | 320000 | Total | 320000
Explanation:
A limited company had taken a loan of rupees 60000 from a bank and deposited 700 8% debentures of rupees hundred each as collateral securities. Later, the company again took a loan of rupees 40000 from a bank and deposited 500 8% debentures of rupees hundred each as collateral securities.
The journal entries for both these transactions have been mentioned above.
Based on these transactions, the balance sheet of the company has been prepared. The liabilities of the company include loans and debentures. The assets of the company include cash and collateral security. The total liabilities and assets are equal to rupees 320000.
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Car limited to a loan of rupees 60000 from a bank and deposited 700 8% deventure of rupees hundred each as collateral securities company again took a loan of rupees 40000 after 2 month from a bank and deposited 500 8% debenture of rupees hundred each as collateral security pass the necessary journal entries and prepare balance sheet in the book of a limited company? solve the problems?
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Car limited to a loan of rupees 60000 from a bank and deposited 700 8% deventure of rupees hundred each as collateral securities company again took a loan of rupees 40000 after 2 month from a bank and deposited 500 8% debenture of rupees hundred each as collateral security pass the necessary journal entries and prepare balance sheet in the book of a limited company? solve the problems? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Car limited to a loan of rupees 60000 from a bank and deposited 700 8% deventure of rupees hundred each as collateral securities company again took a loan of rupees 40000 after 2 month from a bank and deposited 500 8% debenture of rupees hundred each as collateral security pass the necessary journal entries and prepare balance sheet in the book of a limited company? solve the problems? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Car limited to a loan of rupees 60000 from a bank and deposited 700 8% deventure of rupees hundred each as collateral securities company again took a loan of rupees 40000 after 2 month from a bank and deposited 500 8% debenture of rupees hundred each as collateral security pass the necessary journal entries and prepare balance sheet in the book of a limited company? solve the problems?.
Car limited to a loan of rupees 60000 from a bank and deposited 700 8% deventure of rupees hundred each as collateral securities company again took a loan of rupees 40000 after 2 month from a bank and deposited 500 8% debenture of rupees hundred each as collateral security pass the necessary journal entries and prepare balance sheet in the book of a limited company? solve the problems? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Car limited to a loan of rupees 60000 from a bank and deposited 700 8% deventure of rupees hundred each as collateral securities company again took a loan of rupees 40000 after 2 month from a bank and deposited 500 8% debenture of rupees hundred each as collateral security pass the necessary journal entries and prepare balance sheet in the book of a limited company? solve the problems? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Car limited to a loan of rupees 60000 from a bank and deposited 700 8% deventure of rupees hundred each as collateral securities company again took a loan of rupees 40000 after 2 month from a bank and deposited 500 8% debenture of rupees hundred each as collateral security pass the necessary journal entries and prepare balance sheet in the book of a limited company? solve the problems?.
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Car limited to a loan of rupees 60000 from a bank and deposited 700 8% deventure of rupees hundred each as collateral securities company again took a loan of rupees 40000 after 2 month from a bank and deposited 500 8% debenture of rupees hundred each as collateral security pass the necessary journal entries and prepare balance sheet in the book of a limited company? solve the problems?, a detailed solution for Car limited to a loan of rupees 60000 from a bank and deposited 700 8% deventure of rupees hundred each as collateral securities company again took a loan of rupees 40000 after 2 month from a bank and deposited 500 8% debenture of rupees hundred each as collateral security pass the necessary journal entries and prepare balance sheet in the book of a limited company? solve the problems? has been provided alongside types of Car limited to a loan of rupees 60000 from a bank and deposited 700 8% deventure of rupees hundred each as collateral securities company again took a loan of rupees 40000 after 2 month from a bank and deposited 500 8% debenture of rupees hundred each as collateral security pass the necessary journal entries and prepare balance sheet in the book of a limited company? solve the problems? theory, EduRev gives you an
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