State whether the following statements are True or False : (i) 1,000, 10% Debentures of Rs 100 each out of 10,000, 10% Debentures are redeemable within the 12 months of the date fo Balance Sheet. They will be shown in the Current Liabilities as Short-term Borrowings in the Balance Sheet. (ii) Dividend is paid on Paid-up Capital. (iii) Debentures are shown under the head Other Long-term Liabilities in the Balance Sheet. (iv) Share Application Money Pending Allotment is shown as a line item. (v) Loose Tools and Stores and Spares are shown as inventories in the Balance Sheet. (vi) Bills Receivable is shown as Trade Receivables in the Balance Sheet. (vii) Reserve Capital is part of Share Capital that a Company resolves not to call at any time it desires.

State whether the following statements are True or False : (i) 1,000,

1.	State whether the following statements are True or False : (i) 1,000, 10% Debentures of Rs 100 each out of 10,000, 10% Debentures are redeemable within the 12 months of the date fo Balance Sheet. They will be shown in the Current Liabilities as Short-term Borrowings in the Balance Sheet. (ii) Dividend is paid on Paid-up Capital. (iii) Debentures are shown under the head Other Long-term Liabilities in the Balance Sheet. (iv) Share Application Money Pending Allotment is shown as a line item. (v) Loose Tools and Stores and Spares are shown as inventories in the Balance Sheet. (vi) Bills Receivable is shown as Trade Receivables in the Balance Sheet. (vii) Reserve Capital is part of Share Capital that a Company resolves not to call at any time it desires.
Answer» Solution :(i) FALSE (ii) TRUE (iii) False (iv) True (v) True (VI) True (VII) False

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