On 1st July 2022, Centaur Ltd. issued $\text{Rs. }25,00,000$, $8\%$ debentures of $\text{Rs. }100$ each as collateral security to First Level Bank against loan dues of $\text{Rs. }20,00,000$. How much net liability amount on account of this transaction will be shown in the main final figures of the Balance Sheet?

Debentures issued as collateral security do not represent an active primary financial liability for the firm until a default occurs. The actual internal liability that needs disclosure as a primary financial obligation in the Balance Sheet is the actual principal amount of the bank loan taken, which is $\text{Rs. }20,00,000$.The collateralized debentures are either disclosed via a descriptive footnote or nullified in the notes to accounts using a "Debenture Suspense Account" deduction entry, resulting in zero net main column balance sheet addition from the collateral issue.