Illustration 15 :
From the following
particulars furnished by Printex Ltd., prepare the Balance Sheet as at 31st
March, 2002 as required by Part I, Schedule VI of the Companies Act. Give notes
at the foot of the Balance Sheet as may be found necessary :
Debit (Rs.)
|
Credit (Rs.)
|
|||
Equity
Capital (face value of Rs. 100)
|
10,00,000
|
|||
Land
|
2,00,000
|
|||
Building
|
3,50,000
|
|||
Plant
and Machinery
|
5,25,000
|
|||
Furniture
|
50,000
|
|||
Calls
in Arrears
|
1,000
|
|||
General
Reserve
|
2,10,000
|
|||
Loan
from State Financial Corporation
|
1,50,000
|
|||
Stock :
|
2,00,000
|
|||
Finished
|
||||
Raw Materials
|
50,000
|
2,50,000
|
||
Sundry
Creditors (for goods and expenses)
|
2,00,000
|
|||
Loans
(unsecured)
|
1,21,000
|
|||
Preliminary
expenses
|
13,300
|
|||
Cash
at Bank
|
2,47,000
|
|||
Cash
Balance
|
30,000
|
|||
Profit
& Loss Account
|
1,00,000
|
|||
Proposed
Dividend
|
60,000
|
|||
Advances
|
42,700
|
|||
Sundry
Debtors
|
2,00,000
|
|||
Provision
for Taxation
|
68,000
|
|||
19,09,000
|
19,09,000
|
|||
The following
additional information is also provided :–
(a)
Miscellaneous expenses
included Rs. 5,000 audit fees and Rs. 700 for out of pocket expenses paid to
the auditors.
(b)
2000 Equity Shares were issued for consideration other than
cash.
(c)
Debtors of Rs. 52,000 are due for more than six months.
(d)
The Cost of Assets :
Building
|
Rs.
|
4,00,000
|
Plant
and Machinery
|
Rs.
|
7,00,000
|
Furniture
|
Rs. 62,500
|
|
(e) The balance of Rs. 1,50,000 in the loan account with State
Finance Corporation is inclusive of Rs. 7,500 for interest accrued but not due.
The Loan is secured by hypothecation of the Plant & Machinery.
(f) Balance at Bank includes Rs. 2,000 with Simplex Bank Ltd., which
is not a scheduled Bank.
(g)
Bills Receivable for Rs. 2,75,000 maturing on 30th June, 2002
have been discounted.
(h) The company had contract for the erection of machinery at Rs.
2,50,000 which still incomplete.
Solution :
PRINTEX LTD.
Balance Sheet as at 31st
March, 2002 (drawn as per Part-I Schedule - VI) (Section 211 of the Companies
Act)
Liabilities
|
As at 31.3.2002
|
Assets
|
As at 31.03.2002
|
||
Share
Capital
|
Rs.
|
Fixed
Assets
|
Rs.
|
||
Authorised
|
Land
|
2,00,000
|
|||
Equity Shares of
Rs. ...... each
|
Building
|
4,00,000
|
|||
Issued and
Subscribed 10,000
|
Less:
Depreciation
|
50,000
|
3,50,000
|
||
Equity Shares of
Rs. 100
|
Plant &
Machinery
|
7,00,000
|
|||
each fully called
up
|
1000000
|
Less:
Depreciation
|
1,75,000
|
5,25,000
|
|
(of the above,
200 equity
|
Furniture
|
62,500
|
|||
share of Rs. 100
each have
|
Less:
Depreciation
|
12,500
|
50,000
|
||
been
issued for
|
Investment
|
Nil
|
|||
consideration
other
|
Current
Assets, Loans
|
||||
than
cash)
|
&
Advances
|
||||
Less: Calls in arrear
|
1000 9,99,000
|
A.
Current Assets
|
2,00,000
|
||
Reserves
& Surplus
|
Stock of Finished
Goods
|
||||
General Reserve
|
2,10,000
|
Raw Material
|
50,000
|
2,50,000
|
|
Profit & Loss
A/c
|
1,00,000
|
Sundry Debtors
|
2,00,000
|
||
Secured
Loans
|
a) debts outstanding
for a
|
||||
Loan
from State Financial
|
period exceeding
6 months
|
52,000
|
|||
Corporation
(secured by
|
b) Other debts
|
||||
hypothecation
of
|
Less:
Provisions
|
1,48,000
|
|||
Plant
& Machinery)
|
1,42,500
|
i. Cash Balance
on hand
|
30,000
|
||
Unsecured Loans
|
1,21,000
|
ii.
Bank Balances
|
2,45,000
|
||
Unsecured Loans
|
with scheduled
bank
|
||||
Current
Liabilities and Provisions
|
with others
|
2,000
|
2,47,000
|
||
A.
Current Liabilities
|
B.
Loans & Advances
|
||||
Sundry
Creditors for goods
|
Advances
|
42,700
|
|||
and
Expenses
|
2,00,000
|
Miscellaneous
Expenditure
|
|||
Interest
Accrued but
|
|
not
due (S.F.C)
|
7,500
|
B.
Provisions :
|
|
Provision
for Taxation
|
68,000
|
Proposed
Dividend
|
60,000
|
19,08,000
|
(to
the extent not written
|
|
off
or adjusted)
|
13,300
|
19,08,000
Contingent Liability : Estimated
amount of contract remaining to be executed on Capital Account and not
provided for Rs. 1,50,000
Notes:
Bills receivable —
1.
Maturing on 30th June, 2002 amounting to Rs. 2,75,000
discounted.
2.
Miscellaneous Expenditure included :
Audit
fees
|
Rs. 5,000
|
Expenses
(Out of Pocket)
|
Rs. 700
|
Rs. 5,700
|
3.
The information required
to be given under any of the items or sub-items, if it cannot be conveniently
included in the Balance Sheet itself, shall be furnished in separate schedule
to be annexed to and to form part of the Balance Sheet, specially in case of
Balance Sheet drawn vertically.
Illustration 16 :
The following balances and particulars are extracted from the
books of Pant Co. Pvt. Ltd. for the year ended 31st December 1994 :
Rs.
|
|
Share
Capital : Authorised, issued & fully
|
|
paid up (50,000
equity shares)
|
5,00,000
|
General
Reserve (as at 1.1.94)
|
1,50,000
|
Furniture
(including addition of Rs. 5,000)
|
35,000
|
Office
equipments (as at 1.4.94)
|
22,000
|
Motor
car (purchased on 30.12.94)
|
30,000
|
Sundry
debtors (unsecured)
|
8,50,000
|
Advance
to staff
|
10,000
|
Cash
in hand
|
2,000
|
Balance
with Bank of India (including fixed
|
|
deposits of Rs.
1,00,000)
|
1,40,000
|
Loans
from Directors
|
2,00,000
|
Liability
for expenses and goods
|
2,67,000
|
Provision
for tax (as on 1.1.94)
|
1,00,000
|
Profit
& Loss A/c (as on 1.1.94)
|
3,000
|
|
Closing
stock (20,000 metres)
|
3,00,000
|
|
Advance
Tax paid
|
1,90,000
|
|
Depreciation
written off up to 31.12.94
|
||
(Furniture :
Rs.5,000, Office eqpt : Rs.2,000)
|
7,000
|
|
Opening
Stock (10,000 metres)
|
1,50,000
|
|
Legal
charges including Rs. 3,000 paid to
|
||
auditors for tax
representation
|
10,000
|
|
Salaries
to staff
|
50,000
|
|
Miscellaneous
expenses (including Rs. 4,000 for
|
||
tour within
India, Rs.36,000 for foreign tour)
|
2,00,000
|
|
Purchase
of cloth (2.10 lakh metres)
|
30,39,000
|
|
Audit
fees
|
4,000
|
|
Interest
on fixed deposit with bank
|
5,000
|
|
Sales
(2 lakhs metres) (including export sales
|
||
of Rs. 10 lakhs)
|
35,00,000
|
|
Further
information :
(a)
Rate of depreciation – Furniture 10%, Office equipment 15% and
Motor car 20%
(b) M.D. is entitled to commission @ 10% of net profits after
providing such commission subject to maximum of Rs. 36,000 p.a.
(c) Debtors include Rs. 1,50,000 outstanding of more than 6 months.
Out of this Rs. 20,000 is considered doubtful for which provision is to be made
in the accounts.
(d) Tax liability for 1994 is estimated at Rs. 2,00,000 for which
provision is to be made.
(e) Transfer to General Reserve Rs. 50,000 out of net profits and
proposed dividend is @ 6% on equity shares.
Prepare the Balance Sheet, and Profit & Loss Account for the
year ended 31st December, 1994, in accordance with the requirements of
Companies Act, 1956.
Solution :
PANT
CO. (P) LTD.
|
||||||||||||||||||||||
Balance Sheet as at 31.03.94
|
||||||||||||||||||||||
Liabilities
|
Rs
|
Rs.
|
Assets
|
Rs.
|
Rs.
|
|||||||||||||||||
Share Capital :
|
Fixed
Assets :
|
30,000
|
||||||||||||||||||||
Authorised,
issued, subscribed &
|
Furniture
|
|||||||||||||||||||||
fully
paid up ( 50,000 Equity shares
|
5,00,000
|
Addition during
year
|
5,000
|
|||||||||||||||||||
Rs.
10 fully paid up)
|
35,000
|
|||||||||||||||||||||
Reserves
and Surplus :
|
Less
: Depreciation
|
5,000
|
30,000
|
|||||||||||||||||||
Office equipment
|
22,000
|
|||||||||||||||||||||
General
Reserve
|
1,50,000
|
Less
: Depreciation
|
2,000
|
20,000
|
||||||||||||||||||
Add : Appropriations during
|
Motor
Car
|
30,000
|
||||||||||||||||||||
the year
|
50,000
|
2,00,000
|
Investments
:
|
Nil
|
||||||||||||||||||
Profit
and Loss A/c
|
23,000
|
Current
Assets,Loans/Advances:
|
||||||||||||||||||||
Secured
Loan :
|
Stock
in trade
|
3,00,000
|
||||||||||||||||||||
S/D due for more
|
||||||||||||||||||||||
Unsecured
Loan :
|
than 6 months
|
1,50,000
|
||||||||||||||||||||
Loan
from Directors
|
2,00,000
|
— Others
|
7,00,000
|
|||||||||||||||||||
Current Liabilities & Provisions :
|
8,50,000
|
|||||||||||||||||||||
Liab.
for goods and expenses
|
2,67,000
|
Less
: Prov. for B/D
|
20,000
|
8,30,000
|
||||||||||||||||||
Remuneration to M.D.
|
32,000
|
2,99,000
|
Cash
in hand
|
2,000
|
||||||||||||||||||
Provision
for taxation (net of
|
Cash at bank
|
40,000
|
||||||||||||||||||||
advance
tax)
|
1,10,000
|
Fixed Deposit
|
1,00,000
|
1,42,000
|
||||||||||||||||||
Proposed
dividend
|
30,000
|
1,40,000
|
Advances to staff
|
10,000
|
||||||||||||||||||
13,62,000
|
13,62,000
|
|||||||||||||||||||||
Pant Co. (P) Ltd.
|
||||||||||||||||||||||
Trading and Profit and Loss Account for the year ended
31.03.1994
|
||||||||||||||||||||||
Rs.
|
Particulars
|
Rs.
|
Rs.
|
Particulars
|
Rs.
|
|||||||||||||||||
To
|
Opening
stock
|
1,50,000
|
By
|
Sales :
|
25,00,000
|
|||||||||||||||||
To
|
Purchases
|
30,39,000
|
– Domestic
|
|||||||||||||||||||
To
|
Travelling
expenses :
|
–
Export
|
10,00,000
|
|||||||||||||||||||
– Within India
|
4,000
|
35,00,000
|
||||||||||||||||||||
–
Outside India
|
36,000
|
40,000
|
By
|
Closing stock
|
3,00,000
|
|||||||||||||||||
To
|
Paid to Auditors
|
By Interest on
fixed deposit
|
5,000
|
|||||||||||||||||||
– Audit fees
|
4,000
|
|||||||||||||||||||||
– Tax
representation fees
|
3,000
|
7,000
|
||||||||||||||||||||
To
|
Legal charges
|
7,000
|
|||||||
To
|
Salaries to staff
|
50,000
|
|||||||
To
|
Provision for bad
debts
|
20,000
|
|||||||
To
|
Misc. expenses
|
1,60,000
|
|||||||
To
|
M. D.’s
remuneration
|
32,000
|
|||||||
To
|
Provision for
taxation
|
2,00,000
|
|||||||
To
|
Net
profit c/d
|
1,00,000
|
|||||||
38,05,000
|
|||||||||
38,05,000
|
|||||||||
To
|
|||||||||
Proposed dividend
|
30,000
|
By
|
Balance b/d
(previous year)
|
3,000
|
|||||
To
|
General Reserve
|
50,000
|
By
|
Net Profit b.d
|
1,00,000
|
||||
To
|
Balance
cd
|
23,000
|
|||||||
1,03,000
|
|||||||||
1,03,000
|
|||||||||
(a) Computation of M.D’s Remuneration :
|
|
Net profit after
taxation provision
|
Rs.
|
As per profit and
loss A/c
|
1,32,000
|
Add : Provision
for taxation
|
2,00,000
|
Add : Provision
for bad debt
|
20,000
|
3,52,000
|
M.D.’s Remuneration
= 3,52,000 × (10/110) = Rs. 32,000
(b) According to Companies Act where during any financial year any
addition has been made to an asset, the depreciation on such asset will be
calculated on a prorata basis from the date of such addition. As the Motor Car
has been acquired on the last day of the Accounting year no depreciation on the
same is chargeable.
Illustration 17 :
The Trial Balance of T.V. Ltd. (having authorised capital of Rs.
8,00,000) was at 31.12.96 as under :
Particulars
|
Dr. (Rs.)
|
Cr.
(Rs.)
|
||
Share Capital
(Share of Rs. 100 each fully paid)
|
5,00,000
|
|||
Share Premium Account
|
50,000
|
|||
Land and Building
(Cost Rs. 3,00,000)
|
2,50,000
|
|||
Plant and
Machinery (Cost Rs. 4,00,000)
|
3,00,000
|
|||
Live Stock
|
20,000
|
|||
Gross Profit
Earned during 1996
|
1,30,000
|
|||
General Reserve
|
2,00,000
|
|||
6% Debentures
(Issued on 1st January 1989 secured by
|
||||
mortgage on land
and redeemable on 31.12.98)
|
1,00,000
|
|||
Sundry Debtors
and Creditors
|
60,000
|
30,000
|
||
Stocks as at
31.12.96 (At cost or market value whichever is lower)
|
50,000
|
|
Salaries
|
19,000
|
|
Directors’ fees
|
10,000
|
|
General Expenses
|
15,000
|
|
Cash at Bank
|
6,400
|
|
Cash in hand
|
600
|
|
Bills Receivables
|
20,000
|
|
Discount on issue
on debentures
|
4,000
|
|
Profit and Loss b/f
|
10,000
|
|
Investment (4%
Government Securities, Face value Rs. 1,00,000
|
||
purchased on
1.1.96)
|
95,000
|
|
Investments in
Eq. Shares (10,000 shares
|
||
@ Rs.25 per
share, Rs. 20 paid up)
|
1,70,000
|
|
10,20,000
|
10,20,000
|
|
Further information
:
(1)
Of the shares allotted
2,000 shares worth Rs. 2,00,000 were allotted as fully paid to vendor from whom
a running business was acquired.
(2)
Of the Debtors Rs. 10,000
were outstanding but are considered good except a debt of Rs. 5,000 doubtful to
be provided.
(3)
A provision of Rs. 25,000 is to be made for Income Tax.
(4)
The Market Value of
Government Securities on the date of the Balance Sheet was Rs. 93,000 and that
of equity shares was Rs. 1,60,000.
(5)
Auditor’s fee Rs. 3,000
should be provided for. Included in General Expenses is six months Insurance
Rs. 1,500 paid for the year to end on 30th June 1997.
(6)
Interest on Debentures
issued and on Investment in Government Securities should be taken into account.
(7)
Depreciation is to be
provided for @ 6% Original cost of Machinery and 2 % on the Original Cost of
land and building.
(8)
Provide for a dividend of 5% on shares.
Prepare Profit and Loss A/c, Profit and Loss Adjustment A/c and
the Balance Sheet as on 31st December, 1996.
Solution :
T.V.
LTD.
Dr.
|
Profit and Loss Account for the year ended 31.3.96
|
Cr.
|
|||||||||||||||
Particulars
|
Rs.
|
Rs.
|
Particulars
|
Rs.
|
|||||||||||||
To
|
Salaries
|
19,000
|
By
|
Gross profit b/d
|
1,30,000
|
||||||||||||
To
|
Directors’s fees
|
10,000
|
By
|
Interest on Govt.
securities
|
4,000
|
||||||||||||
To
|
General expenses
|
15,000
|
|||||||||||||||
Less:
Prepaid
|
|||||||||||||||||
To
|
insurance
(6mts.)
|
750
|
14,250
|
||||||||||||||
Provision
for doubtful debt
|
5,000
|
||||||||||||||||
To
|
Interest on
debentures @ 6%
|
6,000
|
|||||||||||||||
To
|
Depreciation on
assets (Note)
|
30,000
|
|||||||||||||||
To
|
Audit fees
|
3,000
|
|||||||||||||||
To
|
Net Profit c/d
|
46,750
|
|||||||||||||||
1,34,000
|
|||||||||||||||||
1,34,000
|
|||||||||||||||||
Dr.
|
Profit & Loss Adjustment A/c for the year ended 31.3.96
|
Cr.
|
|||||||||||||||
Particulars
|
Rs.
|
Rs.
|
Particulars
|
Rs.
|
|||||||||||||
To
|
Provision for tax
|
25,000
|
By
|
Balance b/d
|
10,000
|
||||||||||||
To
|
Proposed dividend
|
25,000
|
By
|
Net profit during the year
|
46,750
|
||||||||||||
To
|
Balance c/d transferred
to B/S
|
6,750
|
|||||||||||||||
56,750
|
|||||||||||||||||
56,750
|
|||||||||||||||||
Balance Sheet as at 31.12.96
|
|||||||||||||||||
Assets
|
Rs.
|
Liabilities
|
Rs.
|
Rs.
|
|||||||||||||
Authorised
Capital :
|
Fixed
Assets : (W.D.V.)
|
||||||||||||||||
8,000 equity shares @ Rs. 100 each
|
8,00,000
|
Land
and Building (cost Rs.3,00,000)
|
2,44,000
|
||||||||||||||
Issued,
Subscribed & paid up Capital :
|
Plant and
Machinery (cost Rs.4,00,000)
|
2,76,000
|
|||||||||||||||
5,000 Eq. sh. @
Rs.100 each, fully paid
|
5,00,000
|
Live stock
|
20,000
|
||||||||||||||
Reserves
and Surplus :
|
Investments
:
|
||||||||||||||||
General Reserve
|
2,00,000
|
Investments 4%
Govt. securities
|
|||||||||||||||
Profit
& Loss (Cr.)
|
6,750
|
(face value Rs.
1,00,000)
|
95,000
|
||||||||||||||
Share premium
|
50,000
|
Investment in
shares
|
1,70,000
|
||||||||||||||
Secured
Loans :
|
Current
Assets, Loans & Advances :
|
||||||||||||||||
6% Debenture
(mortgage on land)
|
1,00,000
|
Current
Assets :
|
|||||||||||||||
Unsecured
Loans :
|
Nil
|
Stock-in-trade
|
50,000
|
||||||||||||||
Current
Liabilities and Provisions :
|
Debt. more than 6
months
|
10,000
|
|||||||||||||||
Sundry Creditors
|
30,000
|
Others
|
50,000
|
||||||||||||||
Interest on
debenture
|
6,000
|
||||||||||||||||
60,000
|
|||||||||||||||||
Auditor’s
fees
|
3,000
|
Less
: Prov. for B/D
|
5,000
|
55,000
|
|||||||||||||
Proposed
dividend
|
25,000
|
Cash in hand
|
600
|
|||
Provision
for tax
|
25,000
|
Cash at bank
|
6,400
|
|||
Bills receivables
|
20,000
|
|||||
Loans
and Advances :
|
||||||
Interest on
Government securities
|
4,000
|
|||||
Prepaid insurance
|
750
|
|||||
Miscellaneous
Expenditure :
|
||||||
Discount
on debenture
|
4,000
|
|||||
9,45,750
|
||||||
9,45,750
|
||||||
Notes
:
*
Depreciation on assets :
Plant & Machinery = 6% on 4,00,000 = Rs. 24,000 ; Land & Building. – 2%
on 3,00,000 = Rs. 6,000
*
Market value of investment has not been considered.
Illustration 18 :
The Balance Sheet
of PQR Ltd. as at 31st March, 1998 is given below :
Liabilities
|
Rs.
|
Assets
|
Rs.
|
||
Share
Capital Authorised :
|
Fixed Assets :
|
||||
30,000
Eq. Sh. of Rs. 10 each
|
3,00,000
|
Freehold Property
|
1,15,000
|
||
Issued and Subscribed :
|
2,00,000
|
Current
Assets, Loans and Advances :
|
1,35,000
|
||
20,000
Eq. Sh. of Rs. 10 each fully paid
|
Stock in Trade
|
||||
Reserve
and Surplus :
|
Sundry Debtors
|
75,000
|
|||
Profit and Loss
Account
|
1,20,000
|
Cash and Bank
Balances
|
|||
Secured
Loan :
|
Cash in Hand
|
30,000
|
|||
12%
Debentures
|
1,20,000
|
Cash at Bank
|
2,20,000
|
||
Current
Liabilities and Provisions :
|
|||||
Sundry Creditors
|
1,15,000
|
||||
Proposed Dividend
|
20,000
|
||||
5,75,000
|
5,75,000
|
||||
At the Annual
General Meeting it was resolved :
(i)
To pay the proposed Dividend of 10% in cash.
(ii)
To issue one Bonus share for every four shares held.
(iii) To give existing shareholders the option to purchase one Rs. 10
share at Rs. 15 for every four shares held prior to bonus distribution, this
option being taken up by all the shareholders.
(iv)
To repay the debentures at a premium of 3 per cent.
Give the necessary journal entries and the company’s Balance
Sheet after the completion of all these transactions.
Solution :
Journal
of PQR Ltd.
Particulars
|
Dr.(Rs.)
|
Cr.(Rs.)
|
|||
Bank Account
|
Dr.
|
75,000
|
|||
To Equity Shareholders Account
|
75,000
|
||||
(Application money
received on 5,000 Shares @ Rs.
|
|||||
15 per share to be
issued as rights shares in the ratio
|
|||||
of 1:4)
|
|||||
Equity Shareholders Account
|
Dr.
|
75,000
|
|||
To Equity Share Capital A/c
|
50,000
|
||||
To Share Premium Account
|
25,000
|
||||
(Share application
money on 5,000 Shares @ Rs. 10
|
|||||
per share transferred
to Share Capital Account and
|
|||||
Rs. 5 per share to
Share Premium Account, vide
|
|||||
Board’s Resolution
dated.......)
|
|||||
Proposed Dividend A/c
|
Dr.
|
20,000
|
|||
To Bank A/c
|
20,000
|
||||
(Proposed dividend
paid to existing shareholders @
|
|||||
10%)
|
|||||
Share Premium A/c
|
Dr.
|
25,000
|
|||
Profit and Loss A/c
|
Dr.
|
25,000
|
|||
To Bonus to Shareholders A/c
|
50,000
|
||||
(Amount transferred
for issue of bonus shares to
|
|||||
existing shareholders
in the ratio of 1 : 4 vide General
|
|||||
Body’s Resolution
dated......)
|
|||||
Bonus to Shareholders A/c
|
Dr.
|
50,000
|
|||
To Equity Share Capital A/c
|
50,000
|
||||
(Issue of bonus
shares in the ratio of 1 for 4 vide
|
|||||
Board’s Resolution
dated......)
|
|||||
12% Debentures A/c
|
Dr.
|
1,20,000
|
|||
Premium Payable on Redemption
A/c
|
Dr.
|
3,600
|
|||
To Debentureholders A/c
|
1,23,600
|
||||
(Amount payable
to Debentureholders
|
on
|
||||
redemption, at a premium of 3%, transferred to Debentures holders
A/c)
Note :
|
The number of bonus shares issued has been calculated on the
basis of issued capital before rights issue, i.e., 20,000 shares (and not
25,000 shares after rights issue).
|
Profit and Loss A/c
|
Dr.
|
3,600
|
|||||
To Premium Payable on
Redemption
|
3,600
|
||||||
(Premium payable on
redemption charged to Profit &
|
|||||||
Loss A/c)
|
|||||||
Debentureholders A/c
|
Dr.
|
1,23,600
|
|||||
To Bank
|
1,23,600
|
||||||
(Amount paid to
Debenture holders)
|
|||||||
Balance
Sheet of PQR Limited as on .....(After completion
of transactions) :
|
|||||||
Liabilities
|
Rs.
|
Assets
|
Rs.
|
||||
Shares
Capital :
|
Fixed Assets :
|
||||||
Authorised,
Issued & Subscribed :
|
Property
|
1,15,000
|
|||||
30,000
Shares of Rs. 10 each fully paid
|
3,00,000
|
Investments
|
—
|
||||
(5,000
Shares of Rs.10 each fully paid
|
|||||||
issued
as bonus shares out of share
|
|||||||
premium
and P & L A/c)
|
Current Assets :
|
||||||
Reserve & Surplus :
|
91,400
|
Stock
in trade
|
1,35,000
|
||||
Profit & Loss
A/c
|
Sundry Debtors
|
75,000
|
|||||
Secured Loans
|
—
|
Cash at Bank
|
1,51,400
|
||||
Unsecured Loans
|
—
|
Cash in hand
|
30,000
|
||||
Current
Liabilities & Provisions :
|
|||||||
Sundry Creditors
|
1,15,000
|
||||||
5,06,400
|
5,06,400
|
||||||
Illustration 19 :
The following is
the trial balance on 31st March 1999 of Ramesh Ltd.:
Dr. (Rs.)
|
Cr. (Rs.)
|
|
Equity
capital: Equity shares of Rs. 10 each fully paid
|
5,00,000
|
|
Reserves
and surplus: 31.3.1998
|
15,00,000
|
|
Bank
overdraft (secured against working capital)
|
4,00,000
|
|
Deposits
from directors
|
6,00,000
|
|
Suppliers
A/c
|
2,50,000
|
9,00,000
|
Customers
A/c
|
28,00,000
|
75,000
|
Stock
on 31.3.1998
|
25,000
|
|
Expenses
paid
|
3,00,000
|
Prepaid
expenses 31.3.1998
|
4,000
|
|
Outstanding
expenses 31.3.1998
|
14,000
|
|
Purchases
and sales
|
130,00,000
|
135,00,000
|
Retums
in and out
|
1,56,000
|
1,46,000
|
Fixed
assets: 31.3.1998:
|
||
Cost
|
14,50,000
|
|
Provision
for depreciation
|
4,50,000
|
|
Interest
on loans and overdraft
|
1,00,000
|
|
180,85,000
|
180,85,000
|
On 31st March 1999 value
of stock was Rs. 75,000; prepaid expenses were Rs. 16,000 and outstanding
expenses were Rs. 6,000. Depreciation is to be provided on fixed assets at 15%
on reducing balance method.
Ramesh Ltd. asks
you to prepare :–
(a)
revenue statement for the year ended 313.99.
(b)
balance sheet as at 31.3.99.
Solution :
Working Notes
: 1.
Dr.
|
Expenses
A/c
|
Cr.
|
|
Particulars
|
Rs.
|
Particulars
|
Rs.
|
Opening prepaid
|
4,000
|
Opening
outstanding
|
14,000
|
Expenses paid
|
3,00,000
|
Expenses to
profit and loss A/c
|
2,80,000
|
Closing
outstanding
|
6,000
|
Closing prepaid
|
16,000
|
3,10,000
|
3,10,000
|
||
2.
|
Depreciation
|
Rs.
|
Cost
|
14,50,000
|
|
Less : Provision
for depreciation
|
4,50,000
|
|
Opening written
down value
|
10,00,000
|
|
Depreciation
thereon at 15%
|
1,50,000
|
|
3.
|
Sales
|
|
Gross
|
1,35,00,000
|
|
Less : Returns
inwards
|
1,56,000
|
|
1,33,44,000
|
||
4.
|
Purchases
|
|
Gross
|
1,30,00,000
|
|
Less : Returns
outwards
|
1,46,000
|
|
1,28,54,000
|
5.
|
Cost
of sales
|
|||
Opening stock
|
25,000
|
|||
Net purchases
|
1,28,54,000
|
|||
1,28,79,000
|
||||
Less : Closing
stock
|
75,000
|
|||
1,28,04,000
|
||||
6.
|
Reserves
and surplus
|
|||
As per last
balance sheet
|
15,00,000
|
|||
Add : Surplus
during the year
|
10,000
|
|||
15,10,000
|
||||
Rs.
|
Rs.
|
Rs.
|
||
Fixed
assets :
|
||||
Cost
|
14,50,000
|
|||
Less :
Accumulated deprn. up to last year
|
4,50,000
|
|||
for this year
|
1,50,000
|
6,00,000
|
8,50,000
|
|
Current
assets :
|
||||
Inventory at cost
|
75,000
|
|||
Customers sued –
considered good
|
28,00,000
|
|||
Advance to
suppliers
|
2,50,000
|
|||
Prepaid expenses
|
16,000
|
31,41,000
|
||
Less : Current
liabilities –
|
||||
Creditors for
goods
|
9,00,000
|
|||
Outstanding
expenses
|
6,000
|
|||
Amounts due to
customers
|
75,000
|
9,81,000
|
21,60,000
|
|
30,10,000
|
||||
Note : In
the absence of information :–
i)
corresponding figures of last financial statement are not
furnished
ii)
all information
required to be disclosed under Company Law has not been disclosed. Revenue statement for the
year ended 31. 3. 1999
Particulars
|
Rs.
|
Rs.
|
|
Sales
|
1,33,44,000
|
||
Less :
|
Cost of sales
|
1,28,04,000
|
|
5,40,000
|
|||
Less :
|
Expenses
|
2,80,000
|
|
Interest
|
1,00,000
|
||
Depreciation
|
1,50,000
|
5,30,000
|
|
10,000
| |||
Balance Sheet as
at 31.3.1999
Particulars
|
Rs.
|
Rs.
|
Sources of funds
:–
|
||
Shareholders’
funds :
|
||
Share capital :
|
||
Issued : 50000
equity shares of Rs. 10 each
|
5,00,000
|
|
15,10,000
|
20,10,000
|
|
Loan
funds :
|
||
Secured : from
bank – against working capital
|
4,00,000
|
|
Unsecured : from
directors
|
6,00,000
|
10,00,000
|
30,10,000
|
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