1. What is Bonds Payable?

It is similar to notes payable, they are both long-term liabilities. Bonds payable is a risk
account that contains the sum owed to investors by the backer. This record ordinarily
shows up inside the long haul liabilities segment of the accounting report, since bonds
commonly develop in over one year. On the off chance that they develop inside one year,
at that point the detail rather shows up inside the present liabilities segment of the
monetary record.

2. What are the recognition criteria for bonds payable?

At the point when the security is given, it could be given at standard, markdown or
premium relying upon the contrast between the market loan cost and the security's
coupon rate.

3. Explain the initial measurement of bonds payable.

The two resources and liabilities are expanded by the measure of deals continues. When
it is about asset, the cash increased and if it is liability, the liability called bonds payable.
Par bond is equivalent to the face value of the bond.

4. Explain the subsequent measurement of bonds payable.

The cash received or sales continue when a bond is given is accounted for as a financing
money inflow on the giving organization's announcement of incomes. Moreover, bonds
payable are typically estimated and revealed at the business continues on the giving
organization's monetary record at the hour of issue, for example at the presumptive worth
of the bond less any rebate, or in addition to any premium.

5. What are disclosures required for bonds payable?

The disclosure required for bonds payable is bond issue name, the purpose of the bond
the issue, original par value of issue, issue date, type of bond, a report in government
activities, source of revenue for debt services, changes in debt and authorized but
unissued bond debts.