Am I Tripping?
As far as I know, Debentures issued as collateral security are NEVER shown in the balance sheet. Either ommited completely or either first the 6,00,000 amt is added to the Debenture head and a deduction named debenture suspense is made from it leaving the net amt under the Debenture head to be NIL. Is this a mistake or am i missing smth?
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Comments (7)
they are disclosed under notes to accounts but as question mentions balance sheet, i think it should be NIL
but anyway isn't any option so going with 6 lac is better
whats the source of the question?
It's from accountancy mock 1
hey check ncert, in that check first method
according to that ans is 6 lacs
It says that the LOAN will be shown in the liability side but for the debentures it will only be shown in the notes to accounts without having any effect on the balance sheet.... But i guess if NIL is not given then 6,00,000 is the next best alternative
bro tommorow i have my accountancy exam lol 😭🥀
and i think question is poorly framed, lets conclude everything possible
loan take - 5 lacs
shown in liabilities (long term borrowings) under balance sheet
debentures issued as collateral - 6 lacs
shown in notes to accounts (contingent liablity)
answer to that question is - NIL
correct?
Yeah, good luck g
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it says debentures and only mentions values SO IT SHOULD BE NIL 🥲