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Question
Hero Ltd. has raised following long-term loans on 1st April, 2018:
| 10,000; 10% Debentures of ₹ 100 each redeemable in four equal yearly | ₹ |
| installments beginning 1st July, 2019 | 10,00,000 |
| 11% Bank Loan from SBI repayable after 5 years | 20,00,000 |
| Interest on Debentures and Bank Loan has not yet been paid. |
How will be the above items shown in the Balance Sheet of the company as at 31st March, 2019?
Solution
Extract of Balance Sheet
as at March 31, 2019
|
Particulars |
Note No. |
Amount (₹) |
||
|
2. Non-Current Liabilities |
|
|
||
|
Long-term Borrowings |
|
|
||
|
11% Loan from SBI |
20,00,000 |
|
27,50,000 |
|
|
7,500, 10% Debentures of Rs 100 each |
7,50,000 |
|
||
|
3. Current Liabilities |
|
|
||
|
Other Current Liabilities |
|
|
||
|
Current Maturity of Long-term Debts (2,500 |
2,50,000 |
|
5,70,000 |
|
|
Interest accrued and Due on Debentures |
1,00,000 |
|
||
|
Interest accrued and Due on Loan |
2,20,000 |
|
||
|
Total |
|
33,20,000 |
||
APPEARS IN
RELATED QUESTIONS
| Group 'A' | Group 'B' | ||
| 1 | Financial Management | a | Distribution of profit |
| 2 | Retained profit | b | Deposits less than Rs. 20,000 |
| 3 | Debenture trustees | c | Capitalisation of profit |
| 4 | Small depositors | d | 1996 |
| 5 |
Depository Act |
e | Management of business funds |
| f | Borrowed capital | ||
| g | Protect interest of debentures holders | ||
| h | Management of business activities | ||
| i | Deposits less than Rs. 25,000 | ||
| j | 1956 |
What are the main objectives of financial management? Briefly explain.
Under which heads the following items are shown in the Balance Sheet of a company:
(i) Calls-in-Arrears
(ii) Commission Received in Advance
(iii) Debentures
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(vi) Forfeited Shares Account?
Under which heads the following are shown in a company's Balance Sheet:
(i) Public Deposits
(ii) Office Furniture
(iii) Prepaid Rent
(iv) Outstanding Salaries
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(vi) Interest Accrued on Investment?
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(i) Provision for Employee Benefits.
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Calculate Cost of Materials Consumed from the following:
Opening Inventory of Materials ₹3,50,000; Finished Goods ₹75,000; Stock-in-Trade ₹2,00,000; Closing Inventory of: Materials ₹3,25,000; Finished Goods ₹85,000; Stock-in-Trade ₹1,50,000; Purchases during the year: Raw Material ₹17,50,000; Stock-in-Trade ₹9,00,000.
From the following information, calculate Change in Inventory of Work-in-Progress: Opening and Closing Work-in-Progress ₹1,00,000 and ₹1,15,000 respectively.
Out of the Following, identify the items that are shown in the Note to Accounts on Finance Costs:
(i) Interest paid on Borrowing from prince Finance Ltd.;
(ii) Interest paid on Term Loan to Bank;
(iii) Interest paid on Public Deposits;
(iv) Loss on Issue of Debentures Written off; and
(v) Bank Charges.
Under which line item (major head) of the Statement of Profit and Loss of a financial company will the following be shown:
(i) Interest on Loans Given:
(ii) Gain (Profit) on Sale of Securities;
(iii) Loss on Sale of Fixed Assets;
(iv) Interest paid on Deposits;
(v) Depreciation on Computers;
(vi) Goodwill Written off;
(vii) Commission paid for Deposit Mobilisation; and
(viii) Repairs Expenses?
What is the role and function of Financial Management?
What are the objectives of financial statement?
Other things remaining the same, an increase in the tax rate on corporate profit will :
What are the objectives of financial management?
'S' Limited is manufacturing steel at its plant in India. It is enjoying a buoyant demand for its products as economic growth is about 7% - 8% and the demand for steel is growing. It is planning to set up a new steel plant to cash on the increased demand. It is estimated that it will require about Rs 5000 crores to set up and about Rs 500 crores of working capital to start the new plant.
Which of the following is the role and objectives of financial management for this company.
Which of the following statements is false regarding financial management?
The foremost objective of financial management is:
