Ricky Chadha (student) (121 Points)
29 December 2009PLEASE answer this question
In case a property is mortgaged to a debentureholder , value of property being equivalent to the amount of debentures held.
So,in this case property will be shon on Asset side under head Fixed Assets or not??
&
P&L A/c dr. balance is considered as a parrt of reserve and surplus? ?
Thanx in Advance,!!
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 29 December 2009
Yes, property is definately shown on assets side (with mentioning that its mortgaged).., as we are showing debentures on liabilities side... In simple terms, if u r showing credit balance of debentures, its inevitable to show debit balance of FA mortgaged against it on assets side
And yes, p&l balance too is part of reserve & surplus only........
CAclubindia
