Debentures issued as collateral security do not create a separate liability. Only the actual loan of Rs. 20,00,000 is shown as long-term borrowing on the liabilities side, with the debentures issued as collateral disclosed by way of a note. Hence the amount shown is Rs. 20,00,000.
On 1st July/22, Centaur Ltd. issued Rs. 25,00,000 8% debentures of Rs. 100 each as collateral security to first Level Bank against loan dues of Rs.…
CUET UG 2023 — Accountancy Company Accounts
2023mcqmedium
On 1st July/22, Centaur Ltd. issued Rs. 25,00,000 8% debentures of Rs. 100 each as collateral security to first Level Bank against loan dues of Rs. 20,00,000. How much amount will be shown in the Balance sheet?
Official previous-year question
Held on 29 May 2023 · Verified 13 Jul 2026.
Options
- A
Rs. 25,00,000
- B
Rs. 45,00,000
- C
Rs. 20,00,000
- D
Rs. 70,00,000
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