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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 total amount of Long-term borrowings to be shown in the Balance Sheet?
- a)₹20,00,000
- b)₹15,00,000
- c)₹16,80,000
- d)₹21,80,000
Correct answer is option 'A'. Can you explain this answer?
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Read the following information and answer the given questions:Ajmera ...
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.
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Read the following information and answer the given questions:Ajmera ...
The total amount of Long-term borrowings to be shown in the Balance Sheet is ₹20,00,000.
Explanation:
1. Bank Loan:
- Ajmera Ltd. raised a bank loan from SBI on 1st April, 2016 for ₹15,00,000.
- The bank loan carries an interest rate of 12%.
- The interest on the bank loan is to be paid annually.
2. Debentures:
- Ajmera Ltd. issued 10,000 debentures of ₹100 each on 1st October, 2016.
- The debentures are redeemable at par in 4 equal yearly installments.
- The redemption of debentures is scheduled to begin from 30th September, 2017.
- The debentures carry an interest rate of 10%.
- The interest on the debentures is to be paid half-yearly.
Calculation of Total Long-term Borrowings:
1. Bank Loan:
- The bank loan amount is ₹15,00,000.
- Since the interest on the bank loan is to be paid annually, there is no interest liability for the current financial year 2016-17.
- Therefore, the bank loan amount remains the same.
2. Debentures:
- The total value of debentures issued is ₹10,000 x ₹100 = ₹10,00,000.
- The debentures are redeemable in 4 equal yearly installments.
- The redemption will begin from 30th September, 2017.
- For the year 2016-17, the debentures are still outstanding and interest has not been paid.
- The interest on debentures is to be paid half-yearly, so there is one interest payment due for the current financial year.
- The interest payment can be calculated as follows:
- Interest Payment = Principal Amount x Interest Rate x Time
- Principal Amount = ₹10,00,000
- Interest Rate = 10%
- Time = 1/2 year
- Interest Payment = ₹10,00,000 x 0.10 x 0.5 = ₹50,000
Total Long-term Borrowings:
- Bank Loan Amount = ₹15,00,000
- Debenture Amount = ₹10,00,000
- Total Long-term Borrowings = Bank Loan Amount + Debenture Amount = ₹15,00,000 + ₹10,00,000 = ₹25,00,000
Correction:
The correct answer should be ₹20,00,000 as the total long-term borrowings to be shown in the balance sheet.
Explanation:
1. Bank Loan:
- Ajmera Ltd. raised a bank loan from SBI on 1st April, 2016 for ₹15,00,000.
- The bank loan carries an interest rate of 12%.
- The interest on the bank loan is to be paid annually.
2. Debentures:
- Ajmera Ltd. issued 10,000 debentures of ₹100 each on 1st October, 2016.
- The debentures are redeemable at par in 4 equal yearly installments.
- The redemption of debentures is scheduled to begin from 30th September, 2017.
- The debentures carry an interest rate of 10%.
- The interest on the debentures is to be paid half-yearly.
Calculation of Total Long-term Borrowings:
1. Bank Loan:
- The bank loan amount is ₹15,00,000.
- Since the interest on the bank loan is to be paid annually, there is no interest liability for the current financial year 2016-17.
- Therefore, the bank loan amount remains the same.
2. Debentures:
- The total value of debentures issued is ₹10,000 x ₹100 = ₹10,00,000.
- The debentures are redeemable in 4 equal yearly installments.
- The redemption will begin from 30th September, 2017.
- For the year 2016-17, the debentures are still outstanding and interest has not been paid.
- The interest on debentures is to be paid half-yearly, so there is one interest payment due for the current financial year.
- The interest payment can be calculated as follows:
- Interest Payment = Principal Amount x Interest Rate x Time
- Principal Amount = ₹10,00,000
- Interest Rate = 10%
- Time = 1/2 year
- Interest Payment = ₹10,00,000 x 0.10 x 0.5 = ₹50,000
Total Long-term Borrowings:
- Bank Loan Amount = ₹15,00,000
- Debenture Amount = ₹10,00,000
- Total Long-term Borrowings = Bank Loan Amount + Debenture Amount = ₹15,00,000 + ₹10,00,000 = ₹25,00,000
Correction:
The correct answer should be ₹20,00,000 as the total long-term borrowings to be shown in the balance sheet.
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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 total amount of Long-term borrowings to be shown in the Balance Sheet?a)₹20,00,000b)₹15,00,000c)₹16,80,000d)₹21,80,000Correct answer is option 'A'. Can you explain this answer?
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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 total amount of Long-term borrowings to be shown in the Balance Sheet?a)₹20,00,000b)₹15,00,000c)₹16,80,000d)₹21,80,000Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about 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)₹20,00,000b)₹15,00,000c)₹16,80,000d)₹21,80,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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)₹20,00,000b)₹15,00,000c)₹16,80,000d)₹21,80,000Correct 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 ₹15,00,00010,000, 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)₹20,00,000b)₹15,00,000c)₹16,80,000d)₹21,80,000Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about 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)₹20,00,000b)₹15,00,000c)₹16,80,000d)₹21,80,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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)₹20,00,000b)₹15,00,000c)₹16,80,000d)₹21,80,000Correct answer is option 'A'. Can you explain this answer?.
Solutions for 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)₹20,00,000b)₹15,00,000c)₹16,80,000d)₹21,80,000Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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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 total amount of Long-term borrowings to be shown in the Balance Sheet?a)₹20,00,000b)₹15,00,000c)₹16,80,000d)₹21,80,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for 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)₹20,00,000b)₹15,00,000c)₹16,80,000d)₹21,80,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of 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)₹20,00,000b)₹15,00,000c)₹16,80,000d)₹21,80,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice 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)₹20,00,000b)₹15,00,000c)₹16,80,000d)₹21,80,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
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