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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.
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?
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Verified Answer
Read the following information and answer the given questions:Ajmera ...
Debentures issued are shown under the heading of Non-current liabilities and subheading Long Term Borrowings.
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Read the following information and answer the given questions:Ajmera ...
Explanation:
The 10% debentures will be recorded in the balance sheet under the category of Long-term Borrowings.
Reasoning:
The debentures issued by Ajmera Ltd. are redeemable at par in 4 equal yearly installments, with the redemption starting from 30th September, 2017. This indicates that the debentures have a maturity period of more than one year, making them a long-term liability for the company.
Balance Sheet Classification:
In a balance sheet, liabilities are classified into current liabilities and non-current liabilities. Current liabilities are those that are expected to be settled within one year, while non-current liabilities are those that are expected to be settled beyond one year.
The 10% debentures issued by Ajmera Ltd. are redeemable in 4 equal yearly installments, with the first installment due on 30th September, 2017. As per the terms mentioned, it can be inferred that the debentures have a maturity period of more than one year. Therefore, they will be classified as non-current liabilities in the balance sheet.
Conclusion:
Based on the information provided, it can be concluded that the 10% debentures will be recorded in the balance sheet under the category of Long-term Borrowings.
The 10% debentures will be recorded in the balance sheet under the category of Long-term Borrowings.
Reasoning:
The debentures issued by Ajmera Ltd. are redeemable at par in 4 equal yearly installments, with the redemption starting from 30th September, 2017. This indicates that the debentures have a maturity period of more than one year, making them a long-term liability for the company.
Balance Sheet Classification:
In a balance sheet, liabilities are classified into current liabilities and non-current liabilities. Current liabilities are those that are expected to be settled within one year, while non-current liabilities are those that are expected to be settled beyond one year.
The 10% debentures issued by Ajmera Ltd. are redeemable in 4 equal yearly installments, with the first installment due on 30th September, 2017. As per the terms mentioned, it can be inferred that the debentures have a maturity period of more than one year. Therefore, they will be classified as non-current liabilities in the balance sheet.
Conclusion:
Based on the information provided, it can be concluded that the 10% debentures will be recorded in the balance sheet under the category of Long-term Borrowings.
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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 borrowingsb)In the Non-current assetsc)In the Current liabilitiesd)In the equity share capitalCorrect 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.How will then 10% debentures be recorded in the Balance Sheet?a)In the Long term borrowingsb)In the Non-current assetsc)In the Current liabilitiesd)In the equity share capitalCorrect 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.How will then 10% debentures be recorded in the Balance Sheet?a)In the Long term borrowingsb)In the Non-current assetsc)In the Current liabilitiesd)In the equity share capitalCorrect 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.How will then 10% debentures be recorded in the Balance Sheet?a)In the Long term borrowingsb)In the Non-current assetsc)In the Current liabilitiesd)In the equity share capitalCorrect 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.How will then 10% debentures be recorded in the Balance Sheet?a)In the Long term borrowingsb)In the Non-current assetsc)In the Current liabilitiesd)In the equity share capitalCorrect 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.How will then 10% debentures be recorded in the Balance Sheet?a)In the Long term borrowingsb)In the Non-current assetsc)In the Current liabilitiesd)In the equity share capitalCorrect 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.How will then 10% debentures be recorded in the Balance Sheet?a)In the Long term borrowingsb)In the Non-current assetsc)In the Current liabilitiesd)In the equity share capitalCorrect answer is option 'A'. Can you explain this answer?.
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