Read the following information carefully and answer the question. A Limited took over assets of ₹3,00,000 and liabilities of ₹10,000 from X and Co. Ltd. for an agreed purchase consideration of ₹2,70,000 to be satisfied by the issue of 10% debentures of ₹100 each at a premium of 20%. The company also took a loan of ₹10,00,000 from Punjab National Bank and issued 10% debentures of ₹12,00,000 of ₹100 each as collateral security. The rate of interest on the loan is 12% per annum.
Loan taken by A Ltd from Punjab National Bank will be classified under the following head:
Non-current Liabilities
A long-term loan from a bank is a Non-current Liability, as it is payable beyond 12 months.
Important Questions from Financial Statements of a Company
Arrange the following steps in the correct sequence of the life of a company:
(A) Commencement of Business
(B) Incorporation
(C) Promotion
(D) Floatation
Choose the correct answer from the options given below:
Salaries and wages are shown in the Statement of Profit and Loss under the head:
The amount of Capital Reserve is:
Shareholder’s fund will be:
Book value per share will be:
