TS Grewal ii (2014) Solutions for Class 12 Commerce Accountancy Chapter 1 Financial Statements Of A Company are provided here with simple step-by-step explanations. These solutions for Financial Statements Of A Company are extremely popular among class 12 Commerce students for Accountancy Financial Statements Of A Company Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the TS Grewal ii (2014) Book of class 12 Commerce Accountancy Chapter 1 are provided here for you for free. You will also love the ad-free experience on Meritnation’s TS Grewal ii (2014) Solutions. All TS Grewal ii (2014) Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.

Page No 1.65:

Question 1:

Answer:

ITEMS HEAD
Sales Revenue from Operations
Revenue from services rendered Revenue from Operations
Sale of scrap Revenue from Operations
Interest earned or Loans Other Income
Profit on Sale of Investment Other Income



Page No 1.66:

Question 2:

ITEMS HEAD
Sales Revenue from Operations
Revenue from services rendered Revenue from Operations
Sale of scrap Revenue from Operations
Interest earned or Loans Other Income
Profit on Sale of Investment Other Income

Answer:

ITEMS HEAD
Profit on Sale of Building Other Income
Revenue from Project Consultancy Rendered Other Income
Sale of scrap Other Income
Interest earned or Loans Revenue from Operations
Profit on Sale of Investment Revenue from Operations

Page No 1.66:

Question 3:

ITEMS HEAD
Profit on Sale of Building Other Income
Revenue from Project Consultancy Rendered Other Income
Sale of scrap Other Income
Interest earned or Loans Revenue from Operations
Profit on Sale of Investment Revenue from Operations

Answer:

ITEMS HEAD
Profit on Sale of Fixed Assets Other Income
Fee Received for Arranging Loans Revenue from Operations
Interest on Loans Given Revenue from Operations
Profit on Sale of Investments Revenue from Operations
Sale of a Miscellaneous item Other Income

Page No 1.66:

Question 4:

ITEMS HEAD
Profit on Sale of Fixed Assets Other Income
Fee Received for Arranging Loans Revenue from Operations
Interest on Loans Given Revenue from Operations
Profit on Sale of Investments Revenue from Operations
Sale of a Miscellaneous item Other Income

Answer:

ITEMS HEAD
Profit on Sale of Fixed Assets Other Income
Fee Received for Arranging Loans Other Income
Interest on Loans Given Other Income
Profit on Sale of Investments Other Income
Sale of a Miscellaneous item Other Income

Page No 1.66:

Question 5:

ITEMS HEAD
Profit on Sale of Fixed Assets Other Income
Fee Received for Arranging Loans Other Income
Interest on Loans Given Other Income
Profit on Sale of Investments Other Income
Sale of a Miscellaneous item Other Income

Answer:

Page No 1.66:

Question 6:

Answer:


Note: Opening Inventory of Finished Goods and Closing Inventory of Finished Goods will not be considered as these are shown under Change in Inventory of Finished Goods.

Page No 1.66:

Question 7:


Note: Opening Inventory of Finished Goods and Closing Inventory of Finished Goods will not be considered as these are shown under Change in Inventory of Finished Goods.

Answer:


Note: Opening Inventory of Finished Goods and Closing Inventory of Finished Goods will not be considered as these are shown under Change in Inventory of Finished Goods. Also, Opening, Closing and Purchases of Stock-in-Trade are not considered as they are not part of cost of materials consumed.

Page No 1.66:

Question 8:


Note: Opening Inventory of Finished Goods and Closing Inventory of Finished Goods will not be considered as these are shown under Change in Inventory of Finished Goods. Also, Opening, Closing and Purchases of Stock-in-Trade are not considered as they are not part of cost of materials consumed.

Answer:


Note: Opening Inventory of Finished Goods and Closing Inventory of Finished Goods will not be considered as these are shown under Change in Inventory of Finished Goods, Work-in-Progress and Stock-in-Trade. Also, Opening, Closing and Purchases of Stock-in-Trade and Work-in-Progress are not considered as they are not part of cost of materials consumed.

Page No 1.66:

Question 9:


Note: Opening Inventory of Finished Goods and Closing Inventory of Finished Goods will not be considered as these are shown under Change in Inventory of Finished Goods, Work-in-Progress and Stock-in-Trade. Also, Opening, Closing and Purchases of Stock-in-Trade and Work-in-Progress are not considered as they are not part of cost of materials consumed.

Answer:

NOTES TO ACCOUNTS
Note No. Particulars
Amount
(Rs)
(a) Finished Goods  
  Opening Inventory 2,00,000  
  Less: Closing Inventory 1,75,000 25,000
    25,000
 
Rs 25,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Finished Goods.

Page No 1.66:

Question 10:

NOTES TO ACCOUNTS
Note No. Particulars
Amount
(Rs)
(a) Finished Goods  
  Opening Inventory 2,00,000  
  Less: Closing Inventory 1,75,000 25,000
    25,000
 
Rs 25,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Finished Goods.

Answer:

NOTES TO ACCOUNTS
Note No. Particulars
Amount
(Rs)
(a) Finished Goods  
  Opening Inventory 2,50,000  
  Less: Closing Inventory 2,00,000 50,000
    50,000

Rs 50,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Finished Goods.

Page No 1.66:

Question 11:

NOTES TO ACCOUNTS
Note No. Particulars
Amount
(Rs)
(a) Finished Goods  
  Opening Inventory 2,50,000  
  Less: Closing Inventory 2,00,000 50,000
    50,000

Rs 50,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Finished Goods.

Answer:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
(a) Work-in-Progress  
  Opening Inventory 1,00,000  
  Less: Closing Inventory 1,15,000 (15,000)
    (15,000)
(Rs 15,000) will be shown in the Statement of Profit and Loss against Change in Inventories of Work-in-Progress.



Page No 1.67:

Question 12:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
(a) Work-in-Progress  
  Opening Inventory 1,00,000  
  Less: Closing Inventory 1,15,000 (15,000)
    (15,000)
(Rs 15,000) will be shown in the Statement of Profit and Loss against Change in Inventories of Work-in-Progress.

Answer:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
(a) Work-in-Progress  
  Opening Inventory 1,50,000  
  Less: Closing Inventory 1,45,000 5,000
    5,000
Rs 5,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Work-in-Progress.

Page No 1.67:

Question 13:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
(a) Work-in-Progress  
  Opening Inventory 1,50,000  
  Less: Closing Inventory 1,45,000 5,000
    5,000
Rs 5,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Work-in-Progress.

Answer:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
(a) Stock-in-Trade  
  Opening Inventory 5,00,000  
  Less: Closing Inventory 4,50,000 50,000
    50,000
Rs 50,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Stock-in-Trade.

Page No 1.67:

Question 14:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
(a) Stock-in-Trade  
  Opening Inventory 5,00,000  
  Less: Closing Inventory 4,50,000 50,000
    50,000
Rs 50,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Stock-in-Trade.

Answer:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
(a) Stock-in-Trade  
  Opening Inventory 5,00,000  
  Less: Closing Inventory 4,00,000 1,00,000
    1,00,000
 
Rs 1,00,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Stock-in-Trade.

Page No 1.67:

Question 15:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
(a) Stock-in-Trade  
  Opening Inventory 5,00,000  
  Less: Closing Inventory 4,00,000 1,00,000
    1,00,000
 
Rs 1,00,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Stock-in-Trade.

Answer:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
  Change in Inventories of Finished Goods, WIP and Stock-in-Trade  
(a) Finished Goods  
  Opening Inventory 5,00,000  
  Less: Closing Inventory 5,50,000 (50,000)
    (50,000)
(b) Work-in-Progress  
  Opening Inventory 4,50,000  
  Less: Closing Inventory 4,25,000 25,000
    25,000
(c) Stock-in-Trade  
  Opening Inventory 6,50,000  
  Less: Closing Inventory 6,00,000 50,000
    50,000
  Net Change (a+b+c) 25,000
 
Rs 25,000 will be shown in the Statement of Profit and Loss against the Change in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade.

Page No 1.67:

Question 16:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
  Change in Inventories of Finished Goods, WIP and Stock-in-Trade  
(a) Finished Goods  
  Opening Inventory 5,00,000  
  Less: Closing Inventory 5,50,000 (50,000)
    (50,000)
(b) Work-in-Progress  
  Opening Inventory 4,50,000  
  Less: Closing Inventory 4,25,000 25,000
    25,000
(c) Stock-in-Trade  
  Opening Inventory 6,50,000  
  Less: Closing Inventory 6,00,000 50,000
    50,000
  Net Change (a+b+c) 25,000
 
Rs 25,000 will be shown in the Statement of Profit and Loss against the Change in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade.

Answer:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
  Change in Inventories of Finished Goods, WIP and Stock-in-Trade  
(a) Finished Goods  
  Opening Inventory 15,00,000  
  Less: Closing Inventory 12,50,000 2,50,000
    2,50,000
(b) Work-in-Progress  
  Opening Inventory 10,50,000  
  Less: Closing Inventory 9,25,000 1,25,000
    1,25,000
(c) Stock-in-Trade  
  Opening Inventory 9,50,000  
  Less: Closing Inventory 8,00,000 1,50,000
    1,50,000
  Net Change (a+b+c) 5,25,000
 
Rs 5,25,000 will be shown in the Statement of Profit and Loss against the Change in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade.

Page No 1.67:

Question 17:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
  Change in Inventories of Finished Goods, WIP and Stock-in-Trade  
(a) Finished Goods  
  Opening Inventory 15,00,000  
  Less: Closing Inventory 12,50,000 2,50,000
    2,50,000
(b) Work-in-Progress  
  Opening Inventory 10,50,000  
  Less: Closing Inventory 9,25,000 1,25,000
    1,25,000
(c) Stock-in-Trade  
  Opening Inventory 9,50,000  
  Less: Closing Inventory 8,00,000 1,50,000
    1,50,000
  Net Change (a+b+c) 5,25,000
 
Rs 5,25,000 will be shown in the Statement of Profit and Loss against the Change in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade.

Answer:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
  Employees Benefit Expenses  
     
  Wages 5,40,000  
  Salaries 7,20,000  
  Bonus 1,05,000  
  Staff Welfare Expenses 60,000  14,25,000
     
  Amount to be shown in the Statement of Profit and Loss 14,25,000
*Amount spent on promotion of business is not included in Employees Benefit Expenses.

Page No 1.67:

Question 18:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
  Employees Benefit Expenses  
     
  Wages 5,40,000  
  Salaries 7,20,000  
  Bonus 1,05,000  
  Staff Welfare Expenses 60,000  14,25,000
     
  Amount to be shown in the Statement of Profit and Loss 14,25,000
*Amount spent on promotion of business is not included in Employees Benefit Expenses.

Answer:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
  Employees Benefit Expenses  
     
  Wages 2,70,000  
  Salaries 3,60,000  
  Staff Welfare Expenses 60,000 6,90,000
     
  Amount to be shown in the Statement of Profit and Loss 6,90,000
*Amount spent on promotion of business and printing & Stationary expenses are not included in Employees Benefit Expenses.

Page No 1.67:

Question 19:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
  Employees Benefit Expenses  
     
  Wages 2,70,000  
  Salaries 3,60,000  
  Staff Welfare Expenses 60,000 6,90,000
     
  Amount to be shown in the Statement of Profit and Loss 6,90,000
*Amount spent on promotion of business and printing & Stationary expenses are not included in Employees Benefit Expenses.

Answer:

Items that will be shown in the Notes to Accounts on Finance Costs are:

i. Interest paid on Borrowings from Prince Finance Ltd.;

ii. Interest paid on Term Loan to Bank;
iii. Interest paid on Public Deposits;
iv. Loss on Issue of Debentures written off.

The Bank charges are not shown under Finance Costs but under ‘Other Expenses’, as they are expenses for the services availed from the bank.

Page No 1.67:

Question 20:

Items that will be shown in the Notes to Accounts on Finance Costs are:

i. Interest paid on Borrowings from Prince Finance Ltd.;

ii. Interest paid on Term Loan to Bank;
iii. Interest paid on Public Deposits;
iv. Loss on Issue of Debentures written off.

The Bank charges are not shown under Finance Costs but under ‘Other Expenses’, as they are expenses for the services availed from the bank.

Answer:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
  Finance Costs  
     
  Interest paid to bank 75,000  
  Interest on Debentures 58,000  
  Loss on Issue of Debentures written off 27,500  
  Commitment charges 15,000 1,75,500
    1,75,500



Page No 1.68:

Question 21:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
  Finance Costs  
     
  Interest paid to bank 75,000  
  Interest on Debentures 58,000  
  Loss on Issue of Debentures written off 27,500  
  Commitment charges 15,000 1,75,500
    1,75,500

Answer:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
  Depreciation and Amortisation Expenses  
  Depreciation  
  Building 15,500  
  Plant and Machinery 25,000  
  Computers 60,000 1,00,500
  Amortisation  
  Goodwill written off 7,500  
  Patents written off 12,500 20,000
    1,20,500
  Amount to be shown in the Statement of Profit and Loss 1,20,500

Page No 1.68:

Question 22:

NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
  Depreciation and Amortisation Expenses  
  Depreciation  
  Building 15,500  
  Plant and Machinery 25,000  
  Computers 60,000 1,00,500
  Amortisation  
  Goodwill written off 7,500  
  Patents written off 12,500 20,000
    1,20,500
  Amount to be shown in the Statement of Profit and Loss 1,20,500

Answer:

Items that will be shown in the Notes to Accounts on ‘other expenses’ are
(ii) Postage Expenses;
(iii)Telephone and Internet Expenses;
(iv) Rent for warehouse;
(v) Carriage Inwards;
(viii)
Computer Hiring charges;
(ix) Audit fee

Page No 1.68:

Question 23:

Items that will be shown in the Notes to Accounts on ‘other expenses’ are
(ii) Postage Expenses;
(iii)Telephone and Internet Expenses;
(iv) Rent for warehouse;
(v) Carriage Inwards;
(viii)
Computer Hiring charges;
(ix) Audit fee

Answer:

ITEMS MAJOR HEAD
Sale of Goods Revenue from Operations
Revenue from Services rendered Revenue from Operations
Interest earned Other Income
Profit on Sale of Assets Other Income
Purchase of Stock-in-Trade Purchase of Stock-in-Trade
Salaries and Wages Employees Benefit Expenses
Interest paid to Bank Finance Costs
Carriage Outward Other Expenses

Page No 1.68:

Question 24:

ITEMS MAJOR HEAD
Sale of Goods Revenue from Operations
Revenue from Services rendered Revenue from Operations
Interest earned Other Income
Profit on Sale of Assets Other Income
Purchase of Stock-in-Trade Purchase of Stock-in-Trade
Salaries and Wages Employees Benefit Expenses
Interest paid to Bank Finance Costs
Carriage Outward Other Expenses

Answer:

ITEMS MAJOR HEAD
Interest on Loans Given Revenue from Operations
Profit on Sale of Securities Revenue from Operations
Loss on Sale of Fixed Assets Other Expenses
Interest paid on Deposits Finance Costs
Depreciation on Computers Depreciation and Amortisation Expenses
Goodwill Written off Depreciation and Amortisation Expenses
Commission paid for Deposit Mobilisation Finance Costs
Repairs Expenses Other Expenses

Page No 1.68:

Question 25:

ITEMS MAJOR HEAD
Interest on Loans Given Revenue from Operations
Profit on Sale of Securities Revenue from Operations
Loss on Sale of Fixed Assets Other Expenses
Interest paid on Deposits Finance Costs
Depreciation on Computers Depreciation and Amortisation Expenses
Goodwill Written off Depreciation and Amortisation Expenses
Commission paid for Deposit Mobilisation Finance Costs
Repairs Expenses Other Expenses

Answer:

Items Line Items of Financial Statements
Sales Revenue from Operations
Loss on Sale of Vehicle Other Expenses
Debentures Long Term Borrowings
Unamortised Loss on Issue of Debentures (to be written off within 12 months of the date of Balance Sheet) Other Non-Current Assets
Encashable Leave Payable at the time of Retirement Long Term Provisions
Tax Reserve Reserves and Surplus
Carriage on Purchase of Stock-in Trade Other Expenses
Telephone and Internet expenses Other Expenses

Page No 1.68:

Question 26:

Items Line Items of Financial Statements
Sales Revenue from Operations
Loss on Sale of Vehicle Other Expenses
Debentures Long Term Borrowings
Unamortised Loss on Issue of Debentures (to be written off within 12 months of the date of Balance Sheet) Other Non-Current Assets
Encashable Leave Payable at the time of Retirement Long Term Provisions
Tax Reserve Reserves and Surplus
Carriage on Purchase of Stock-in Trade Other Expenses
Telephone and Internet expenses Other Expenses

Answer:

Items Line Items of Financial Statements
Sale of Scrap Revenue from Operations
Profit on Sale of Vehicle Other Income
Deposits Long Term Borrowings
Loss on Issue of Debentures written off Other Expenses
Gratuity Payable at the time of Retirement Long Term Provisions
Workmen Compensation Reserve Reserves and Surplus
Carriage on paid on Sales Other Expenses
Selling and Distribution Expenses Other Expenses



Page No 1.69:

Question 27:

Items Line Items of Financial Statements
Sale of Scrap Revenue from Operations
Profit on Sale of Vehicle Other Income
Deposits Long Term Borrowings
Loss on Issue of Debentures written off Other Expenses
Gratuity Payable at the time of Retirement Long Term Provisions
Workmen Compensation Reserve Reserves and Surplus
Carriage on paid on Sales Other Expenses
Selling and Distribution Expenses Other Expenses

Answer:

 The major heads in the Equities and Liabilities part of the Balance sheet are:
i. Shareholder’s Funds,
ii. Share Application Money Pending Allotment,
iii. Non- Current Liabilities and
iv. Current Liabilities
 

Balance Sheet
as at _______
Particulars Note No. Amount
(Rs)
I. Equity and Liabilities    
    1. Shareholders’ Funds    
a. Share Capital    
b. Reserves and Surplus    
c. Money Received against Share Warrants    
     2.  Share Application Money Pending Allotment    
3. Non-Current Liabilities    
  1. Long-term Borrowings
   
  1. Deferred Tax Liabilities (Net)
   
  1. Other Long-term Liabilities
   
  1. Long Term Provisions
   
4. Current Liabilities    
  1. Short-term Borrowings
   
  1. Trade Payables
   
  1. Other Current Liabilities
   
  1. Short-term Provisions
   
Total    

Page No 1.69:

Question 28:

 The major heads in the Equities and Liabilities part of the Balance sheet are:
i. Shareholder’s Funds,
ii. Share Application Money Pending Allotment,
iii. Non- Current Liabilities and
iv. Current Liabilities
 

Balance Sheet
as at _______
Particulars Note No. Amount
(Rs)
I. Equity and Liabilities    
    1. Shareholders’ Funds    
a. Share Capital    
b. Reserves and Surplus    
c. Money Received against Share Warrants    
     2.  Share Application Money Pending Allotment    
3. Non-Current Liabilities    
  1. Long-term Borrowings
   
  1. Deferred Tax Liabilities (Net)
   
  1. Other Long-term Liabilities
   
  1. Long Term Provisions
   
4. Current Liabilities    
  1. Short-term Borrowings
   
  1. Trade Payables
   
  1. Other Current Liabilities
   
  1. Short-term Provisions
   
Total    

Answer:

Items Major Head
Share Capital Shareholder’s Funds
Money received against share warrants Shareholder’s Funds

Page No 1.69:

Question 29:

Items Major Head
Share Capital Shareholder’s Funds
Money received against share warrants Shareholder’s Funds

Answer:

Items shown under Reserves and Surplus are:

i. Capital Reserve,
ii. Capital Redemption Reserve,
iii. Securities Premium Reserve,
iv. Debenture Redemption Reserve,
v. Revaluation Reserve etc.

Page No 1.69:

Question 30:

Items shown under Reserves and Surplus are:

i. Capital Reserve,
ii. Capital Redemption Reserve,
iii. Securities Premium Reserve,
iv. Debenture Redemption Reserve,
v. Revaluation Reserve etc.

Answer:

The appropriation will be shown in the following manner:

Extract of Balance Sheet
as at …..
Particulars Note No. Amount
(Rs)
I. Equity and Liabilities    
1. Shareholders’ Funds    
a. Share Capital    
b. Reserves and Surplus  1 1,50,000
     2.  Share Application Money Pending Allotment    
3. Non-Current Liabilities    
4. Current Liabilities    
  1. Short-term Provisions
 4 25,000
Total    
 
NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
1 Reserves and Surplus  
  (a) Surplus, i.e. Balance in Statement of Profit and Loss 1,00,000  
  Add. Profit for the year 75,000  
  Less: Appropriations  
  Transfer to Debenture Redemption Reserve (15,000)  
  Proposed Dividend (25,000) 1,35,000 
     
     
  (b) Debenture Redemption Reserve  
  Transferred from Surplus i.e. Balance in Statement of Profit and Loss 15,000
  Total (a+b) [ to be Shown in Balance Sheet against Reserves and Surplus] 1,50,000
     
4 Short-term Provisions  
  Proposed Dividend 25,000
     

Page No 1.69:

Question 31:

The appropriation will be shown in the following manner:

Extract of Balance Sheet
as at …..
Particulars Note No. Amount
(Rs)
I. Equity and Liabilities    
1. Shareholders’ Funds    
a. Share Capital    
b. Reserves and Surplus  1 1,50,000
     2.  Share Application Money Pending Allotment    
3. Non-Current Liabilities    
4. Current Liabilities    
  1. Short-term Provisions
 4 25,000
Total    
 
NOTES TO ACCOUNTS
Note No. Particulars Amount
(Rs)
1 Reserves and Surplus  
  (a) Surplus, i.e. Balance in Statement of Profit and Loss 1,00,000  
  Add. Profit for the year 75,000  
  Less: Appropriations  
  Transfer to Debenture Redemption Reserve (15,000)  
  Proposed Dividend (25,000) 1,35,000 
     
     
  (b) Debenture Redemption Reserve  
  Transferred from Surplus i.e. Balance in Statement of Profit and Loss 15,000
  Total (a+b) [ to be Shown in Balance Sheet against Reserves and Surplus] 1,50,000
     
4 Short-term Provisions  
  Proposed Dividend 25,000
     

Answer:

Items Sub-head
Long-term Borrowings Non-Current Liabilities
Deferred Tax Liabilities (Net) Non-Current Liabilities
Long-Term Provisions Non-Current Liabilities

Page No 1.69:

Question 32:

Items Sub-head
Long-term Borrowings Non-Current Liabilities
Deferred Tax Liabilities (Net) Non-Current Liabilities
Long-Term Provisions Non-Current Liabilities

Answer:

Items shown under Long-term Borrowings are:

a. Debentures,
b. Bonds,
c. Terms Loans (both from Banks and from others),
d. Public Deposits,
e. Other Loans and Advances.

Page No 1.69:

Question 33:

Items shown under Long-term Borrowings are:

a. Debentures,
b. Bonds,
c. Terms Loans (both from Banks and from others),
d. Public Deposits,
e. Other Loans and Advances.

Answer:

Items Head Disclosure
Calls-in-Arrears Shareholder’s Funds It is shown as a deduction from Subscribed Capital shown as ‘Subscribed but not fully paid’ under Shareholder’s Funds
Share Application Money Pending Allotment Share Application Money Pending Allotment It is shown as a separate line item
Unpaid Dividend Current Liabilities It is shown as ‘Other Current Liability’ under Current Liabilities
Dividend not paid on Cumulative Preference Shares Contingent Liabilities and Commitments It is shown as Contingent Liabilities and Commitments in Notes to Accounts

Page No 1.69:

Question 34:

Items Head Disclosure
Calls-in-Arrears Shareholder’s Funds It is shown as a deduction from Subscribed Capital shown as ‘Subscribed but not fully paid’ under Shareholder’s Funds
Share Application Money Pending Allotment Share Application Money Pending Allotment It is shown as a separate line item
Unpaid Dividend Current Liabilities It is shown as ‘Other Current Liability’ under Current Liabilities
Dividend not paid on Cumulative Preference Shares Contingent Liabilities and Commitments It is shown as Contingent Liabilities and Commitments in Notes to Accounts

Answer:

Items Main head Sub-head
Bonds Non-Current Liabilities Long Term Borrowings
Debentures Non-Current Liabilities Long Term Borrowings
Deposits Non-Current Liabilities Long Term Borrowings
Capital redemption Reserve Shareholder’s Funds Reserves and Surplus
Share Forfeiture Account Shareholder’s Funds Subscribed Capital under Share Capital
Sundry Creditors Current Liabilities Trade Payables
Interest Accrued but not due on Debentures Current Liabilities Other Current Liabilities



Page No 1.70:

Question 35:

Items Main head Sub-head
Bonds Non-Current Liabilities Long Term Borrowings
Debentures Non-Current Liabilities Long Term Borrowings
Deposits Non-Current Liabilities Long Term Borrowings
Capital redemption Reserve Shareholder’s Funds Reserves and Surplus
Share Forfeiture Account Shareholder’s Funds Subscribed Capital under Share Capital
Sundry Creditors Current Liabilities Trade Payables
Interest Accrued but not due on Debentures Current Liabilities Other Current Liabilities

Answer:

Major head Items
Reserves and Surplus Capital Reserve, Revaluation Reserve
Long-term Borrowings Debentures, Term Loans from Bank and Others
Short-term Borrowings Cash credit from bank, Loans repayable on demand
Other Current Liabilities Income received in advance, Unpaid Dividends

Page No 1.70:

Question 36:

Major head Items
Reserves and Surplus Capital Reserve, Revaluation Reserve
Long-term Borrowings Debentures, Term Loans from Bank and Others
Short-term Borrowings Cash credit from bank, Loans repayable on demand
Other Current Liabilities Income received in advance, Unpaid Dividends

Answer:

There are two major heads in Assets part of the Balance Sheet as per Schedule VI

i. Non-Current Assets, and
ii. Current Assets

Page No 1.70:

Question 37:

There are two major heads in Assets part of the Balance Sheet as per Schedule VI

i. Non-Current Assets, and
ii. Current Assets

Answer:

Items Main head Sub-head
Intangible Assets Non-Current Assets Fixed Assets
Intangible Assets under development Non-Current Assets Fixed Assets
Investments (more than 12 months) Non-Current Assets Non-Current Investments
Deferred Tax Assets (Net) Non-Current Assets Deferred Tax Assets (Net)
Stores and Spares Current Assets Inventories
Loose Tools Current Assets Inventories

Page No 1.70:

Question 38:

Items Main head Sub-head
Intangible Assets Non-Current Assets Fixed Assets
Intangible Assets under development Non-Current Assets Fixed Assets
Investments (more than 12 months) Non-Current Assets Non-Current Investments
Deferred Tax Assets (Net) Non-Current Assets Deferred Tax Assets (Net)
Stores and Spares Current Assets Inventories
Loose Tools Current Assets Inventories

Answer:

Items Main head Sub-head
Loose Tools Current Assets Inventories
Bills Receivable Current Assets Trade Receivables
Sundry Debtors Current Assets Trade Receivables
Advance Recoverable in Cash Current Assets Short-term Loans and Advances

Page No 1.70:

Question 39:

Items Main head Sub-head
Loose Tools Current Assets Inventories
Bills Receivable Current Assets Trade Receivables
Sundry Debtors Current Assets Trade Receivables
Advance Recoverable in Cash Current Assets Short-term Loans and Advances

Answer:

Items Main head Sub-head
Sundry Debtors Current Assets Trade Receivables
Patents and Trade Marks Non-Current Assets Fixed Assets (Intangible Assets)
Shares in Quoted Companies Non-Current Assets Non-Current Investments
Bills Receivable Current Assets Trade Receivables
Advance Recoverable in Cash Current Assets Short-term Loans and Advances
Prepaid Insurance Current Assets Other Current Assets
Work-in-Progress Non-Current Assets Fixed Assets (Capital Work-in-progress)

Page No 1.70:

Question 40:

Items Main head Sub-head
Sundry Debtors Current Assets Trade Receivables
Patents and Trade Marks Non-Current Assets Fixed Assets (Intangible Assets)
Shares in Quoted Companies Non-Current Assets Non-Current Investments
Bills Receivable Current Assets Trade Receivables
Advance Recoverable in Cash Current Assets Short-term Loans and Advances
Prepaid Insurance Current Assets Other Current Assets
Work-in-Progress Non-Current Assets Fixed Assets (Capital Work-in-progress)

Answer:

ITEMS MAJOR HEAD SUB-HEAD
Debentures Non-Current Liabilities Long-Term Borrowings
Interest accrued on Investments Current Assets Other Current Assets
Goodwill Non-current Assets Fixed Assets (Intangible Assets)
Bill of Exchange Current Assets Trade Receivables



Page No 1.71:

Question 41:

ITEMS MAJOR HEAD SUB-HEAD
Debentures Non-Current Liabilities Long-Term Borrowings
Interest accrued on Investments Current Assets Other Current Assets
Goodwill Non-current Assets Fixed Assets (Intangible Assets)
Bill of Exchange Current Assets Trade Receivables

Answer:

ITEMS HEAD SUB-HEAD
Unamortised Loss on Issue of Debentures (To be written off after 12 months from date of Balance sheet) Non-Current Assets Other Non-Current Assets
10% Debentures Non Current Liabilities Long-term Borrowings
Stock-in-Trade Current Assets Inventories
Cash at Bank Current Assets Cash and Cash equivalents
Bills Receivable Current Assets Trade Receivables
Goodwill Non-Current Assets Fixed Assets (Intangible Assets)
Loose Tools Current Assets Inventories
Truck Non-Current Assets Fixed Assets (Tangible Assets)
Provision for Tax Current Liabilities Short term Provisions
Sundry Creditors Current Liabilities Trade Payables

Page No 1.71:

Question 42:

ITEMS HEAD SUB-HEAD
Unamortised Loss on Issue of Debentures (To be written off after 12 months from date of Balance sheet) Non-Current Assets Other Non-Current Assets
10% Debentures Non Current Liabilities Long-term Borrowings
Stock-in-Trade Current Assets Inventories
Cash at Bank Current Assets Cash and Cash equivalents
Bills Receivable Current Assets Trade Receivables
Goodwill Non-Current Assets Fixed Assets (Intangible Assets)
Loose Tools Current Assets Inventories
Truck Non-Current Assets Fixed Assets (Tangible Assets)
Provision for Tax Current Liabilities Short term Provisions
Sundry Creditors Current Liabilities Trade Payables

Answer:

S. No.

Items

Main Head

Sub-Head

1

Bank Balance

Current Assets

Cash and Cash Equivalents

2

Investments (Long-term)

Non-Current Assets

Non-Current Investments

3

Outstanding Salary

Current Liabilities

Other Current Liabilities

4

Authorised Capital

Share Capital

5

Bills Payable

Current Liabilities

Trade Payables

6

Unclaimed Dividends

Current Liabilities

Other Current Liabilities

7

Share Option Outstanding Account

Shareholders’ Funds

Reserves and Surplus

8

General Reserve

Shareholders’ Funds

Reserves and Surplus

9

Subsidy Reserve

Shareholders’ Funds

Reserves and Surplus

 

Page No 1.71:

Question 43:

S. No.

Items

Main Head

Sub-Head

1

Bank Balance

Current Assets

Cash and Cash Equivalents

2

Investments (Long-term)

Non-Current Assets

Non-Current Investments

3

Outstanding Salary

Current Liabilities

Other Current Liabilities

4

Authorised Capital

Share Capital

5

Bills Payable

Current Liabilities

Trade Payables

6

Unclaimed Dividends

Current Liabilities

Other Current Liabilities

7

Share Option Outstanding Account

Shareholders’ Funds

Reserves and Surplus

8

General Reserve

Shareholders’ Funds

Reserves and Surplus

9

Subsidy Reserve

Shareholders’ Funds

Reserves and Surplus

 

Answer:

S. No.

Items

Main Head

Sub-Head

1

Calls-in-Arrears

Share Capital

Subscribed Share capital

2

Commission Received in Advance

Current Liabilities

Other Current Liabilities

3

Debentures

Non-Current Liabilities

Long-term Borrowings

4

Stores and Spare Parts

Current Assets

Inventories

5

Land and Building

Non-Current Assets

Tangible Assets

6

Forfeited Shares Account

Share Capital

Subscribed Share Capital

7

Government Securities

Non-Current Assets

Non-Current Investments

8

Uncalled Liability on partly paid shares

Commitments in Notes to Accounts

Commitments in Notes to Accounts

 

Page No 1.71:

Question 44:

S. No.

Items

Main Head

Sub-Head

1

Calls-in-Arrears

Share Capital

Subscribed Share capital

2

Commission Received in Advance

Current Liabilities

Other Current Liabilities

3

Debentures

Non-Current Liabilities

Long-term Borrowings

4

Stores and Spare Parts

Current Assets

Inventories

5

Land and Building

Non-Current Assets

Tangible Assets

6

Forfeited Shares Account

Share Capital

Subscribed Share Capital

7

Government Securities

Non-Current Assets

Non-Current Investments

8

Uncalled Liability on partly paid shares

Commitments in Notes to Accounts

Commitments in Notes to Accounts

 

Answer:

S. No.

Items

Main Head

Sub-Head

1

Public Deposits

Non-Current Liabilities

Long-term Borrowings

2

Office Furniture

Non-Current Assets

Tangible Assets

3

Prepaid Rent

Current Assets

Other Current Assets

4

Outstanding Salaries

Current Liabilities

Other Current Liabilities

5

Computer Software

Non-Current Assets

Intangible Assets

6

Interest Accrued on Investment

Current Assets

Other Current Assets

7

Bills Discounted but not Matured

It is shown as a Contingent Liability in the Notes to Accounts

It is shown as a Contingent Liability in the Notes to Accounts

8

Live Stock

Non-Current Assets

Tangible Assets

 



Page No 1.72:

Question 45:

S. No.

Items

Main Head

Sub-Head

1

Public Deposits

Non-Current Liabilities

Long-term Borrowings

2

Office Furniture

Non-Current Assets

Tangible Assets

3

Prepaid Rent

Current Assets

Other Current Assets

4

Outstanding Salaries

Current Liabilities

Other Current Liabilities

5

Computer Software

Non-Current Assets

Intangible Assets

6

Interest Accrued on Investment

Current Assets

Other Current Assets

7

Bills Discounted but not Matured

It is shown as a Contingent Liability in the Notes to Accounts

It is shown as a Contingent Liability in the Notes to Accounts

8

Live Stock

Non-Current Assets

Tangible Assets

 

Answer:

ITEMS MAJOR HEAD SUB-HEAD
Surplus, i.e. Balance in Statement of Profit and Loss (Dr.) Shareholder’s Funds Reserves and Surplus
Interest accrued and due on debentures Current Liabilities Other Current Liabilities
Computer Software under development Non-current Assets Fixed Assets (Intangible Assets)
Interest accrued on Investments Current Assets Other Current Assets

Page No 1.72:

Question 46:

ITEMS MAJOR HEAD SUB-HEAD
Surplus, i.e. Balance in Statement of Profit and Loss (Dr.) Shareholder’s Funds Reserves and Surplus
Interest accrued and due on debentures Current Liabilities Other Current Liabilities
Computer Software under development Non-current Assets Fixed Assets (Intangible Assets)
Interest accrued on Investments Current Assets Other Current Assets

Answer:

Extract of Balance Sheet
as at March 31, 2014
Particulars Note No. Amount
(Rs)
2. Non-Current Liabilities    
Long-term Borrowings    
11% Loan from SBI 20,00,000    
7,500, 10% Debentures of Rs 100 each 7,50,000   27,50,000
3. Current Liabilities    
         Other Current Liabilities    
               Current Maturity of Long-term Debts (2,500 Debentures of Rs 100 each maturing within 12 months) 2,50,000    
               Interest accrued and due on Debentures 1,00,000    
              Interest accrued and due on Loan 2,20,000   5,70,000
     
Total   33,20,000

Page No 1.72:

Question 47:

Extract of Balance Sheet
as at March 31, 2014
Particulars Note No. Amount
(Rs)
2. Non-Current Liabilities    
Long-term Borrowings    
11% Loan from SBI 20,00,000    
7,500, 10% Debentures of Rs 100 each 7,50,000   27,50,000
3. Current Liabilities    
         Other Current Liabilities    
               Current Maturity of Long-term Debts (2,500 Debentures of Rs 100 each maturing within 12 months) 2,50,000    
               Interest accrued and due on Debentures 1,00,000    
              Interest accrued and due on Loan 2,20,000   5,70,000
     
Total   33,20,000

Answer:

Balance Sheet

as at …

Particulars

Note No.

Amount

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

2. Non-Current Liabilities

 

 

Long-term Borrowings

1

1,90,000

3. Current Liabilities

 

 

Short-term Provisions

2

6,000

Total

 

 

 

 

 

II Assets

 

 

1. Non-Current Assets

 

 

Intangible (Fixed Assets)

3

20,000

2. Current Assets

 

 

a. Inventories

4

40,000

Total

 

 

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Long-term Borrowings

 

 

10% Debentures

1,90,000

 

 

 

2

Short-term Provisions

 

 

Provision for Tax

6,000

 

 

 

3

Intangible (Fixed Assets)

 

 

Goodwill

20,000

 

 

 

4

Inventories

 

 

Stock-in-Trade

40,000

 

 

 

 

Page No 1.72:

Question 48:

Balance Sheet

as at …

Particulars

Note No.

Amount

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

2. Non-Current Liabilities

 

 

Long-term Borrowings

1

1,90,000

3. Current Liabilities

 

 

Short-term Provisions

2

6,000

Total

 

 

 

 

 

II Assets

 

 

1. Non-Current Assets

 

 

Intangible (Fixed Assets)

3

20,000

2. Current Assets

 

 

a. Inventories

4

40,000

Total

 

 

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Long-term Borrowings

 

 

10% Debentures

1,90,000

 

 

 

2

Short-term Provisions

 

 

Provision for Tax

6,000

 

 

 

3

Intangible (Fixed Assets)

 

 

Goodwill

20,000

 

 

 

4

Inventories

 

 

Stock-in-Trade

40,000

 

 

 

 

Answer:

Balance Sheet

as at March 31, 2014

Particulars

Note No.

Amount

(Rs)

I Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

5,000

b. Reserves and Surplus

2

4,200

2. Non-Current Liabilities

 

 

Long-term Borrowings

3

3,000

3. Current Liabilities

 

 

Other Current Liabilities

 

2,500

Total

 

14,700

 

 

 

II Assets

 

 

1. Non-Current Assets

 

 

Tangible (Fixed Assets)

4

8,300

2. Current Assets

 

 

Other Current Assets

 

6,400

Total

 

14,700

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Share Capital

 

 

Share Capital

5,000

 

 

 

2

Reserves and Surplus

 

 

General Reserve

3,000

 

Balance in Statement of Profit and Loss (Credit)

1,200

 

 

4,200

 

 

 

3

Long-term Borrowings

 

 

8% Debentures

3,000

 

 

 

4

Tangible (Fixed Assets)

 

 

Fixed Assets (Cost)

9,000

 

 

Depreciation

(700)

8,300

 

 

 

 

 



Page No 1.73:

Question 49:

Balance Sheet

as at March 31, 2014

Particulars

Note No.

Amount

(Rs)

I Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

5,000

b. Reserves and Surplus

2

4,200

2. Non-Current Liabilities

 

 

Long-term Borrowings

3

3,000

3. Current Liabilities

 

 

Other Current Liabilities

 

2,500

Total

 

14,700

 

 

 

II Assets

 

 

1. Non-Current Assets

 

 

Tangible (Fixed Assets)

4

8,300

2. Current Assets

 

 

Other Current Assets

 

6,400

Total

 

14,700

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Share Capital

 

 

Share Capital

5,000

 

 

 

2

Reserves and Surplus

 

 

General Reserve

3,000

 

Balance in Statement of Profit and Loss (Credit)

1,200

 

 

4,200

 

 

 

3

Long-term Borrowings

 

 

8% Debentures

3,000

 

 

 

4

Tangible (Fixed Assets)

 

 

Fixed Assets (Cost)

9,000

 

 

Depreciation

(700)

8,300

 

 

 

 

 

Answer:

Balance Sheet

as at March 31, 2014

Particulars

Note No.

Amount

(Rs in ‘000)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

 

800

b. Reserves and Surplus

 

180

2. Non-Current Liabilities

 

 

Long-term Borrowings

 

1,000

3. Current Liabilities

 

 

Trade Payables

 

60

Total

 

2,040

 

 

 

II Assets

 

 

1. Non-Current Assets

 

 

Tangible (Fixed Assets)

 

1,600

2. Current Assets

 

 

Inventories

 

40

Trade Receivables

 

160

Cash and Cash Equivalents

 

240

Total

 

2,040

 

 

 

 

Page No 1.73:

Question 50:

Balance Sheet

as at March 31, 2014

Particulars

Note No.

Amount

(Rs in ‘000)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

 

800

b. Reserves and Surplus

 

180

2. Non-Current Liabilities

 

 

Long-term Borrowings

 

1,000

3. Current Liabilities

 

 

Trade Payables

 

60

Total

 

2,040

 

 

 

II Assets

 

 

1. Non-Current Assets

 

 

Tangible (Fixed Assets)

 

1,600

2. Current Assets

 

 

Inventories

 

40

Trade Receivables

 

160

Cash and Cash Equivalents

 

240

Total

 

2,040

 

 

 

 

Answer:

Balance Sheet

as at March 31, 2014

Particulars

Note No.

Amount

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

30,00,000

b. Reserves and Surplus

2

4,00,000

2. Non-Current Liabilities

 

 

a. Long-term Borrowings

3

6,00,000

3. Current Liabilities

 

 

a. Other Current Liabilities

4

8,00,000

b. Short-term Provisions

5

2,00,000

Total

 

50,00,000

 

 

 

II Assets

 

 

1. Non-Current Assets

 

 

a. Fixed Assets

 

 

i) Tangible Assets

6

30,00,000

b. Non-Current Investments

7

4,00,000

2. Current Assets

 

 

a. Inventories

8

6,00,000

b. Trade Receivables

9

8,00,000

c. Cash and Cash Equivalents

10

1,50,000

d. Short-term Loans and Advances

11

50,000

Total

 

50,00,000

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Share Capital

 

 

Equity Share Capital

20,00,000

 

12% Preference Share Capital

10,00,000

 

 

30,00,000

2

Reserves and Surplus

 

 

Workmen Compensation Reserve

1,00,000

 

Balance in Statement of Profit and Loss (Credit)

3,00,000

 

 

4,00,000

 

 

 

3

Long-term Borrowings

 

 

12% Debentures

6,00,000

 

 

 

4

Other Current Liabilities

 

 

Current Liabilities

8,00,000

 

 

 

5

Short-term Provisions

 

 

Provision for Taxation

2,00,000

 

 

 

6

Tangible Assets

 

 

Fixed Assets (Cost)

46,60,000

 

 

Depreciation

(16,60,000)

30,00,000

 

 

 

7

Non-Current Investments

 

 

Investments

4,00,000

 

 

 

8

Inventories

 

 

Stock

6,00,000

 

 

 

9

Trade Receivables

 

 

Sundry Debtors

8,00,000

 

 

 

10

Cash and Cash Equivalents

 

 

Cash

1,50,000

 

 

 

11

Short-term Loans and Advances

 

 

Loans and Advances

50,000

 

 

 

 

 

Page No 1.73:

Question 51:

Balance Sheet

as at March 31, 2014

Particulars

Note No.

Amount

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

30,00,000

b. Reserves and Surplus

2

4,00,000

2. Non-Current Liabilities

 

 

a. Long-term Borrowings

3

6,00,000

3. Current Liabilities

 

 

a. Other Current Liabilities

4

8,00,000

b. Short-term Provisions

5

2,00,000

Total

 

50,00,000

 

 

 

II Assets

 

 

1. Non-Current Assets

 

 

a. Fixed Assets

 

 

i) Tangible Assets

6

30,00,000

b. Non-Current Investments

7

4,00,000

2. Current Assets

 

 

a. Inventories

8

6,00,000

b. Trade Receivables

9

8,00,000

c. Cash and Cash Equivalents

10

1,50,000

d. Short-term Loans and Advances

11

50,000

Total

 

50,00,000

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Share Capital

 

 

Equity Share Capital

20,00,000

 

12% Preference Share Capital

10,00,000

 

 

30,00,000

2

Reserves and Surplus

 

 

Workmen Compensation Reserve

1,00,000

 

Balance in Statement of Profit and Loss (Credit)

3,00,000

 

 

4,00,000

 

 

 

3

Long-term Borrowings

 

 

12% Debentures

6,00,000

 

 

 

4

Other Current Liabilities

 

 

Current Liabilities

8,00,000

 

 

 

5

Short-term Provisions

 

 

Provision for Taxation

2,00,000

 

 

 

6

Tangible Assets

 

 

Fixed Assets (Cost)

46,60,000

 

 

Depreciation

(16,60,000)

30,00,000

 

 

 

7

Non-Current Investments

 

 

Investments

4,00,000

 

 

 

8

Inventories

 

 

Stock

6,00,000

 

 

 

9

Trade Receivables

 

 

Sundry Debtors

8,00,000

 

 

 

10

Cash and Cash Equivalents

 

 

Cash

1,50,000

 

 

 

11

Short-term Loans and Advances

 

 

Loans and Advances

50,000

 

 

 

 

 

Answer:

Balance Sheet

as at March 31, 2014

Particulars

Note No.

Amount

(Rs)

I Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

10,00,000

b. Reserves and Surplus

2

1,95,000

2. Non-Current Liabilities

 

 

Long-term Borrowings

3

3,00,000

3. Current Liabilities

 

 

a. Short-term Provisions

4

1,55,000

b. Trade Payables

5

1,00,000

Total

 

17,50,000

 

 

 

II. Assets

 

 

1. Non-Current Assets

 

 

a. Fixed Assets

 

 

i) Tangible Assets

6

10,00,000

ii) Intangible Assets

7

2,00,000

b. Non-Current Investments

8

2,00,000

2. Current Assets

 

 

a. Inventories

9

1,00,000

b. Trade Receivables

10

2,50,000

Total

 

17,50,000

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Share Capital

 

 

1,00,000 Equity Shares of Rs 10 each

10,00,000

 

 

 

2

Reserves and Surplus

 

 

General Reserve

2,00,000

 

 

Less: Discount on Issue of Debenture

(5,000)

1,95,000

 

 

 

3

Long-term Borrowings

 

 

12% Debentures

2,00,000

 

Bank Loan

1,00,000

 

 

3,00,000

 

 

 

4

Short-term Provisions

 

 

Provision for Tax

55,000

 

Proposed Dividend

1,00,000

 

 

1,55,000

 

 

 

5

Trade Payables

 

 

Creditors

1,00,000

 

 

 

6

Tangible Assets

 

 

Land and Building

2,00,000

 

Plant and Machinery

8,00,000

 

 

10,00,000

 

 

 

7

Intangible Assets

 

 

Goodwill

2,00,000

 

 

 

8

Non-Current Investments

 

 

Shares of Raja Ltd.

2,00,000

 

 

 

9

Inventories

 

 

Stock-in-Trade

1,00,000

 

 

 

10

Trade Receivables

 

 

Debtors

1,50,000

 

Bills Receivables

1,00,000

 

 

2,50,000

 

 

 

Note: Discount on Issue of Debentures has been adjusted against General Reserve

Page No 1.73:

Question 52:

Balance Sheet

as at March 31, 2014

Particulars

Note No.

Amount

(Rs)

I Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

10,00,000

b. Reserves and Surplus

2

1,95,000

2. Non-Current Liabilities

 

 

Long-term Borrowings

3

3,00,000

3. Current Liabilities

 

 

a. Short-term Provisions

4

1,55,000

b. Trade Payables

5

1,00,000

Total

 

17,50,000

 

 

 

II. Assets

 

 

1. Non-Current Assets

 

 

a. Fixed Assets

 

 

i) Tangible Assets

6

10,00,000

ii) Intangible Assets

7

2,00,000

b. Non-Current Investments

8

2,00,000

2. Current Assets

 

 

a. Inventories

9

1,00,000

b. Trade Receivables

10

2,50,000

Total

 

17,50,000

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Share Capital

 

 

1,00,000 Equity Shares of Rs 10 each

10,00,000

 

 

 

2

Reserves and Surplus

 

 

General Reserve

2,00,000

 

 

Less: Discount on Issue of Debenture

(5,000)

1,95,000

 

 

 

3

Long-term Borrowings

 

 

12% Debentures

2,00,000

 

Bank Loan

1,00,000

 

 

3,00,000

 

 

 

4

Short-term Provisions

 

 

Provision for Tax

55,000

 

Proposed Dividend

1,00,000

 

 

1,55,000

 

 

 

5

Trade Payables

 

 

Creditors

1,00,000

 

 

 

6

Tangible Assets

 

 

Land and Building

2,00,000

 

Plant and Machinery

8,00,000

 

 

10,00,000

 

 

 

7

Intangible Assets

 

 

Goodwill

2,00,000

 

 

 

8

Non-Current Investments

 

 

Shares of Raja Ltd.

2,00,000

 

 

 

9

Inventories

 

 

Stock-in-Trade

1,00,000

 

 

 

10

Trade Receivables

 

 

Debtors

1,50,000

 

Bills Receivables

1,00,000

 

 

2,50,000

 

 

 

Note: Discount on Issue of Debentures has been adjusted against General Reserve

Answer:

Balance Sheet

as at March 31, 2014

Particulars

Note No.

Amount

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

40,000

b. Reserves and Surplus

2

21,620

2. Non-Current Liabilities

 

 

Long-term Borrowings

3

9,000

3. Current Liabilities

 

 

a. Trade Payables

4

7,430

b. Short-term Provisions

5

4,000

Total

 

82,050

 

 

 

II. Assets

 

 

1. Non-Current Assets

 

 

a. Fixed Assets

 

 

i) Tangible Assets

6

38,200

b. Non-Current Investments

 

 

2.Current Assets

 

 

a. Inventories

7

12,920

b. Trade Receivables

8

15,900

c. Cash and Cash Equivalents

9

15,030

Total

 

82,050

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Share Capital

 

 

Authorised Capital:

 

 

10,000 shares of Rs 10 each

1,00,000

 

Issued Capital:

 

 

4,000 shares of Rs 10 each

40,000

 

Subscribed and fully paid-up:

 

 

4,000 shares of Rs 10 each

40,000

 

 

 

2

Reserves and Surplus

 

 

General Reserve:

 

 

Opening Balance

8,000

 

Add: Transfer from Balance of Statement of Profit and Loss

10,000

 

Securities Premium Reserve

4,000

 

Statement of Profit and Loss

 

 

Opening Balance

3,420

 

 

Profit for the year

10,200

 

 

Less: Appropriations

 

 

General Reserve

(10,000)

 

 

Proposed Dividend (40,000 × 10%)

(4,000)

(380)

 

Balance of Statement of Profit and Loss (Credit)

21,620

 

 

 

3

Long-term Borrowings

 

 

6% Debentures

9,000

 

 

 

4

Trade Payables

 

 

Creditors

7,430

 

 

 

5

Short-term Provisions

 

 

Proposed Dividend

4,000

 

 

 

6

Tangible Assets

 

 

Machinery (Cost)

20,000

 

 

Less: Provision for Depreciation

(5,000)

15,000

 

Fixtures (Cost)

2,200

 

 

Less: Provision for Depreciation

(1,000)

1,200

 

Premises (Cost)

22,000

 

 

38,200

 

 

 

7

Inventories

 

 

Stock-in-Trade

12,920

 

 

 

8

Trade Receivables

 

 

Debtors

16,150

 

 

Less: Provision for Doubtful Debts

(250)

15,900

 

 

 

9

Cash and Cash Equivalents

 

 

Cash at Bank

15,030

 

 

 

 



Page No 1.74:

Question 53:

Balance Sheet

as at March 31, 2014

Particulars

Note No.

Amount

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

40,000

b. Reserves and Surplus

2

21,620

2. Non-Current Liabilities

 

 

Long-term Borrowings

3

9,000

3. Current Liabilities

 

 

a. Trade Payables

4

7,430

b. Short-term Provisions

5

4,000

Total

 

82,050

 

 

 

II. Assets

 

 

1. Non-Current Assets

 

 

a. Fixed Assets

 

 

i) Tangible Assets

6

38,200

b. Non-Current Investments

 

 

2.Current Assets

 

 

a. Inventories

7

12,920

b. Trade Receivables

8

15,900

c. Cash and Cash Equivalents

9

15,030

Total

 

82,050

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Share Capital

 

 

Authorised Capital:

 

 

10,000 shares of Rs 10 each

1,00,000

 

Issued Capital:

 

 

4,000 shares of Rs 10 each

40,000

 

Subscribed and fully paid-up:

 

 

4,000 shares of Rs 10 each

40,000

 

 

 

2

Reserves and Surplus

 

 

General Reserve:

 

 

Opening Balance

8,000

 

Add: Transfer from Balance of Statement of Profit and Loss

10,000

 

Securities Premium Reserve

4,000

 

Statement of Profit and Loss

 

 

Opening Balance

3,420

 

 

Profit for the year

10,200

 

 

Less: Appropriations

 

 

General Reserve

(10,000)

 

 

Proposed Dividend (40,000 × 10%)

(4,000)

(380)

 

Balance of Statement of Profit and Loss (Credit)

21,620

 

 

 

3

Long-term Borrowings

 

 

6% Debentures

9,000

 

 

 

4

Trade Payables

 

 

Creditors

7,430

 

 

 

5

Short-term Provisions

 

 

Proposed Dividend

4,000

 

 

 

6

Tangible Assets

 

 

Machinery (Cost)

20,000

 

 

Less: Provision for Depreciation

(5,000)

15,000

 

Fixtures (Cost)

2,200

 

 

Less: Provision for Depreciation

(1,000)

1,200

 

Premises (Cost)

22,000

 

 

38,200

 

 

 

7

Inventories

 

 

Stock-in-Trade

12,920

 

 

 

8

Trade Receivables

 

 

Debtors

16,150

 

 

Less: Provision for Doubtful Debts

(250)

15,900

 

 

 

9

Cash and Cash Equivalents

 

 

Cash at Bank

15,030

 

 

 

 

Answer:

Balance Sheet

as at 31st March, 2014

Particulars

Note No.

Amount

(Rs in ‘000)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

 

2,500

b. Reserves and Surplus

 

1,000

2. Share Application Money Pending Allotment

 

200

3. Non-Current Liabilities

 

 

a. Long-term Borrowings (10% Debentures)

 

600

b. Other Long-term Liabilities

 

500

c. Long-term Provisions

 

150

4. Current Liabilities

 

 

a. Trade Payables

 

375

b. Short-term Provisions

 

100

c. Other Current Liabilities

 

250

Total

 

5,675

 

 

 

II. Assets

 

 

1. Non-Current Assets

 

 

a. Fixed Assets

 

 

i) Tangible Assets

 

1,600

ii) Intangible Assets

 

550

iii) Intangible Assets Under Development

 

100

iv) Capital Work-in-Progress

 

575

b. Non-Current Investments

 

 

2. Current Assets

 

 

a. Trade Receivables

 

600

b. Inventories

 

250

c. Other Current Assets

 

1,000

d. Cash and Cash Equivalents

 

1,000

Total

 

5,675

 

 

 

 



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