Chapter 9 from Textbook Double Entry Book Keeping Ts Grewal (2017) for Class 12 ACCOUNTANCY

Question 1:

Answer:

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

Question 2:

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.

Question 3:

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:

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

Question 4:

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:

Item	Head
1. Debentures	Long-term Borrowings
2. Encashable Leave Payable at the time of Retirement	Long-term Provisions
3. Tax Reserve	Reserves and Surplus

Question 5:

Item	Head
1. Debentures	Long-term Borrowings
2. Encashable Leave Payable at the time of Retirement	Long-term Provisions
3. Tax Reserve	Reserves and Surplus

Answer:

S. No.	Items	Main Head	Sub-Head
1	Bills Receivable	Current Assets	Trade Receivables
2	Loose Tools	Current Assets	Inventories
3	Unclaimed Dividend	Current Liabilities	Other Current Liabilities

Question 6:

S. No.	Items	Main Head	Sub-Head
1	Bills Receivable	Current Assets	Trade Receivables
2	Loose Tools	Current Assets	Inventories
3	Unclaimed Dividend	Current Liabilities	Other Current Liabilities

Answer:

The following are the item with the heads and sub-heads listed in the Asset Side of Balance Sheet :

a. Loans and Advances (Long-Term) as Long-term Loans and Advances (Non-Current Assets)

b. Tangible Fixed Assets shown under Fixed Assets (Non-Current Assets).

c. Investments (Trade) as Non-Current Investments (Non-Current Assets).

d. Inventories as Current Assets.

Question 7:

The following are the item with the heads and sub-heads listed in the Asset Side of Balance Sheet :

a. Loans and Advances (Long-Term) as Long-term Loans and Advances (Non-Current Assets)

b. Tangible Fixed Assets shown under Fixed Assets (Non-Current Assets).

c. Investments (Trade) as Non-Current Investments (Non-Current Assets).

d. Inventories as Current Assets.

Answer:

S. No.	Items	Main Head	Sub-Head
1	Loose Tools	Current Assets	Inventories
2	Bills Receivable	Current Assets	Trade Receivables
3	Sundry Debtors	Current Assets	Trade Receivables
4	Livestock	Non-Current Assets	Tangible Fixed Assets
5	Advances Recoverable in Cash	Current Assets	Short-term Loans and Advances

Question 8:

S. No.	Items	Main Head	Sub-Head
1	Loose Tools	Current Assets	Inventories
2	Bills Receivable	Current Assets	Trade Receivables
3	Sundry Debtors	Current Assets	Trade Receivables
4	Livestock	Non-Current Assets	Tangible Fixed Assets
5	Advances Recoverable in Cash	Current Assets	Short-term Loans and Advances

Answer:

S. No.	Items	Main Head	Sub-Head
1	Debentures	Non-Current Liabilities	Long-term Borrowings
2	Interest Accrued on Investments	Current Assets	Other Current Assets
3	Goodwill	Non-Current Assets	Intangible Fixed Assets
4	Bills of Exchange	Current Assets	Trade Receivables

Question 9:

S. No.	Items	Main Head	Sub-Head
1	Debentures	Non-Current Liabilities	Long-term Borrowings
2	Interest Accrued on Investments	Current Assets	Other Current Assets
3	Goodwill	Non-Current Assets	Intangible Fixed Assets
4	Bills of Exchange	Current Assets	Trade Receivables

Answer:

S. No.	Items	Main Head
1	Securities Premium Reserve	Reserves and Surplus
2	Bills Receivable	Trade Receivables
3	Authorised Capital	Share Capital
4	Goodwill	Intangible Fixed Assets

Question 10:

S. No.	Items	Main Head
1	Securities Premium Reserve	Reserves and Surplus
2	Bills Receivable	Trade Receivables
3	Authorised Capital	Share Capital
4	Goodwill	Intangible Fixed Assets

Answer:

S. No.	Items	Main Head
1	Authorised Capital	Share Capital
2	Forfeited Shares Account	Share Capital
3	Capital Reserve	Reserves and Surplus
4	Secured Debentures	Long-term Borrowings
5	Provision for Tax	Short-term Provisions
6	Unclaimed Dividend	Other Current Liabilities

Question 11:

S. No.	Items	Main Head
1	Authorised Capital	Share Capital
2	Forfeited Shares Account	Share Capital
3	Capital Reserve	Reserves and Surplus
4	Secured Debentures	Long-term Borrowings
5	Provision for Tax	Short-term Provisions
6	Unclaimed Dividend	Other Current Liabilities

Answer:

ITEMS	HEAD	SUB-HEAD
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

Question 12:

ITEMS	HEAD	SUB-HEAD
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:

Item	Head	Sub-head
i. Bank Balance	Current Assets	Cash and Cash Equivalents
ii. Investments (Long-Term)	Non-Current Assets	Non-Current Investments
iii. Outstanding Salary	Current Liabilities	Other Current Liabilities
iv. Authorised Capital	Shareholders’ Fund	Share Capital
v. Bills Payable	Current Liabilities	Trade Payables
vi. Unclaimed Dividends	Current Liabilities	Other Current Liabilities
vii. Shares option Outstanding Account	Shareholder’s Fund	Reserves and Surplus
viii. General Reserve	Shareholder’s Fund	Reserves and Surplus
ix. Subsidy Reserve	Shareholder’s Fund	Reserves and Surplus
x. Provision for Doubtful Debts	Current Liabilities	Short-Term Provisions

Question 13:

Item	Head	Sub-head
i. Bank Balance	Current Assets	Cash and Cash Equivalents
ii. Investments (Long-Term)	Non-Current Assets	Non-Current Investments
iii. Outstanding Salary	Current Liabilities	Other Current Liabilities
iv. Authorised Capital	Shareholders’ Fund	Share Capital
v. Bills Payable	Current Liabilities	Trade Payables
vi. Unclaimed Dividends	Current Liabilities	Other Current Liabilities
vii. Shares option Outstanding Account	Shareholder’s Fund	Reserves and Surplus
viii. General Reserve	Shareholder’s Fund	Reserves and Surplus
ix. Subsidy Reserve	Shareholder’s Fund	Reserves and Surplus
x. Provision for Doubtful Debts	Current Liabilities	Short-Term Provisions

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	Notes to Accounts	Commitments in Notes to Accounts

Question 14:

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	Notes to Accounts	Commitments in Notes to Accounts

Answer:

Item	Sub-Head	Main Head
i. Public Deposits	Long-Term Borrowings	Non-Current Liabilities
ii. Office Furniture	Fixed Assets (Tangible Assets)	Non-Current Assets
iii. Prepaid Rent	Other Current Assets	Current Assets
iv. Outstanding Salaries	Other Current Liabilities	Current Liabilities
v. Computer Software	Fixed Assets (Intangible Assets)	Non-Current Assets
vi. Interest Accrued on Investments	Other Current Assets	Current Assets
vii. Bills Discounted but not Matured	Contingent Liabilities (to be shown in Notes to Accounts)	-
viii. Premium Payable on Redemption of Debentures	Long-Term Borrowings	Non-Current Liabilities

Question 15:

Item	Sub-Head	Main Head
i. Public Deposits	Long-Term Borrowings	Non-Current Liabilities
ii. Office Furniture	Fixed Assets (Tangible Assets)	Non-Current Assets
iii. Prepaid Rent	Other Current Assets	Current Assets
iv. Outstanding Salaries	Other Current Liabilities	Current Liabilities
v. Computer Software	Fixed Assets (Intangible Assets)	Non-Current Assets
vi. Interest Accrued on Investments	Other Current Assets	Current Assets
vii. Bills Discounted but not Matured	Contingent Liabilities (to be shown in Notes to Accounts)	-
viii. Premium Payable on Redemption of Debentures	Long-Term Borrowings	Non-Current Liabilities

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

Question 16:

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:

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
a. Short-term Provisions	2	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

2	Short-term Provisions
	Proposed Dividend		25,000

Question 17:

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
a. Short-term Provisions	2	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

2	Short-term Provisions
	Proposed Dividend		25,000

Answer:

Extract of Balance Sheet as at March 31, 2015
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

Question 18:

Extract of Balance Sheet as at March 31, 2015
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 March 31, 2017
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

Question 19:

Balance Sheet as at March 31, 2017
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, 2016
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

Question 20:

Balance Sheet as at March 31, 2016
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, 2017
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	3,00,000
b. Reserves and Surplus	2	22,000
2. Non-Current Liabilities		–
3. Current Liabilities
a. Trade Payables	3	20,000
b. Short-term Provisions	4	36,000
Total		3,78,000
II. Assets
1. Non-Current Assets
a. Fixed Assets
i) Tangible Assets	5	94,000
ii) Non-Current Investments
2. Current Assets
a. Inventories	6	1,60,000
b. Trade Receivables	7	80,000
c. Cash and Cash Equivalents	8	44,000
Total		3,78,000

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	20,000 Equity Shares of Rs 10 each		2,00,000
	10,000 Preference Shares of Rs 10 each		1,00,000
			3,00,000
2	Reserves and Surplus
	Transfer to General Reserve		10,000
	Statement of Profit and Loss:
	Profit for the year	58,000
	Less: Appropriations
	Transfer to General Reserve	(10,000)
	Proposed Dividend
	Equity	(30,000)
	Preference	(6,000)	12,000
	Balance of Statement of Profit and Loss (Credit)		22,000

3	Trade Payables
	Creditors		20,000

4	Short-term Provisions
	Proposed Dividend		36,000

5	Tangible Assets
	Machinery (cost)	35,000
	Less: Provision for Depreciation	(7,000)	28,000
	Premises (Cost)		60,000
	Office Furniture		6,000
			94,000
6	Inventories
	Stock		1,60,000

7	Trade Receivables
	Debtors		80,000

8	Cash and Cash Equivalents
	Cash at Bank		44,000

Question 21:

Balance Sheet as at March 31, 2017
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	3,00,000
b. Reserves and Surplus	2	22,000
2. Non-Current Liabilities		–
3. Current Liabilities
a. Trade Payables	3	20,000
b. Short-term Provisions	4	36,000
Total		3,78,000
II. Assets
1. Non-Current Assets
a. Fixed Assets
i) Tangible Assets	5	94,000
ii) Non-Current Investments
2. Current Assets
a. Inventories	6	1,60,000
b. Trade Receivables	7	80,000
c. Cash and Cash Equivalents	8	44,000
Total		3,78,000

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	20,000 Equity Shares of Rs 10 each		2,00,000
	10,000 Preference Shares of Rs 10 each		1,00,000
			3,00,000
2	Reserves and Surplus
	Transfer to General Reserve		10,000
	Statement of Profit and Loss:
	Profit for the year	58,000
	Less: Appropriations
	Transfer to General Reserve	(10,000)
	Proposed Dividend
	Equity	(30,000)
	Preference	(6,000)	12,000
	Balance of Statement of Profit and Loss (Credit)		22,000

3	Trade Payables
	Creditors		20,000

4	Short-term Provisions
	Proposed Dividend		36,000

5	Tangible Assets
	Machinery (cost)	35,000
	Less: Provision for Depreciation	(7,000)	28,000
	Premises (Cost)		60,000
	Office Furniture		6,000
			94,000
6	Inventories
	Stock		1,60,000

7	Trade Receivables
	Debtors		80,000

8	Cash and Cash Equivalents
	Cash at Bank		44,000

Answer:

Balance Sheet as at March 31, 2017
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

Question 22:

Balance Sheet as at March 31, 2017
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, 2017
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	2,40,000
b. Reserves and Surplus	2	1,86,000
2. Non-Current Liabilities
Long-term Borrowings	3	1,20,000
3. Current Liabilities
a. Other Current Liabilities	4	1,97,400
b. Short-term Provisions	5	90,000
Total		8,33,400
II. Assets
1. Non-Current Assets
a. Fixed Assets
i) Tangible Assets	6	4,20,000
b. Non-Current Investments	7	1,14,000
c. Long-term Loans and Advances	8	6,000
2. Current Assets
a. Other Current Assets	9	2,93,400
Total		8,33,400

*NOTES TO ACCOUNTS*
Note No.	Particulars			Amount (Rs)
1	Share Capital
	2,400 Equity Shares of Rs 100 each			2,40,000

2	Reserves and Surplus
	Reserves		1,98,000
	Less: Underwriting Commission		(12,000)	1,86,000

3	Long-term Borrowings
	Secured Loans			90,000
	Unsecured Loans			30,000
				1,20,000
4	Other Current Liabilities
	Current Liabilities			1,97,400

5	Short-term Provisions
	Provision for Taxation			90,000

6	Tangible Assets
	Fixed Assets (Cost)	5,46,000
	Less: Provision for Depreciation	(1,26,000)		4,20,000

7	Non-Current Investments
	Investments			1,14,000

8	Long-term Loans and Advances
	Loans and Advances			6,000

9	Other Current Assets
	Current Assets			2,93,400

Question 23:

Balance Sheet as at March 31, 2017
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	2,40,000
b. Reserves and Surplus	2	1,86,000
2. Non-Current Liabilities
Long-term Borrowings	3	1,20,000
3. Current Liabilities
a. Other Current Liabilities	4	1,97,400
b. Short-term Provisions	5	90,000
Total		8,33,400
II. Assets
1. Non-Current Assets
a. Fixed Assets
i) Tangible Assets	6	4,20,000
b. Non-Current Investments	7	1,14,000
c. Long-term Loans and Advances	8	6,000
2. Current Assets
a. Other Current Assets	9	2,93,400
Total		8,33,400

*NOTES TO ACCOUNTS*
Note No.	Particulars			Amount (Rs)
1	Share Capital
	2,400 Equity Shares of Rs 100 each			2,40,000

2	Reserves and Surplus
	Reserves		1,98,000
	Less: Underwriting Commission		(12,000)	1,86,000

3	Long-term Borrowings
	Secured Loans			90,000
	Unsecured Loans			30,000
				1,20,000
4	Other Current Liabilities
	Current Liabilities			1,97,400

5	Short-term Provisions
	Provision for Taxation			90,000

6	Tangible Assets
	Fixed Assets (Cost)	5,46,000
	Less: Provision for Depreciation	(1,26,000)		4,20,000

7	Non-Current Investments
	Investments			1,14,000

8	Long-term Loans and Advances
	Loans and Advances			6,000

9	Other Current Assets
	Current Assets			2,93,400

Answer:

Balance Sheet as at March 31, 2017
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	13,00,000
b. Reserves and Surplus	2	31,67,000
2. Non-Current Liabilities
a. Long-term Borrowings	3	20,00,000
3. Current Liabilities
a. Short Term Borrowings	4	2,00,000
b. Trade Payables	5	18,45,000
c. Other Current Liabilities	6	1,70,000
d. Short-term Provisions	7	20,200
Total		87,02,200
II Assets
1. Non-Current Assets
a. Fixed Assets
i) Tangible Assets	8	51,50,000
ii) Capital Work-in-Progress		2,00,000
b. Non-Current Investments		2,25,200
c. Long Term Loans and Advances	9	3,72,000
2. Current Assets
a. Inventories	10	12,00,000
b. Trade Receivables	11	12,25,000
c. Cash and Cash Equivalents	12	2,75,000
d. Short-term Loans and Advances		55,000
Total		87,02,200

*NOTES TO ACCOUNTS*
Note No.	Particulars	Amount (Rs)
1	Share Capital
	3,000 Equity Shares of Rs 100 each	3,00,000
	10,000, 10% Preference Shares of Rs 100 each	10,00,000
		13,00,000
2	Reserves and Surplus
	General Reserve	30,50,000
	Securities Premium Reserve	4,75,000
	Profit & Loss A/c (Loss)	(3,58,000)
		31,67,000
3	Long-term Borrowings
	Term Loan (Secured)	20,00,000

4	Short-term Borrowings
	Loan from Debtors	2,00,000

5	Trade Payables
	Sundry Creditors	18,45,000

6.	Other Current Liabilities
	Taxes Payable	1,70,000

7	Short-term Provisions
	Provision for Doubtful Debts	20,200

8	Tangible Assets
	Fixed Assets	51,50,000
		51,50,000
9	Long Term Loan and Advances
	Advances	3,72,000
10	Inventories
	Stores	4,00,000
	Finished Goods	7,50,000
	Loose Tools	50,000
		12,00,000
11	Trade Receivables
	Sundry Debtors	12,25,000

12	Cash and Cash Equivalents
	Cash and Bank Balances	2,75,000

Note: The total of balance sheet given in the textbook is Rs 86,82,300, however, as per the solution provided it should be Rs 87,02,200.

Question 24:

Balance Sheet as at March 31, 2017
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	13,00,000
b. Reserves and Surplus	2	31,67,000
2. Non-Current Liabilities
a. Long-term Borrowings	3	20,00,000
3. Current Liabilities
a. Short Term Borrowings	4	2,00,000
b. Trade Payables	5	18,45,000
c. Other Current Liabilities	6	1,70,000
d. Short-term Provisions	7	20,200
Total		87,02,200
II Assets
1. Non-Current Assets
a. Fixed Assets
i) Tangible Assets	8	51,50,000
ii) Capital Work-in-Progress		2,00,000
b. Non-Current Investments		2,25,200
c. Long Term Loans and Advances	9	3,72,000
2. Current Assets
a. Inventories	10	12,00,000
b. Trade Receivables	11	12,25,000
c. Cash and Cash Equivalents	12	2,75,000
d. Short-term Loans and Advances		55,000
Total		87,02,200

*NOTES TO ACCOUNTS*
Note No.	Particulars	Amount (Rs)
1	Share Capital
	3,000 Equity Shares of Rs 100 each	3,00,000
	10,000, 10% Preference Shares of Rs 100 each	10,00,000
		13,00,000
2	Reserves and Surplus
	General Reserve	30,50,000
	Securities Premium Reserve	4,75,000
	Profit & Loss A/c (Loss)	(3,58,000)
		31,67,000
3	Long-term Borrowings
	Term Loan (Secured)	20,00,000

4	Short-term Borrowings
	Loan from Debtors	2,00,000

5	Trade Payables
	Sundry Creditors	18,45,000

6.	Other Current Liabilities
	Taxes Payable	1,70,000

7	Short-term Provisions
	Provision for Doubtful Debts	20,200

8	Tangible Assets
	Fixed Assets	51,50,000
		51,50,000
9	Long Term Loan and Advances
	Advances	3,72,000
10	Inventories
	Stores	4,00,000
	Finished Goods	7,50,000
	Loose Tools	50,000
		12,00,000
11	Trade Receivables
	Sundry Debtors	12,25,000

12	Cash and Cash Equivalents
	Cash and Bank Balances	2,75,000

Note: The total of balance sheet given in the textbook is Rs 86,82,300, however, as per the solution provided it should be Rs 87,02,200.

Answer:

Balance Sheet as at 31^st March, 2017
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

Question 25:

Balance Sheet as at 31^st March, 2017
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

Answer:

Balance Sheet of Rama Ltd. as at March 31, 2017
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	10,00,000
b. Reserves and Surplus	2	1,50,000
2. Non-Current Liabilities
a. Long-term Borrowings	3	5,00,000
3. Current Liabilities
a. Trade Payables	4	2,00,000
b. Short-term Provisions	5	50,000
Total		19,00,000
II Assets
1. Non-Current Assets
a. Fixed Assets
i) Tangible Assets	6	9,00,000
ii) Capital Work-In-Progress		3,50,000
b. Non-Current Investments	7	6,00,000
2. Current Assets
a. Cash and Cash Equivalents	8	50,000
Total		19,00,000

*NOTES TO ACCOUNTS*
Note No.	Particulars	Amount (Rs)
1	Share Capital
	1,00,000 Equity Shares of Rs 10 each (Out of above, 15,000 shares of Rs 10 each issued for consideration other than cash)	10,00,000
		10,00,000
2	Reserves and Surplus
	Securities Premium Reserve	2,00,000
	Profit and Loss A/c (Loss)	(50,000)
		1,50,000
3	Long Term Borrowings
	12% Debentures	5,00,000

4	Trade Payables
	Creditors	2,00,000

5	Short-term Provisions
	Proposed Dividend	50,000

6	Tangible Assets
	Land & Building	9,00,000
		9,00,000
7	Non Current Investments
	Government Bonds	6,00,000

8	Cash and Cash Equivalents
	Cash at Bank	50,000

Question 26:

Balance Sheet of Rama Ltd. as at March 31, 2017
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	10,00,000
b. Reserves and Surplus	2	1,50,000
2. Non-Current Liabilities
a. Long-term Borrowings	3	5,00,000
3. Current Liabilities
a. Trade Payables	4	2,00,000
b. Short-term Provisions	5	50,000
Total		19,00,000
II Assets
1. Non-Current Assets
a. Fixed Assets
i) Tangible Assets	6	9,00,000
ii) Capital Work-In-Progress		3,50,000
b. Non-Current Investments	7	6,00,000
2. Current Assets
a. Cash and Cash Equivalents	8	50,000
Total		19,00,000

*NOTES TO ACCOUNTS*
Note No.	Particulars	Amount (Rs)
1	Share Capital
	1,00,000 Equity Shares of Rs 10 each (Out of above, 15,000 shares of Rs 10 each issued for consideration other than cash)	10,00,000
		10,00,000
2	Reserves and Surplus
	Securities Premium Reserve	2,00,000
	Profit and Loss A/c (Loss)	(50,000)
		1,50,000
3	Long Term Borrowings
	12% Debentures	5,00,000

4	Trade Payables
	Creditors	2,00,000

5	Short-term Provisions
	Proposed Dividend	50,000

6	Tangible Assets
	Land & Building	9,00,000
		9,00,000
7	Non Current Investments
	Government Bonds	6,00,000

8	Cash and Cash Equivalents
	Cash at Bank	50,000

Answer:

In the Books of Ell Kay Ltd.
Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

	Office Machinery A/c	Dr.		11,50,000
	To Excel Ltd A/c				11,50,000
	(Office Machinery purchased)

	Excel Ltd. A/c	Dr.		11,50,000
	To Bank A/c				50,000
	To 15 % Preference Shares				10,00,000
	To Securities Premium Reserve A/c				1,00,000
	(Settlement of account of vendor)

	Bank A/c (5 × 5,00,000)	Dr.		25,00,000
	To Equity Share Application A/c				25,00,000
	(Application money received for 5,00,000 shares @ Rs 5)

	Equity Share Application A/c (5 × 5,00,000)	Dr.		25,00,000
	To Equity Share Capital A/c (5 × 2,00,000)				10,00,000
	To Equity Share Allotment A/c				15,00,000
	(Application money transferred to Share Capital Account and excess adjusted towards allotment)

	Equity Share Allotment A/c (8 × 2,00,000)	Dr.		16,00,000
	To Equity Share Capital A/c (3 × 2,00,000)				6,00,000
	To Securities Premium Reserve A/c (5 × 2,00,000)				10,00,000

	Bank A/c	Dr.		99,500
	Calls in Arrears A/c	Dr.		500
	To Equity Share Allotment A/c				1,00,000
	(Amount received on all shares except from Anil)

	Equity Share Final Call A/c (2 × 2,00,000)	Dr.		4,00,000
	To Equity Share Capital A/c (2 × 2,00,000)				4,00,000

	Bank A/c	Dr.		3,94,000
	Calls in Arrears A/c (1,000 × 2) + (2,000 × 2)	Dr.		6,000
	To Equity Share Final Call A/c				4,00,000
	(Amount received on all shares except from Anil and Gopal)

	Share Capital A/c	Dr.		10,000
	Securities Premium Reserve A/c	Dr.		5,000
	To Calls-in-Arrears A/c				2,500
	To Share Forfeiture A/c				12,500
	(1,000 shares forfeited)
	Bank A/c	Dr.		7,500
	To Share Capital A/c				5,000
	To Securities Premium Reserve A/c				2,500
	(Reissue of 500 forfeited shares)

	Forfeited Shares A/c	Dr.		6,250
	To Capital Reserve A/c				6,250
	(Gain on Reissue transferred)

	Bank A/c	Dr.		20,00,000
	To 10% Pref. Share Application A/c				20,00,000
	(Application money received for 40,000 shares @ Rs 50)

	10% Pref. Share Application A/c	Dr.		20,00,000
	To 10% Pref. Share Capital A/c (50 × 25,000)				12,50,000
	To Bank A/c				7,50,000
	(Application money transferred to Share Capital Account and excess refunded)

	10% Pref. Share Allotment A/c (30 × 25,000)	Dr.		7,50,000
	To Equity Share Capital A/c (30 × 25,000)				7,50,000
	(Allotment due on Pref. Shares)

	Bank A/c	Dr.		7,65,000
	To 10% Pref. Share Allotment A/c				7,50,000
	To Calls in Advance A/c (20 × 500)				10,000
	(Amount received on all shares plus final call on 500 shares)

	Preference Share Final Call A/c (20 × 25,000)	Dr.		5,00,000
	To 10% Pref. Share Capital A/c				5,00,000
	(Share final call money due)

	Bank A/c (23,500 × 20)	Dr.		4,70,000
	Calls in Arrears A/c (1,000 × 20)	Dr.		20,000
	Calls in Advance A/c (500 × 20)			10,000
	To 10% Pref. Share Final Call A/c				5,00,000
	(Amount received on all shares except from Amit)

Dr.	Calls in Arrears Account					Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
	Eq. Share Allotment A/c	500		Share Capital A/c	2,500
	Eq. Share Final Call A/c	6,000		Balance c/d	24,000
	10% Pref. Share Final Call A/c	20,000
		26,500			26,500

Dr.	Calls in Advance Account					Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
	10% Pref. Share Final Call A/c	10,000		Bank A/c	10,000
		10,000			10,000

Balance Sheet
Particulars	Note No.	Figures at the end of current reporting period
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	64,77,750
b. Reserves and Surplus	2	11,03,750
Total		75,81,000

II Assets
1. Non-Current Assets
Fixed Assets	3	11,50,000
2. Current Assets
Cash and Cash Equivalents	4	64,31,000
Total		75,81,000

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Capital
	5,00,000 Equity Shares of Rs 10 each		50,00,000
	50,000 Preference Shares of Rs 100 each		50,00,000
			1,00,00,000
	Issued, Paid up and Subscribed Capital
	50,000 Equity Shares of Rs 10 each		5,00,000
	5,000, 10% Preference Shares of Rs 100 each		5,00,000
	10,000, 15% Preference Shares of Rs 100 each		10,00,000
	25,000 10% Preference Shares of Rs 100 each		25,00,000
	1,99,500 Equity Shares of Rs 10 each	19,95,000
	Less: Calls in Arrears*	(24,000)
	Add: Share Forfeiture	6,250	19,77,250
			64,77,250

2	Reserves and Surplus
	Capital Reserve		6,250
	Securities Premium Reserve		10,97,500
			11,03,750

3	Fixed Assets
	Tangible Assets- Machinery		11,50,000

8	Cash and Cash Equivalents
	Cash at Bank		64,31,000

$Number of Shares Applied by Anil : \frac{5, 00, 000}{2, 00, 000} \times 1, 000 = 2, 500 Shares Surplus paid at the time of application = (2, 500 - 1, 000) \times 5 = Rs 7, 500 Amount due on Allotment = Rs (8 \times 1, 000) = Rs 8, 000 ∴ Calls in Arrears are Rs 500$

Question 27:

In the Books of Ell Kay Ltd.
Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

	Office Machinery A/c	Dr.		11,50,000
	To Excel Ltd A/c				11,50,000
	(Office Machinery purchased)

	Excel Ltd. A/c	Dr.		11,50,000
	To Bank A/c				50,000
	To 15 % Preference Shares				10,00,000
	To Securities Premium Reserve A/c				1,00,000
	(Settlement of account of vendor)

	Bank A/c (5 × 5,00,000)	Dr.		25,00,000
	To Equity Share Application A/c				25,00,000
	(Application money received for 5,00,000 shares @ Rs 5)

	Equity Share Application A/c (5 × 5,00,000)	Dr.		25,00,000
	To Equity Share Capital A/c (5 × 2,00,000)				10,00,000
	To Equity Share Allotment A/c				15,00,000
	(Application money transferred to Share Capital Account and excess adjusted towards allotment)

	Equity Share Allotment A/c (8 × 2,00,000)	Dr.		16,00,000
	To Equity Share Capital A/c (3 × 2,00,000)				6,00,000
	To Securities Premium Reserve A/c (5 × 2,00,000)				10,00,000

	Bank A/c	Dr.		99,500
	Calls in Arrears A/c	Dr.		500
	To Equity Share Allotment A/c				1,00,000
	(Amount received on all shares except from Anil)

	Equity Share Final Call A/c (2 × 2,00,000)	Dr.		4,00,000
	To Equity Share Capital A/c (2 × 2,00,000)				4,00,000

	Bank A/c	Dr.		3,94,000
	Calls in Arrears A/c (1,000 × 2) + (2,000 × 2)	Dr.		6,000
	To Equity Share Final Call A/c				4,00,000
	(Amount received on all shares except from Anil and Gopal)

	Share Capital A/c	Dr.		10,000
	Securities Premium Reserve A/c	Dr.		5,000
	To Calls-in-Arrears A/c				2,500
	To Share Forfeiture A/c				12,500
	(1,000 shares forfeited)
	Bank A/c	Dr.		7,500
	To Share Capital A/c				5,000
	To Securities Premium Reserve A/c				2,500
	(Reissue of 500 forfeited shares)

	Forfeited Shares A/c	Dr.		6,250
	To Capital Reserve A/c				6,250
	(Gain on Reissue transferred)

	Bank A/c	Dr.		20,00,000
	To 10% Pref. Share Application A/c				20,00,000
	(Application money received for 40,000 shares @ Rs 50)

	10% Pref. Share Application A/c	Dr.		20,00,000
	To 10% Pref. Share Capital A/c (50 × 25,000)				12,50,000
	To Bank A/c				7,50,000
	(Application money transferred to Share Capital Account and excess refunded)

	10% Pref. Share Allotment A/c (30 × 25,000)	Dr.		7,50,000
	To Equity Share Capital A/c (30 × 25,000)				7,50,000
	(Allotment due on Pref. Shares)

	Bank A/c	Dr.		7,65,000
	To 10% Pref. Share Allotment A/c				7,50,000
	To Calls in Advance A/c (20 × 500)				10,000
	(Amount received on all shares plus final call on 500 shares)

	Preference Share Final Call A/c (20 × 25,000)	Dr.		5,00,000
	To 10% Pref. Share Capital A/c				5,00,000
	(Share final call money due)

	Bank A/c (23,500 × 20)	Dr.		4,70,000
	Calls in Arrears A/c (1,000 × 20)	Dr.		20,000
	Calls in Advance A/c (500 × 20)			10,000
	To 10% Pref. Share Final Call A/c				5,00,000
	(Amount received on all shares except from Amit)

Dr.	Calls in Arrears Account					Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
	Eq. Share Allotment A/c	500		Share Capital A/c	2,500
	Eq. Share Final Call A/c	6,000		Balance c/d	24,000
	10% Pref. Share Final Call A/c	20,000
		26,500			26,500

Dr.	Calls in Advance Account					Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
	10% Pref. Share Final Call A/c	10,000		Bank A/c	10,000
		10,000			10,000

Balance Sheet
Particulars	Note No.	Figures at the end of current reporting period
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	64,77,750
b. Reserves and Surplus	2	11,03,750
Total		75,81,000

II Assets
1. Non-Current Assets
Fixed Assets	3	11,50,000
2. Current Assets
Cash and Cash Equivalents	4	64,31,000
Total		75,81,000

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Capital
	5,00,000 Equity Shares of Rs 10 each		50,00,000
	50,000 Preference Shares of Rs 100 each		50,00,000
			1,00,00,000
	Issued, Paid up and Subscribed Capital
	50,000 Equity Shares of Rs 10 each		5,00,000
	5,000, 10% Preference Shares of Rs 100 each		5,00,000
	10,000, 15% Preference Shares of Rs 100 each		10,00,000
	25,000 10% Preference Shares of Rs 100 each		25,00,000
	1,99,500 Equity Shares of Rs 10 each	19,95,000
	Less: Calls in Arrears*	(24,000)
	Add: Share Forfeiture	6,250	19,77,250
			64,77,250

2	Reserves and Surplus
	Capital Reserve		6,250
	Securities Premium Reserve		10,97,500
			11,03,750

3	Fixed Assets
	Tangible Assets- Machinery		11,50,000

8	Cash and Cash Equivalents
	Cash at Bank		64,31,000

$Number of Shares Applied by Anil : \frac{5, 00, 000}{2, 00, 000} \times 1, 000 = 2, 500 Shares Surplus paid at the time of application = (2, 500 - 1, 000) \times 5 = Rs 7, 500 Amount due on Allotment = Rs (8 \times 1, 000) = Rs 8, 000 ∴ Calls in Arrears are Rs 500$

Answer:

Balance Sheet as at March 31, 2016
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	98,000
b. Reserves and Surplus	2	4,370
2. Non-Current Liabilities
a. Long-term Borrowings
3. Current Liabilities
a. Trade Payables	3	900
b. Short-term Provisions	4	9,500
Total		1,12,770

II Assets
1. Non-Current Assets
a. Fixed Assets
Tangible Assets	5	97,400
2. Current Assets
a. Inventories	6	7,000
b. Trade Receivables	7	6,300
c. Cash and Cash Equivalents	8	2,070
Total		1,12,770

*NOTES TO ACCOUNTS*
Note No.	Particulars			Amount (Rs)
1	Share Capital
	Authorised Capital
	10,000 Equity Shares of Rs 10 each			1,00,000
	2,000, 6% Preference Shares of Rs 10 each			20,000
				1,20,000
	Subscribed and Fully Paid-up
	Preference Share Capital (Fully Called)			20,000

	Subscribed but not Fully Paid-up
	Equity Share Capital		80,000
	Less: Calls–in-Arrears		2,000	78,000
				98,000
2	Reserves and Surplus
	Transfer to General Reserve			3,000
	Statement of Profit and Loss:
	Profit for the year	13,570
	Less: Appropriations
	Transfer to General Reserve	3,000
	Proposed Dividend
	Equity	8,000
	Preference	1,200		1,370
	Balance of Statement of Profit and Loss (Credit)			4,370

3	Trade Payables
	Creditors			900

4	Short-term Provisions
	Provision for Doubtful Debts			300
	Proposed Dividend			9,200
				9,500

5	Tangible Assets
	Machinery (cost)	30,000
	Less: Provision for Depreciation	6,000		24,000
	Premises (Cost)			68,000
	Fixture & Fittings	6,000
	Less: Provision for Depreciation	600		5,400
				97,400

6	Inventories
	Stock			7,000

7	Trade Receivables
	Debtors			6,300

8	Cash and Cash Equivalents
	Cash in Hand			70
	Cash at Bank			2,000
				2,070

Question 28:

Balance Sheet as at March 31, 2016
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	98,000
b. Reserves and Surplus	2	4,370
2. Non-Current Liabilities
a. Long-term Borrowings
3. Current Liabilities
a. Trade Payables	3	900
b. Short-term Provisions	4	9,500
Total		1,12,770

II Assets
1. Non-Current Assets
a. Fixed Assets
Tangible Assets	5	97,400
2. Current Assets
a. Inventories	6	7,000
b. Trade Receivables	7	6,300
c. Cash and Cash Equivalents	8	2,070
Total		1,12,770

*NOTES TO ACCOUNTS*
Note No.	Particulars			Amount (Rs)
1	Share Capital
	Authorised Capital
	10,000 Equity Shares of Rs 10 each			1,00,000
	2,000, 6% Preference Shares of Rs 10 each			20,000
				1,20,000
	Subscribed and Fully Paid-up
	Preference Share Capital (Fully Called)			20,000

	Subscribed but not Fully Paid-up
	Equity Share Capital		80,000
	Less: Calls–in-Arrears		2,000	78,000
				98,000
2	Reserves and Surplus
	Transfer to General Reserve			3,000
	Statement of Profit and Loss:
	Profit for the year	13,570
	Less: Appropriations
	Transfer to General Reserve	3,000
	Proposed Dividend
	Equity	8,000
	Preference	1,200		1,370
	Balance of Statement of Profit and Loss (Credit)			4,370

3	Trade Payables
	Creditors			900

4	Short-term Provisions
	Provision for Doubtful Debts			300
	Proposed Dividend			9,200
				9,500

5	Tangible Assets
	Machinery (cost)	30,000
	Less: Provision for Depreciation	6,000		24,000
	Premises (Cost)			68,000
	Fixture & Fittings	6,000
	Less: Provision for Depreciation	600		5,400
				97,400

6	Inventories
	Stock			7,000

7	Trade Receivables
	Debtors			6,300

8	Cash and Cash Equivalents
	Cash in Hand			70
	Cash at Bank			2,000
				2,070

Answer:

Balance Sheet as at March 31, 2015
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
a. Long-term Borrowings	3	3,00,000
3. Current Liabilities
a. Trade Payables	4	1,00,000
b. Short-term Provisions	5	1,55,000
Total		17,50,000

II Assets
1. Non-Current Assets
a. Fixed Assets
Tangible Assets	6	10,00,000
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
	Equity Shares	10,00,000
		10,00,000
2	Reserves and Surplus
	Transfer to General Reserve	2,00,000
	Less: Discount on Issue of 12% Debentures	5,000
		1,95,000
3	Long Terms Borrowings
	12% Debentures	2,00,000
	Bank Loan	1,00,000
		3,00,000
4	Trade Payables
	Creditors	1,00,000

5	Short-term Provisions
	Provision for Taxation	55,000
	Proposed Dividend	1,00,000
		1,55,000

6	Tangible Assets
	Land & Building	2,00,000
	Plant & Machinery	8,00,000
		10,00,000
7	Intangible Assets
	Goodwill	2,00,000
		2,00,000
8	Non-Current Investments
	Investment in shares of Raja Ltd.	2,00,000
		2,00,000
9	Inventories
	Stock	1,00,000

10	Trade Receivables
	Bills Receivable	1,00,000
	Debtors	1,50,000
		2,50,000

Double Entry Book Keeping Ts Grewal (2017) Solutions for Class 12 Commerce Accountancy Chapter 9 - Final Accounts Of Companies Application Of Schedule III, Part I Of The Companies Act, 2013

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