Garima Ltd obtained a term loan from IDBI of 4 crore for a period of six years at the rate 11 % per annum the loan is secured by a motor Jor plant and machinery scenes IDBI was not satisfied with secretary of
| In the Books of Garima Ltd. Journal | ||||||
| Date | Particulars | L.F. | Amount Rs | Amount Rs | ||
| Date of obtaining the Loan | IDBI Bank A/c | Dr. |
| 4,00,00,000 |
| |
|
|
| To Bank Loan A/c |
|
|
| 4,00,00,000 |
|
| (Loan taken from IDBI Bank) |
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|
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|
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| Debenture Suspense | Dr. |
| 1,00,00,000 |
| |
|
|
| To 10% Debenture A/c |
|
|
| 1,00,00,000 |
|
| (1,00,000 debentures of Rs 100 each issued as a collateral security) |
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| Interest A/c | Dr. |
| 44,00,000 |
| |
|
|
| To Bank A/c |
|
|
| 44,00,000 |
|
| (Interest @ 11% p.a. provided on Loan) |
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| Profit and Loss A/c |
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| 44,00,000 |
| |
|
|
| To Interest A/c |
|
|
| 44,00,000 |
|
| (Interest on loan transferred to Profit and Loss Account) |
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| Garima Ltd. | ||
| Balance Sheet | ||
| Particulars | Note No. | Amount (Rs) |
| I. Equity and Liabilities |
|
|
| 1. Shareholders’ Funds |
|
|
| a. Reserves and Surplus | 1 | (44,00,000) |
| 2. Non-Current Liabilities |
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|
| a. Long-Term Borrowings | 2 | 4,00,00,000 |
| 3. Current Liabilities |
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| Total |
| 3,56,00,000 |
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|
|
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| II. Assets |
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| 1. Non-Current Assets |
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| 2. Current Assets |
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| a. Cash and Cash Equivalents | 3 | 3,56,00,000 |
| Total |
| 3,56,00,000 |
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|
NOTES TO ACCOUNTS
| Note No. | Particulars | Amount (Rs) | |
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|
|
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| 1 | Reserves and Surplus |
| |
|
| Profit and Loss A/c | (44,00,000) | |
|
|
|
| |
| 2 | Long-Term Borrowings |
| |
|
| Secured: |
| |
|
| Bank Loan (Secured by issue of 10% Debentures of Rs 1,00,00,000 as Collateral Security) |
4,00,00,000 | |
|
| 10% Debentures (Issued as Collateral Security to Bank against loan) |
1,00,00,000 |
|
|
| Less: Debenture Suspense Account | (1,00,00,000) | - |
|
|
| 4,00,00,000 | |
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|
|
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| 3 | Cash and Cash Equivalents |
| |
|
| Cash at Bank | 3,56,00,000 | |
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