PLEASE 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,!!
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........
thank you sir!!
CAclubindia
