Question :
Nirula's Ltd. has 10,000; 9% Debentures of Rs. 100 each redeemable on 31st March, 2026. The period of Operating Cycle is 24 months. In the Balance Sheet as at 31st March, 2020, such debentures will be shown as----------------- under the head --------------------------
Option 1: Long term borrowing and non-current liabilities
Option 2: Short term borrowing and current liabilities
Option 3: Trade payable
Option 4: None of the above
Correct Answer: Long term borrowing and non-current liabilities
Solution : Answer = Long-term borrowing and non-current liabilities
In the Balance Sheet as of March 31, 2020, Nirula's Ltd. will classify its 9% Debentures due for redemption on March 31, 2026, as "Long-term borrowing" and "Non-current liabilities." This categorization reflects the long-term nature of the debentures and their maturity beyond the company's operating cycle. Hence, the correct option is 1.
If 10,000, 9% Debentures of Rs. 100 each are issued on 1st April, 2019 redeemable on 31st January, 2021. These debentures will be shown as ------------- under the head ---------- in the Balance Sheet as at 31st March, 2020.
Question : ---------------------- are the liabilities payable within 12 months from the date of the Balance Sheet or within the period of the Operating Cycle.
Question : Right Retail Ltd., an unlisted (Non-NBFC/HFC) company, had 10,000, 12% Debentures of Rs. 100 each outstanding for redemption as follows: On 31st March 2019 2,000 Debentures, On 31st March 2020 3,000 Debentures, On 31st March, 2021 Balance
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile