12th | Financial Statement of a Company | Question No. 21 To 25 | Ts Grewal Solution 2022-2023

Question 21:

How are the following items shown while preparing Balance Sheet of a company:
(i) Surplus, i.e., Balance in Statement of Profit and Loss (Dr.);
(ii) Interest accrued and due on Debentures;
(iii) Computer Software under development;
(iv) Interest accrued on Investment?

Answer:

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

Question 22: Under which heads and sub-heads will be the following items shown in the Balance Sheet of a Company as per Schedule l, Part I of the Companies Act, 2013?

(i) Securities Premium Reserve

(ii) Interest accrued and due on secured loans

(iii) Cash and Bank balance

(iv) Interest accrued but not due

(v) Building

(vi) Mining Rights

(vii) Sundry Debtors

(vii) Sundry Creditors

(ix) Premium on Redemption of Debentures

(x) Provision for Tax

Answer:

S. No.	Major Head	Sub-head
(i)	Shareholders' Funds	Reserves and Surplus
(ii)	Current Liabilities	Other Current Liabilities
(ii)	Current Assets	Cash and Cash Equivalents
(iv)	Current Liabilities	Other Current Liabilities
(v)	Non-current Assets	Property, Plant and Equipment (Fixed Assets)-Tangible Assets
(vi)	Non-current	Assets Property, Plant and Equipment (Fixed Assets)-Intangible Assets
(vii)	Current Assets	Trade Receivables
(vii)	Current Liabilities	Trade Payables
(ix)	Non-current Liabilities	Other Long-term Liabilities
(x)	Current Liabilities	Short-term Provisions

Question 23:

Prepare Balance Sheet of the Company as per Schedule III of the Companies Act, 2013:	`
10% Debentures of ` 100 each	1,90,000
Stock-in-Trade (inventories)	40,000
Goodwill	20,000
Provision for Tax	60,000
Totalling of Balance Sheet is not required

Answer:

Balance Sheet as at …
Particulars	Note No.	Amount ( `)
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 ( `)
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 24:

Prepare Balance Sheet of VT Ltd. as at 31st March 2022, from the following information as per Schedule III, Part I of the Companies Act, 2013:

	`		`
General Reserve	3,000	Fixed Assets: Tangible Assets (Cost)	9,000
8% Debentures	3,000	Other Current Liabilities	2,500
Surplus, i.e., Balance in Statement of Profit and Loss (Credit)	1,200	Share Capital	5,000
Depreciation of Fixed Assets	700	Other Current Assets	6,400

Answer:

Balance Sheet as at March 31, 2022
Particulars	Note No.	( `)
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
Fixed Assets (Tangible Assets)	4	8,300
2. Current Assets
Other Current Assets		6,400
Total		14,700

NOTES TO ACCOUNTS
Note No.	Particulars		( `)
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	Fixed Assets
	Tangible Assets (Cost)	9,000
	Depreciation	(700)	8,300

Question 25:

From the following information extracted from the books of Howrach Ltd., prepare Balance Sheet of the company as at 31st March, 2022 as per Schedule III of the Companies Act, 2013:

	( ` in '000)		( ` in '000)
Long-term Borrowings	1,000	Fixed Assets (Tangible)	1,600
Trade Payable	60	Inventories	40
Share Capital	800	Trade Receivables	160
Reserves and Surplus	180	Cash and Cash Equivalents	240

Answer:

Balance Sheet of Howrach Ltd. as at March 31, 2022
Particulars	Note No.	( ` 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
Fixed Assets (Tangible Assets)		1,600
2. Current Assets
Inventories		40
Trade Receivables		160
Cash and Cash Equivalents		240
Total		2,040