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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 ₹15,00,000
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
Correct answer is option 'A'. Can you explain this answer?
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Read the following information and answer the given questions:Ajmera ...
Ajmera Ltd. raised finance through 10,000, 10% Debentures of ₹100 each.
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Read the following information and answer the given questions:Ajmera ...
Calculation of amount of debentures:

Total amount raised by debentures= 10,000 x 100 = ₹10,00,000

Since the debentures are redeemable in 4 equal yearly installments, the amount of debentures to be shown in the balance sheet will be the outstanding amount after deducting the amount of installment paid.

Since the redemption of debentures starts from 30th September 2017, only one installment of the debentures would have been paid till the balance sheet date. Therefore, the outstanding amount of debentures will be:

Outstanding amount of debentures= ₹10,00,000 - ₹2,50,000 (One installment of ₹2,50,000 would have been paid till the balance sheet date)= ₹7,50,000

Therefore, the amount of debentures to be shown in the balance sheet is ₹7,50,000.

Answer: Option A- ₹10,00,000
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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.What is the amount of debentures to be shown in the balance sheet?a)₹10,00,000b)₹5,00,000c)₹0d)None of the aboveCorrect answer is option 'A'. Can you explain this answer?
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