“The following balances have been extracted from the accounting records of V.P. Sugar Limited as at Sst March, 2017 : Se ae ‘Sale of Sugar (Net of Excise duty) Other Operating Income (Power generation) 170,66,041 1,95,616 Other Income 1,30,088 Cost of Materials Consumed 130,81 ,842 Increase in Inventories of Finished Goods, W.I.P., etc. 6,96,688 Salaries and Wages 5,19,426 Contribution of P.F. and Gratuity Fund 2,50,000 Depreciation 3,32,593 Amortisation Expenses 1,00,000 Power and Fuel 15,23,312 Rent, Rates and Taxes 13,21,246 Finance Cost 1,97,768 Tax Expenses 2,16,818 Paid-up Equity Share Capital of € 10 each 2,71,000You are required to prepare a Statement of Profit and Loss for the year ended 31st March, 2017 Solution : V.P. Sugar Ltd. Statement of Profit and Loss for the year ended 31st March, 2017 Particulars Note z x 1. Revenue From Operations 1 72,61,657 2. Other Income 1,30,088 |. Total Revenue 73,91,745 Expenses: 1. Cost of Materials Consumed Bs ee 30,81,842 2. Changes in Inventories é (6,96,688) 3. Employee Benefits Expense 2 7,69,426 4. Finance Costs 1,97,768 5. Depreciation and Amortization Expense 3 432,593 6. Other Expenses 4 28,44.558 ll, Total Expenses lll, Profit Before Tax 7,62,246 Tax Expense 2,16,818 IV. Profit/(Loss) for the Period Notes to Accounts 1. Revenue from Operations Sale of Sugar (Net of excise duty) Power Generation Total 2. Employee Benefit Expenses Salaries and Wages Contribution to P.F. and Gratuity Fund Total 3. Depreciation and Amortisation Expenses Depreciation Amortisation Expenses Total 4. Other Expenses a. Power and Fuel b. Rent, Rates and Taxes Total 5,45,428 £ 170,66,041 1,95,616 72,61,657 5,19,426 2,50,000 7,69,426 i 3,32,593 1,00,000 4,32,593_ Following is the extract of Balances of Ameya Ltd. as on 31st March, 2017. Sales 1,20,00,000 Opening Stock of Raw Material 10,00,000 Opening Stock of Finished Goods 5,00,000 Purchase of Raw Material 27,00,000 Purchase Returns 2,00,000 Sales Returns 20,00,000 Interest received on Fixed Deposits 5,00,000 Miscellaneous Income 4,00,000 Freight on Raw Material 30,000 Salaries and Wages 4,00,000 Bonus to Employees 80,000 Directors Remuneration 8,00,000Depreciation on ad are Bing $,00 000 Pin ana Machinoy 300.00 . 119.000| —9,00.000 erat pi on Debentures 000 Imerest on Loan rom Bar of Baroda 200.00 fepars and tartonance Expenses 0.00 Iasrace Promium o Omce P 30.000 {Additional information : {@) Closing Stock of Raw Material and Finished Goods was &5,00,000 and 6,00,000 respectively (@) Outstanding Electricity charges and Rent, Rates & Taxes wore ® 10,000 and ® 30,000 respectively {6) Miscellaneous income receivable was ® 10,000. {) § 50,000 to be provided for Bad and Doubtful Debts, {e) Prepaid Advertisement expenses were € 20,000. {Make a provision for Income Tax of ® 2,00,000 Prepare statement of Profit and Loss forthe year ended 31st March, 2017 as per the provisions of the Companies Act. (TY.B.Com., Oct. 2015, adapted) ‘Solution : Profit and Loss Statement for the year ended 31st March, 2017 sues @ 1. Revenue From Operations. 1 | 1,00,00,000 2. Other income 2 '9,10,000, |. Total Revenue (A) 7,09,10,000 Expenses: 1. Cost of Material Consumed 3 | 30,30,000 2 Changes in Inventory 4 | (1,00,000) ‘3. Employee Benefit Expenses 5 | 12,80,000 4, Finance Costs 6 7,00,000 '5. Depreciation and Amortisation Expenses ze 9,00,000 6. Other Expenses. 8 4.20,000 Il, Total Expenses (B) - '62,90,000 IL. Profit Before Tax (A- B) 46,8000 ‘Less : Provision for Taxation 2,00,000 1M. Profiu(Loss) for the Period coo “44,80,000PTPN THH TPH op Add : Freight Duty on Raw Material Less : Closing Stock of Raw Material Total . Change in Inventory Opening Stock of Finished Goods Less Closing Stock of Finished Goods Total . Employee Benefit Expenses Salary and Wages . Bonus to Employees . Directors Remuneration Total Finance Costs Interest on Loan . Interest on Debentures Total . Depreciation and Amontisation Expenses . Land and Building . Plant and Machinery . Furniture Total Other Expenses . Reserve for Doubtful Debts . Advertisement Expenses Less : Prepaid . Repairs and Maintenance . Insurance . Electricity Add : Outstanding Rent, Rates and Taxes Add : Outstanding . Audit Fees |. Sundry Expenses Total 1,20,000 (20,000) 40,000 1 —10,000 20,000 —30,000 30,000 (5,00,000) 30,30,000 5,00,000 (6,00,000) (7,00,000) 4,00,000 80,000 8,00,000 12,80,000 2,00,000 5,00,000ZErom the following trial balance of Vishal Ltd., prepare the Balance Sheet of the Company as on 3st March, 2017 as per the Companies Act Trial Balance as on 31st March, 2017 ‘Advances to Employees Equity Share Capital [52,00,000 Cash at Bank Capital Reserve 60,000 Furniture and Fixture Loan from SBI 8,00,000 Premises Provision for Employees Patents Welfare Fund 6,00,000 Expenses on Issue of Shares Provision for Expenses 1,64,000 (unwritten off) ‘Short Term Loan from Bank 4,90,200 Trade Receivables Unpaid Dividend 64,800 ‘Advance Tax Profit and Loss A/c 42,980 8% Government Bonds Bills Payable 85,100 Stock in Trade Sundry Creditors 1,00,020 76,07, 100 Solution : Vishal Ltd. Balance Sheet as at 31st March, 2017 |. EQUITY AND LIABILITIES. 1. Shareholders’ Funds a. Share Capital b. Reserves and Surplus 2. Non-Current Liabilities ‘2. Long Term Borrowings (Loan - SBI) '. Long Term Provisions (Employee Welfare) 3. Current Liabilities ‘2. Short Term Borrowings (Bank) b. Trade Payables ©. Other Current Liabilities (Unpaid Dividend) 4. Short Term Provisions (Provision for Expenses) Total WL ASSETS: 1. Non-Current Assets a. Fixed Assets ~ Tangible Assets = Intangible Assets (Patents) b. Other Non-Current Assets (Expenses - Share Issue) 2, Current Assets ‘8. Current investments (Govt. Bonds) Inventories . Trade Receivables Shon Term sara rt Advasons( land Advances (E: f Spot tem Loane and havance (Employes) 152,00,000 1,02,980 8,00,000, 6,00,000 4,90,200 1,885,120 164,800 41,64,000 [76,07,100 |48,59,940 10,00,000 25,000 3,38,000 355,600 3,66,240 3,14,3201. Reserves and Surplus. Capital Reserve '. Profit and Loss Ale (Cr. Bal.) Total 2. Trade Payables Sundry Creditors . Bits Payable Total 3. Tangible Assets 2 Promises Furniture and Fixture Total Interest Accrued on Investment) fm the folowing ledger balances of Regal Limited as on 31st March, 2017, you are ‘repare the Balance Sheet as on 31st March, 2017 as per Schedule Ofice Equement ‘8% Debentures in APCO Lia, Loose Tools ‘of the Compani General Reserve Creditors for Goods Creditors for Expenses ant and Machinery Cash Credit Computer Software Morigage Loan Debtors for Goods {8% Preference Share Capital Share Issue Expense (unwiten off) ‘Stores and Spares Interest Accrued on Investment Equity Share Capital Staff Weltare Fund Provision for Taxation Cash at Bank ‘Solution : Regal Ltd. EQUITY AND LIABILITIES: |. Shareholders’ Funds a) Share Capital = Equity Share Capital = Proference Share Capital eserves and Surplus (General Reserve) Non-Current Liabilities ‘Long Term Borrowings (Mortgage Loan) ‘Long Term Provisions (Staff Welfare Fund) Current Liabilities ‘Short Term Borrowings (Cash Credit) ees 60,000 42,980 702,980 1,00,020 185,100 [785,120 41,09,940 7/50,000, required to ies Act. e 4,15,000 168,500 36,000 75,000 3,10,000 5,50,000 15.00.00, 185,000 26.550 22,80,600 183,250 30,000 2.48,000 2,63,200+,90,000 Tnde Receivables Sferstan Cesare cones 23.000 Other Current Assets (Interest Accrued on Investment) 51,000 we 5 2 Creditors for Goods: 1,68,500 © Greer tor Exporace [_38.000, = 79a.500 Tangible Assete © Owe Couper 430.600 © Pon ane Machinery [.00.000, Total oe 230.500, 2 toe noe 1 53.000 Stores and Spares | 100,200 Total 79:200 tan mW: fs the Trial Balance of Neelam Electronics Lid, as on 31st March, 2017, Sees = = = = == Ea a re =. Be — eS == = =. ss —— a Soe i an Bs = Land and Building (Cost € 5,00,000) Seren, Some si a ‘Advance Tax as. a ‘se \ Trade Coma 20000 : ,auimoraed Shere Capital of te company was € 600,000 died nt 600,000 Equity | Debiors, which ar all unsecured and considered good, include €1,80,000 due for more Fepresent 5000 Eqully Shares in X Ltd. of € 10 each, € 4 per share called and paid withthe bank, not matured til the Balance Sheet date, amounted toYoure roqured to prepare Balance Sheet of Neda Eteorics id a¢ on 31 March, 2017 on revise ot te Conpanes hl, gt revo eur er, Seton oo {vB.com, Oct. 2016, adaptes In the Books of Neelam Electronics Ltd. Balance Sheet Parteulars z |. EQUITY AND LIABILITIES 1. Shareholders’ Funds FA aeed0.000 a. Share Capital pulligacoos b. Reserves and Surplus a 2. Non-Current Liabilities Long-term Borrowings ag e.0.000 3. Current Liabilities 2 Short-term Borrowings 4 | 4,00,000 . Trade Payables 3 Seed © Other Current Liailties 8 | 13,500 4. Short-term Provisions : 7 |_41,000 Total [44.14.50 Hl ASSETS 1. Non-Current Assets a. Fixed Assets ~ Tangible Assets a 8 |10,70,000 ~ Intangible Assets (Goodwill) 1,80,000 . Non-Current Investments 9 | 20,000 ©. Long Term Loans and 10 | “8,000 2. Current Assets 3. Inventories 16,98,900, b. Trade Receivables 11 |13/80,000 ©. Cash and Cash Equivalents 12 | 1.07.60 (44, 14,500 Equity Share Capital ‘Authorised Shares (Par value per share :€ 10) Issued, subscribed & fully pais 4,64,000 Equity Shares of ® 10 each 2. Reserves and Surplus, 2 Capital Reserves >. Security Premium © General 4 Reserve 1. Surplus / (Deficit) Total 3. Long-Term Borrowi 9% Debentures 4. Short-term Borrowings Bank Overdraft (Union Bank) 5. Trade Payables Sundry Creditors for Goods . Bills Payable Total 6. Other Current Liabilities Interest due on Debentures17. Short Term Provisions eae 241,000 Ret Aarares Tex 200,000 Tu ["s1.000° a. Fores Ascete Tangible refers ard Bung 5,00,000 Less : Depreciatoin (1.20,000)) 3,80,000 ~ Plan and Mechinery Tosco 000 Utes. Depresaton (400.000) 6.00,000 — “50000 Lit: Depreciation {70.9%0| _90.000 7;70,000 20,00 8.000 {Unsecured, Considered Goos) Sina Settors Oastaning for more than 6 onthe 1.80.00 Omer 4220.00) 1.00.00 b. BilsReceivable Trade Total 12.Cash and Cash Equivaent 2 Golrces wit sance ® Gaston ange Teta Note to Balance Sheet Contingent Liabilities 1 Thore are Bills Receivable discounted withthe bank, not matured tl the date of Balance Sheet of 15,000, 2 “The ypcalled amount of investments in 5,000 Equity shares of ® 6 per share (& 30,000) hussain 15: 31st March, 2017 Bose and Sen Ltd. provides to you the followin, 19 ledger balances after preparing ‘ts Profit and Loss Account for the year ended 31st March, 2017,Loan trom State Finance Corporation Secured by hypothecation of Pant & Machinery (Repayable within one year € 2,00,000) 410,50,000 Loans : Unsecured (Long term) 8,47,000 ‘Sundry Greditors for Goods & Expenses (Payable within 6 months) 14,00,000 Profit and Loss Account 7,00,000 Provision for Taxation 8,16,900 7738,63,000 ee eee ‘The following adational information is also provided ‘consideration for land and buildings. 1. 4:20,000 fuly paid equity shares were alloted as 2. Cost of Building % 28,00,000 Cost of Pant and Machinery © 49,00.000 % 437,500 Cost of Furniture and Fixture ‘3. Sundry Debtors for € 3,80,000 are due for more than 6 months & The amount of Balances with Bank includes © 18,000 with a bank which isnot a scheduled bank {ins the deposits of 5 lakhs are fora period of 9 months. ‘5. Unsecured loan includes ® 2,00,000 from a Bank and & 1,00,000 from related parties. 6. Wnte-off Proliminary expenses fly You are nat required to give previous ye the Company as on 31st March, 2017 as require Solution ar figures. You are required o prepare the Balance Sheet of 1 under the Companies Act. (cA-Inter, Nov. 13, adapted) ‘Bose and Sen Li. Balance Sheet as at 31st March, 2017 1. EQUITY AND LIABILITIES 4. Shareholders’ Funds a Share Capital 1 | 69,99,000 . Reserves and Surplus 2 | 21,56,000 2. Non-Current Liabilities Long Term Borrowings 3 | 16.97,000 3. Current Liabilities ‘2. Trade Payables i 14,00,000 . Other Current Liabilities P 4 | 2,00,000 {. Short Term Provisions (Tax) 816,900 Total 7732,62,900 ASSETS a 1. Non-Current Assets Fixed Assets Tangible Assets = 5 | 74,75,000 = intangible Assets (Patents and Trademark) 4,00,000 2. Current Assets @. Inventories 6 | 17:50,000 Trade Receivables $ | 14/00,000 ¢. Cash and Cash Equivalents 8 | 19,30,000 6. Short Term Loans and Advances 2,98,900 ‘Capital ‘Share Capital |, subscribed & called up Equity Shares of € 10 each ofthe above 4,20,000 shares have been issued consideration other than cash) = Calis in Arrears a a2 fi2, Reserves and Surplus a. General Reserve b. Surplus (Profit & Loss A/c) Less : Preliminary Expenses w/o (AS 26) ‘Surplus for the Year Total 3. Long Term Borrowings a. Secured - Term Loans Loan from State Finance Corporation (& 10,50,000 ~ € 2,00,000)... ..... (Secured by hypothecation of Plant and Machinery) b. Unsecured Bank Loan Loan from Related Parties Others (Bal. Fig.) Total 4. Other Current Liabilities Loan Instalment repayable within one year 5. Tangible Assets a. Land b. Buildings Less : Depreciation ¢. Plant and Machinery Less : Depreciation 4. Fumiture and Fittings Less : Depreciation Total 6. Inventories a. Raw Material b. Finished Goods Total 7. Trade Receivables Debis outstanding for a period exceeding six months Other Debts (Bal. Fig.) Total 8 Cash and Cash Equivalents ‘Cash at Bank with Sch. Banks (incl. FD for 9 months - & 5,00,000) ». With Others ©. Cash on Hand Total - 28,00,000 - -2,50,000}20,50,000 . 49,00,000| 15,49,100 6,06,900 [21,56,000 8,50,000 14,00,000 12,25,000]36,75,000 4,37,500 - _'87,500| 3,50,000 [74,75,000 3,50,000 14,00,000 3,80,000 10,20,000 [14,00,000 .. 17,11,000] Note : Preliminary expenses have been written off as per Accounting Standard (AS 26).\ Following is the Trial Balance of Sunil Ltd. as on 31st March, 2017. Stock in Trade Cash at Banks Share Issue Expenses Bank Overdraft (State Bank of India) 1,47,500 Sundry Debtors Sundry Creditors 1,51,500 Profit and Loss A/c Bills Receivable - Trade Bills Payable 91,000 Creditors for Expenses 45,000 Security Deposit for Electricity Investments in shares of Rohan Ltd. ad = (7,000 Equity shares of & 10 each, ® 6 per share called and paid up) Subscribed Capital : 4,000 7% Preference shares of % 100 each 4,00,000 85,500 Equity shares of € 10 each 8,55,000 16,90,000 The following further particulars are available : 1. The Authorised Capital of the company was 5,000 7% Preference Shares of & 100 each and 1,00,000 Equity shares of = 10 each. However company issued only 4,000 7% Preference shares of € 100 each and 85,500 Equity shares of € 10 each to the public. . Dividend on preference shares is in arrears for the two years 2015-16 and 2016-17. . The Bank statement shows a wrong credit of € 1,000 on 29th March, 2017 the same being detected and adjusted by the bank on 4th April, 2017. 4. Out of the issued capital 1,000 7% Preference shares of % 100 each were issued for consideration other than cash. 5. One Bill Receivable of 8 10,000 endorsed in favour of Rolta Ltd., our Supplier, has been returned dishonoured on 26th March, 2017 for which entry has to be made in the books of account. 6. The balance of ® 1,47,500 in the overdraft account with State Bank of India is inclusive of ® 17,500 for interest accrued and due. The overdraft is secured by hypothecation of stock. 7. Sundry debtors are unsecured and considered good. 8. Market value of investment in shares of Rohan Ltd. was % 30,000 whereas market value of stock in trade was ® 3,80,000 as on 31st March, 2017. en‘You are required to prepare Balance sheet of Sunil Ltd Ignore Previous year figure (on Stet March, 2017, Balance Sheet of Sunil Ltd. as on 318t March, 2017 per the Companies Act (.¥.B.Com, Mar. 10, adapted) 1. EQUITY AND LIABILITIES 1, Shareholders’ Funds a. Share Capital b. Reserves and Surplus 2. Current Liabilities ‘a. Short Term Borrowings », Trade Payables © Other Current Liabilities Total ‘ASSETS Non-Current Assote ‘Non Current Investments ‘and Advances Trade Receivables Gash and Cash Equivalents, Total 1, Share Capital 4, Equity Shere Capital ‘Authorised Shares (Par Value Per Sha Issued, subscribed & fuly paid shares ». Preference Share Capital 7% Redeemable Preference Shares ‘Authorised Shares (Par Value Per Si Issued, subscribed & fully paid Shares (Ofthe above 1,000 shares issued for consideration other than cash) Total x Reserves and Surplus P&L Statement (balance bid) ‘Short Term Borrowings ‘Bank Overdrat (secured by hypothecation of stock) 100) eyed i ta i MT lnvestments in Equiy Instruments (AV 30,000) 7. Long Term Loans and Advances og See Dept ty E Siete Eevee, notable at mont Trade 12,55,000, (4,10,000) 1,30,000 2187.50, 17,50010. Trade Receivables (Unsecured, Considered good) a. Sundry Debtors Balance 6,69,500 Add < Bills Receivable Dishonoured 10,00 6,79,500 b. Bills Receivable - Trade 85,000 7,44,500 Total 11. Cash and Cash Equivalents Balances with Banks 12. Contingent Liabilities and Commitments : a. Uncalled amount on partly paid shares - % 28,000 7,000 Equity Shares of % 10 each in Rohan Ltd.; % 6 per share called up and paid up. b. Arrears of cumulative dividends - % 56,000 Dividend on 4,000 7% Pref. Shares of 100 each in arrears for two years (2015-16 & 2016-17)