DK Goel Solutions Class 12 Accountancy Chapter 1 Financial Statements of Companies

Question 1: Vikas Ltd. has an authorized capital of Rs. 40,00,000 divided into Equity Shares of Rs. 10 each. The company invited applications for 3,00,000 equity shares. The amount was payable as follows:
On Application Rs. 3, On Allotment Rs. 5 and On Final Call Rs. 2.
The public applied for 2,80,000 shares and all the money was duly received. Show how Share Capital will appear in the Balance Sheet of the Company. Also prepare notes to accounts. 

Solution .1

Question.2 MN Ltd. has an authorized capital of Rs. 50,00,000 divided into equity shares of Rs. 10 each. The company invited applications for 3,00,000 shares. Applications for 2,75,000 shares were received. All calls were made and were duly received except the final call of Rs. 3 per shares on 5,000 shares. 4,000 of the share on which the final call was not received were forfeited. Show how share capital will appear in the balance sheet of the company. Also prepare notes to accounts.

Solution .2

Question. 3 On 1st April, 2018, Nissan Ltd. was formed with an authorized capital of Rs. 60,00,000 divided into 6,00,000 equity shares of Rs. 10 each. The Company issued prospectus inviting applications for 4,50,000 shares. The issue price was payable as under:

                           Rs.

On Application     3

On Allotment       4

On Call            Balance

Issue was fully subscribed and the company allotted shares to all the applicants.

The company did not make the call during the year. All money due on allotment was duly received except on 2,000 shares.

Show the shares Capital in the Balance Sheet of the company as at 31st March, 2019.

Solution .3

Question.4 On 1st April, 2018, Ernakulam Textiles Ltd. was formed with an authorizes capital of Rs. 75,00,000 divided into equity shares of Rs. 10 each. The company invited applications for 5,00,000 shares. Amount was payable as under:

                                   Rs.

On Application              3

On Allotment                 4

On Call                   Balance

Issue was fully subscribed and allotment was made. All money due on allotment was received except from one shareholder holding 500 shares. The company did not make the call during the year.

The company also issued 40,000 shares of Rs. 10 each fully paid up to vendors for purchase of building.

Show the Share Capital in the Balance Sheet of the Company as at 31st March, 2019 and also prepare notes to accounts.

Solution .4

Question 5. On 1st April, 2018 X Ltd. has a debit balance of Rs. 3,00,000 in reserves and Surplus as Balance of Statement of Profit & Loss. It earned a profit of Rs. 5,00,000 for the year ended 31st March, 2019. How would you show these items in the Balance Sheet and notes to accounts?

Solution .5

Question 6. Y Ltd. has the following balance on 1st April, 2018:

Rs.

Securities Premium Reserve 6,00,000

Statement of Profit & Loss 4,00,000

During the year ended 31st March, 2019, it incurred a loss of Rs. 2,60,000. How would you should these items in the Balance Sheet and notes to accounts?

Solution 6.

Question 7. Z Ltd. has the following balances on 1st April, 2018:

Rs.

General Reserve 2,50,000

Capital Reserve 1,50,000

Statement of Profit & Loss 2,00,000

During the year ended 31st March, 2019, it incurred a loss of Rs. 7,10,000. Show how these items will appear in the Balance Sheet and notes to accounts?

Solution 7.

Question 8. Operating Cycle and the period when payment is made is given below. How will you classify the liability?

Solution 8.

i. Current

ii. Current

iii. Non-Current

iv. Non-Current

v. Current

Question 9. State the major heads under which the item appearing on the equity and liabilities side of a companies’ balance sheet are classified.

Solution 9 .

Question 10. How will you classify the following in a Company’s the following in a company’s Balance sheet?
(i) Reserve and Surplus; (ii) Money received against share warrants.

Solution 10. Both will be classified under ‘Shareholder’s Funds’.

Question 11 A (new). How would you disclose the following items in the Balance Sheet of a Limited Company?
(i) Outstanding Salary
(ii) Bank Balance
(iii) Unpaid Matured Deposits
(iv) Preliminary Expenses
(v) Bills Payable

Solution 11 A (new). (i) Outstanding Salary shows in Current Liabilities under Other Current Liabilities.
(ii) Bank Balance shows in Current Assets under Cash and Cash Equivalents.
(iii) Unpaid Matured Deposits shows in Current Liabilities under Other Current Liabilities.
(iv) Preliminary Expenses not shown in balance sheet.
(v) Bills Payable shows in Current Liabilities under Trade Payables.

Question 11 B (new). Under what head the following items are shown in the Balance Sheet of a Company?
(i) Patents and Trade Marks
(ii) Income Received in Advance
(iii) Debentures issued by the Company
(iv) Stores and Spare-parts
(v) Motor Vehicles
(vi) Forfeited Shares Account
(vii) Government Securities
(viii) Uncalled Liabilities on Partly paid shares.

Solution 11 A (new). (i) Patents and Trade Marks shows in Non-current assets under fixed assets (intangible assets).
(ii) Income Received in Advance shows in Current liabilities under Other current Liabilities.
(iii) Debentures issued by the Company shows in Non-Current Liabilities under Long-term Borrowing.
(iv) Stores and Spare-parts shows in Current Assets under Inventories.
(v) Motor Vehicles show in Non-Current Assets under Fixed Assets (Tangible Assets).
(vi) Forfeited Shares Account shows in Shareholder’s Fund added to Subscribed Capital.
(vii) Government Securities shows in Non-Current Assets under Non-Current Investments.
(viii) Uncalled Liabilities on Partly paid shares shows in Commitments in notes to accounts.

Question.11 Name the sub-headings under which Current Liabilities shall be classified in a Company’s Balance Sheet.

Solution .11 Current Liabilities:

1. Short term Borrowing
2. Trade Payable
3. Other Current Liability
4. Short Term Provision

Question 12 A (new). Under which major headings and sub-headings will the following items be shown in the balance sheet of a company as per schedule III part I of the companies Act, 2013; i. Balance of the Statement of Profit and Loss
ii. Loan of Rs. 1,00,000 payable after three years
iii. Short term deposits payable on demand
iv. Loose tools
v. Trade mark
vi. Land
vii. Cash at bank
viii. Trade payable

Solution 12 A (new).

Question 12. Under what heads will you classify the following items on the equity and liability side of the Balance sheet of a limited company;

I. Unclaimed Dividend

II. Proposed dividend

III. Security Premium Reserve

IV. Share forfeited Account

V. Public Deposits

VI. Debentures

VII. Bills discounted but not matured

Solution 12.

Question 13 (new). Under what head the following are shown in a Company’s balance sheet?
i. Public deposits
ii. Sinking fund
iii. Office equipment
iv. Prepaid expenses
v. Outstanding salaries
vi. Motor car

Solution 13 (new).

Question 13. Under which main head and sub-heads the following items on the Equity and Liabilities side of the balance sheet of a company will be presented:

1. Shares options outstanding Account.
2. Excess Application money due for refund.
3. GST payable.
4. Debenture redemption Reserve.
5. Premium Payable on Redemption of debentures.
6. Provision for Gratuity
7. Outstanding Expenses.

Solution 13.

Question 14 (new). Name the major head and sub- head under which the following items will be presented in the balance sheet of a company as per schedule III part I of the companies Act, 2013?
i. Loose tools
ii. Unpaid dividend
iii. Copyrights and patents
iv. Land and building

Solution 14 (new).

Question 14. Operating Cycle and the period when payment is received is given below. How will you classify the assets?

Solution 14.

i. Current

ii. Current

iii. Non-Current

iv. Current

v. Non-Current

vi. Current

Question 15 (new). Classify the following items under Major Head and Sub- Head in the Balance Sheet of a company as per schedule III part I of the companies Act, 2013/
i. Capital Work in Progress
ii. Provision for Warranties
iii. Income received in advance
iv. Capital Advances
v. Capital Reserve
vi. Bank Overdraft

Solution 15 (new).

Question 15. State the major heads (or line items) under which the items appearing on the assets side of a company’s Balance sheet are classified.

Solution 15.

Question 16 (new). Under which major sub-heading will the following items be placed in the Balance Sheet of a company as per schedule III part I of the companies Act, 2013:
i. Capital Reserve
ii. Bonds
iii. Loans repayable on demand
iv. Vehicles
v. Goodwill
vi. Loose tools

Solution 16 (new).

Question 16. Name the sub-heading under which Current Assets shall be classified in a Company’s Balance Sheet.

Solution 16. Sub-Headings Under Current Assets:

1. Current Investment
2. Inventories
3. Trade receivables
4. Cash and cash equivalents
5. Short-term loans and advances

Question 17 A (new). Under what head the following are recorded in a Company’s Financial Statement?
i. Computer Software
ii. Bills Receivable
iii. Interest Accrued and Due on Debentures
iv. Interest Accrued on Investments
v. Calls in Arrears

Solution 17 A (new).

Question 17 B (new). Under what headings will you show the following items in the Financial Statements of a company:
i. Authorized Capital
ii. Share Forfeiture Account
iii. Capital Reserve
iv. Secured Debentures
v. Provision for Tax

Solution 17 B (new).

Question 17. Under what heads the following items on the Assets side of the Balance sheet of a company will be presented;

I. Sundry Debtors

II. Loose Tools

III. Live Stock

IV. Goods in Transit

V. Prepaid Expenses

Solution 17.

Question 18 (new). Give the headings under which the following items will be shown in a Company’s Balance sheet :
i. Mining Rights
ii. Debtors
iii. Interest on Calls in Advance
iv. Working in progress
v. Mortgage Loan
vi. Bonds

Solution 18 (new).

Question 18. Under which head following items of a non-financial company will be classified:

1. Sales
2. Interest on Loans given
3. Divided income
4. Sale of miscellaneous items
5. Refund of income tax
6. Revenue from services rendered.

Solution 18. Revenue from Operations: Sales and Revenue from services rendered
Other Income: Interest on Loans given, Divided income, Sale of miscellaneous items and Refund of income tax.

Question 19 (new). Under what heading will you show the following items in the Balance Sheet of a company:
i. Credit Balance of Statement of profit & loss
ii. Discount on issue/loss on issue of debentures (to be amortized in the next 12 months)
iii. Employees earned leave payable on retirement
iv. Provision for provident fund scheme
v. Provision for employee benefits
vi. Provision for doubtful debts
vii. Contracts remaining to be executed

Solution 19 (new).

Question 19. Under which head following items of a financial company will be classified:

1. Revenue from serviced rendered
2. Interest on loan given
3. Dividend income
4. Refund on income tax
5. Sale of miscellaneous items.

Solution .19 Revenue from Operations: Revenue from serviced rendered, Interest on loan given, and Dividend income
Other Income: Refund on income tax and Sale of miscellaneous items.

Question 20 (new). How will you show the following items in the balance sheet of a company:
i. Stores and spares
ii. Debentures due for redemption
iii. Live stock
iv. Intellectual property rights
v. Advance from customers
vi. Advance to suppliers
vii. Commission received in Advance

Solution 20 (new).

Question.20. Compute Revenue from Operations, Other Income and Total Revenue for a Manufacturing firm from the following information:

Sale of products Rs. 35,00,000; Sales Returns Rs. 50,000; Sale of Services Rs. 2,00,000; Sale of scrap Rs. 70,000; Sale of Miscellaneous items Rs. 6,000; Dividend Received Rs. 25,000.

Solution .20

Question 21 (new).Under which of the heads will the following items be shown, while preparing the balance sheet of a company, as per provisions of Companies Act, 2013, as contained in Schedule III?

Rs.
i. Preliminary Expenses 1,40,000
ii. Discount on Issue of Debentures 10,000
iii. 10% debentures 1,90,000
iv. Stock -in -trade 40,000
v. Cash at Bank 35,000
vi. Bills Receivable 12,000
vii. Goodwill 20,000
viii. Loose Tools 12,000
ix. Horses and Carts 22,000
x. Motor Truck 75,000
xi. Provision for Taxation 6,000
xii. Sundry Creditors 30,000

Solution 21 (new).

Question.21 Compute Revenue from Operations, Other Income and Total Revenue for a banking Company from the following information:

Interest Earned Rs. 62,00,000; Dividend received Rs. 6,20,000; Amount Received from sale of building Rs. 20,00,000 (Book Value Rs. 8,00,000); Amount received from sale of investments Rs. 5,00,000 (Book value Rs. 3,20,000); Refund of Income tax Rs. 10,000.

Solution .21

Question 22 (new). How would you show the following items in a company’s Balance Sheet as at 31st March, 2017:

Solution 22 (new).

Question22. Compute Cost of Materials consumed from the following:

Opening Inventory of Materials Rs. 4,20,000; Materials purchased Rs. 20,00,000; and closing Inventory of Materials Rs. 3,80,000.

Solution .22

Question 23 (new). How would you show the following items in a Company’s Balance sheet”

Solution 23 (new).

Question.23 Prepare notes to Accounts for change in inventories for the year ended 31st march, 2018 from the following information and determine the amount that will be shown in the Statement of profit and loss:

Inventory on 1-04-2017 Inventory on 31-03-2018

Rs. Rs.

Stock in Trade 4,00,000 3,60,000

Finished Good 7,00,000 10,00,000

Work-in-Progress 4,50,000 5,80,000

Solution .23

Rs. 3,90,000 will be shown in the Statement of profit and Loss Against change in inventories.

Question 24 (new). Show the following items in a company’s Balance Sheet as at 31st, March,2017:

Solution 24 (new).

Question 24. Compute Coat of Materials Consumed from the following:

Solution 24.

Question 25 (new). Under which head following items of a non-financial company will be classified:
i. Sales
ii. Interest on Loans given
iii. Divided income
iv. Sale of miscellaneous items
v. Refund of income tax
vi. Revenue from services rendered.

Solution 25 (new). Revenue from Operations: Sales and Revenue from services rendered
Other Income: Interest on Loans given, Divided income, Sale of miscellaneous items and Refund of income tax.

Question 25. Out of the following identity the item that are shown in the Notes to Accounts on employee benefit expenses:

1. Salaries
2. Medical expenses
3. Conveyance expenses
4. Gratuity paid
5. Business promotion expenses
6. Contribution on provident fund.

Solution 25.

Employee Benefit Expenses:

1. Salaries
2. Medical Expenses
3. Gratuity paid
4. Contribution on provident fund.

Question.26 From the following information for the year ended 31st March 2015, prepare Notes at Accounts on Employee Benefit Expense:

Solution 26

Question 27 (new). Compute Revenue from Operations, Other Income and Total Revenue for a Manufacturing firm from the following information:
Sale of products Rs. 35,00,000; Sales Returns Rs. 50,000; Sale of Services Rs. 2,00,000; Sale of scrap Rs. 70,000; Sale of Miscellaneous items Rs. 6,000; Dividend Received Rs. 25,000

Solution 27 (new).

Question 27 Out of the following identify the items to be shown in the Notes of Accounts on Finance Costs:

1. Interest paid in bank overdraft
2. Interest paid on borrowings
3. Interest received on term deposits
4. Deposit on issue of debentures written off
5. Interest paid on term loan

Solution 27.

Finance Cost:

1. Interest paid in bank overdraft
2. Interest paid on borrowings
3. Deposit on issue of debentures written off
4. Interest paid on term loan

Question 28 (new). Compute Revenue from Operations, Other Income and Total Revenue for a banking Company from the following information:
Interest Earned Rs. 62,00,000; Dividend received Rs. 6,20,000; Amount Received from sale of building Rs. 20,00,000 (Book Value Rs. 8,00,000); Amount received from sale of investments Rs. 5,00,000 (Book value Rs. 3,20,000); Refund of Income tax Rs. 10,000.

Solution 28 (new).

Question 28

Question 28. From the following information for the year ended 31st march, 2018, prepare Notes of Accounts on Finance costs:

Rs.

Interest paid on cash credit 2,20,000

Interest paid on debentures 3,50,000

Commitment Charges 20,000

Bank Charges 4,500

Interest paid on Public Deposits 80,000

Commission paid for deposit mobilization 16,000

Solution .28

Question 29 (new). Compute Cost of Materials consumed from the following:
Opening Inventory of Materials Rs. 4,20,000; Materials purchased Rs. 20,00,000; and closing Inventory of Materials Rs. 3,80,000

Solution 29 (new).

Question.29 Identify which the following items will be shown in the notes of accounts on ‘other expense’.

1. Consumptions of loose tools;
2. Staff welfare expenses;
3. Wages
4. Courier expenses
5. Carriage outwards
6. Discount allowed
7. Bank charges
8. Rent for warehouse
9. Depreciation on machinery
10. Gratuity paid
11. Goodwill written off

Solution 29. Other Expenses:

1. Consumptions of loose tools
2. Courier expenses
3. Carriage outwards
4. Discount allowed
5. Bank Charges
6. Rent for Warehouse'

Question 30 (new). Prepare notes to Accounts for change in inventories for the year ended 31st march, 2018 from the following information and determine the amount that will be shown in the Statement of profit and loss:

Solution 30 (new).

Question 30. Under which line item (major head) of the statement of profit and loss of a company following items will appear:

1. Loss processing charges
2. Sale of products
3. Leave encashment expenses;
4. Courier expenses
5. Computer software amortized
6. Interest on cash credit
7. Materials purchased.

Solution 30.

Question 31 (new). Compute Coat of Materials Consumed from the following

Solution 31 (new).

Question 31. State the major head under which the following items will be shown in the statement of profit and loss of a company:

1. Loss on issue of debentures written off
2. Dividend received
3. Sale of services
4. Contribution of gratuity fund
5. Medical expenses
6. Bank charges
7. Carriage outwards
8. Bad-Debts written off.

Solution 31.

Question 32 (new). Out of the following identity the item that are shown in the Notes to Accounts on employee benefit expenses:
i. Salaries
ii. Medical expenses
iii. Conveyance expenses
iv. Gratuity paid
v. Business promotion expenses
vi. Contribution on provident fund.

Solution 32 (new). Employee Benefit Expenses:
i. Salaries
ii. Medical Expenses
iv. Gratuity paid
vi Contribution on provident fund

Question 32. Under which major head of the statement of profit and loss of a Financial Company the following will appear:

1. Commission paid for deposit mobilization
2. Dividend received
3. Refund of income tax
4. Lease rent
5. Gain on sale of investments;
6. Expenses on employee’s stock option scheme;
7. Audit fee;
8. Premium payable on redemption of debentures written off.

Solution 32.

Question 33 A (new). From the following information for the year ended 31st March 2015, prepare Notes at Accounts on Employee Benefit Expense:

Solution 33 A (new).

Question. 33 (A) How would you disclose the following item in the financial statements of a Limited Company?

1. Outstanding salary
2. Bank balance
3. Unpaid matured deposits
4. Preliminary expenses
5. Bills payable
6. Sale of services
7. Goodwill written off
8. Medical Exp.

Solution 33 (A).

1. i. Outstanding salary: Current Liabilities under other Current Liabilities
2. ii. Bank balance: Current Assets under cash and cash Equivalents.
3. iii. Unpaid matured deposits: Current Liabilities under Other Current Liabilities.
4. iv. Preliminary expenses: Not Shown in Balance Sheet since they are written off in the same year.
5. v. Bills payable: Current Liabilities under Trade payables
6. vi. Sale of services: Revenue from Operations.
7. vii. Goodwill written off: Depreciation and Amortization Expenses.
8. viii. Medical Expenses: Employee Benefit Expenses.

Question 33 (B). Under what head the following items are shown in the Balance sheet of a company/

1. Patents and Trade Marks
2. Income Received in Advance
3. Debentures issued in Advance
4. Stores and Spare-parts
5. Motor vehicles
6. Forfeited Shares Account
7. Government Securities
8. Uncalled Liabilities on Partly paid shares.

Solution 33 (B).

Question 34 (new). Out of the following identify the items to be shown in the Notes of Accounts on Finance Costs:
i. Interest paid in bank overdraft
ii. Interest paid on borrowings
iii. Interest received on term deposits
iv. Deposit on issue of debentures written off
v. Interest paid on term loan

Solution 34 (new). Finance Cost:
i. Interest paid in bank overdraft
ii. Interest paid on borrowings
iii. Deposit on issue of debentures written off
iv. Interest paid on term loan

Question 34. Under which major headings and sub-headings will the following items be shown in the balance sheet of a company as per schedule III part I of the companies Act, 2013;

1. Balance of the Statement of Profit and Loss
2. Loan of Rs. 1,00,000 payable after three years
3. Short term deposits payable on demand
4. Loose tools
5. Trade mark
6. Land
7. Cash at bank
8. Trade payable

Solution 34.

Question 35 (new). From the following information for the year ended 31st march, 2018, prepare Notes of Accounts on Finance costs:

Solution 35 (new).

Finance Cost Rs. 6,86,000 (Interest Exp. RS. 6,50,000 plus Other Borrowing Costs Rs. 36,000)

Question 35. Under what head the following are shown in a Company’s balance sheet?

1. Public deposits
2. Sinking fund
3. Office equipment
4. Prepaid expenses
5. Outstanding salaries
6. Motor car

Solution 35.

Question 36 (new). Identify which the following items will be shown in the notes of accounts on ‘other expense’.
I. Consumptions of loose tools;
II. Staff welfare expenses;
III. Wages
IV. Courier expenses
V. Carriage outwards
VI. Discount allowed
VII. Bank charges
VIII. Rent for warehouse
IX. Depreciation on machinery
X. Gratuity paid
XI. Goodwill written off

Solution 36 (new). Other Expenses:
i. Consumptions of loose tools
iv. Courier expenses
v. Carriage outwards
vi. Discount allowed
vii. Bank Charges
viii. Rent for Warehouse

Question 36. Name the major head and sub- head under which the following items will be presented in the balance sheet of a company as per schedule III part I of the companies Act, 2013?

1. Loose tools
2. Unpaid dividend
3. Copyrights and patents
4. Land and building

Solution 36.

Question 37 (new). Under which line item (major head) of the Statement of Profit and Loss of a Company following items will appear:
(i) Loan Processing Charges; (ii) Sale of Products; (iii) Leave Encashment Expenses; (iv) Conveyance Expenses; (v) Computer Software Amortized; (vi) Interest on Cash Credit; (vii) Materials purchased.

Solution 37 (new).

Question 37. Classify the following items under Major Head and Sub- Head in the Balance Sheet of a company as per schedule III part I of the companies Act, 2013/

1. Capital Work in Progress
2. Provision for Warranties
3. Income received in advance
4. Capital Advances
5. Capital Reserve
6. Bank Overdraft

Solution 37.

Question 38 (new). State the major head under which the following items will be shown in the statement of Profit and loss of a Company:
(i) Loss on issue of Debentures written off; (ii) Dividend received; (iii) Sale of Services; (iv) Contribution to gratuity fund; (v) Medical Expenses; (vi) Bank Charges (vii) Carriage Outward; (viii) Bad-Debts written off.

Solution 38 (new).

Question 38. Under which major sub-heading will the following items be placed in the Balance Sheet of a company as per schedule III part I of the companies Act, 2013:

1. Capital Reserve
2. Bonds
3. Loans repayable on demand
4. Vehicles
5. Goodwill
6. Loose tools

Solution 38.

Question 39 A (new). The following balance are supplied, on the basis of which you are required to show the major appropriate heads under which the items given below will appear in the balance sheet of Veekay Ltd. as on 31st March 2017:

Solution 39 A (new).

Question 39 (A). Under what head the following are recorded in a Company’s Financial Statement?

1. Computer Software
2. Bills Receivable
3. Interest Accrued and Due on Debentures
4. Interest Accrued on Investments
5. Calls in Arrears
6. Discount on Issue of Debentures written off
7. Fees received for arranging loans
8. Telephone and Internet Exp.

Solution 39 (A).

Question.39 (B) Under what headings will you show the following items in the Financial Statements of a company:

1. Authorized Capital
2. Share Forfeiture Account
3. Capital Reserve
4. Secured Debentures
5. Provision for Tax
6. Trade Payable written back
7. Loan Processing Charges

Solution .39 (B)

Question 40 (new). State any five items which are shown under the heading ’Reserve and Surplus’ in the Balance Sheet of a company as per schedule III part - I of the Companies Act, 2013

Solution 40 (new). These five items shown under Reserve and Surplus are:
i. Capital Reserves;
ii. Securities Premium Reserve;
iii. Debenture Redemption Reserve;
iv. Revaluation Reserve;
v. Capital Redemption Reserve

Question 40. Give the headings under which the following items will be shown in a Company’s Balance sheet :

1. Mining Rights
2. Debtors
3. Interest on Calls in Advance
4. Working in progress
5. Mortgage Loan
6. Bonds

Solution 40.

Question 41 (new). Under which major headings and sub-headings the following items will be presented in the Balance Sheet of a company as per Schedule III Part I of the Companies Act, 2013?
i. Loans provided repayable on demand
ii. Goodwill
iii. Copyrights and Patents
iv. Cheques
v. General Reserve
vi. Goods acquired for trading and
vii. 9% Debentures repayable after three years

Solution 41 (new).

Question 41. Under what heading will you show the following items in the Balance Sheet of a company:

1. Credit Balance of Statement of profit & loss
2. Discount on issue/loss on issue of debentures (to be amortized in the next 12 months)
3. Employees earned leave payable on retirement
4. Provision for provident fund scheme
5. Provision for employee benefits
6. Provision for doubtful debts
7. Contracts remaining to be executed

Solution 41.

Question 42 (new). Name any two items that are shown under the head ‘other current liabilities’ and any two items that are shown under the head ’other current assets’ in the balance sheet of a company as per schedule III of the companies Act, 2013

Solution 42 (new).

Question 42. How will you show the following items in the balance sheet of a company:

1. Stores and spares
2. Debentures due for redemption
3. Live stock
4. Intellectual property rights
5. Advance from customers
6. Advance to suppliers
7. Commission received in Advance

Solution 42.

Question 43 (new). Under which major headings and sub- headings the following items will be shown in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013?
i. Bank overdraft
ii. Draft in hand
iii. Trade Marks
iv. Long-Term Provision
v. Calls in Advance
vi. Interest on Calls in Advance

Solution 43 (new).

Question 43. The following balance are supplied, on the basis of which you are required to show the major appropriate heads under which the items given below will appear in the balance sheet of Veekay Ltd. as on 31st March 2017:

Solution 43.

Question 44 (new). How will you show the following in the Balance Sheet of a Company as at 31st March, 2020:
60,000, 8% Debentures of Rs. 100 each redeemable in four equal instalments beginning 1st January, 2021.

Solution 44 (new). Rs. 45,00,000 as Long term Borrowings
Rs. 15,00,000 as Other Current Liabilities

Question 44. State any five items which are shown under the heading ’Reserve and Surplus’ in the Balance Sheet of a company as per schedule III part -I of the Companies Act, 2013

Solution 44. These five items shown under Reserve and Surplus are:

1. Capital Reserves;
2. Securities Premium Reserve;
3. Debenture Redemption Reserve;
4. Revaluation Reserve;
5. Capital Redemption Reserve

.