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Page 1
20-20
QUES 1
The authorised capital of Mercury Ltd. is Rs. 15,00,000 divided into 1,50,000 equity shares of Rs. 10 each. Out of these,
the company issued 1,00,000 equity shares for subscription to the public. The public applied for 98,000 equity shares and
all the money was duly received. How will you show the 'Share Capital A/c' in the Balance Sheet of Star Ltd as per Schedule
III, Part I of the Companies Act, 2013. Also prepare 'Notes to Accounts' for the same.
Solution:
BALANCE SHEET OF MERCURY LTD.
As at.............
Particulars Note Amount Amount
No. Current Year (Rs.) Previous Year (Rs.)
1. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 9,80,000
Notes to Accounts:
Particulars Amt.(Rs.)
1. Share Capital
Authorised Capital
1,50,000 Equity Shares of Rs. 10 each 15,00,000
Issued Capital
1,00,000 Equity Shares of Rs. 10 each 10,00,000
Subscribed Capital
Subscribed and fully paid-up
98,000 Equity Shares of Rs. 10 each 9,80,000
QUES 2
Moon Ltd. is registered with capital of Rs. 40,00,000 divided into 4,00,000 equity shares of Rs.10 each. The company
issued 2,00,000 equity shares for subscription to the public. The public applied for 1,90,000 equity shares and all the
money was duly received, except the final call of Rs.2 per share on 5,000 shares. 1,000 of the shares 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' for the same.
Solution:
BALANCE SHEET OF MOON LTD.
As at.............
Particulars Note Amount Amount
No. Current Year (Rs.) Previous Year (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 18,90,000
Notes to Accounts:
Particulars Amt. (Rs.)
1. Share Capital
Authorised Capital
4,00,000 Equity Shares of Rs. 10 each 40,00,000
Issued Capital
2,00,000 Equity Shares of Rs. 10 each 20,00,000
Subscribed Capital
Subscribed and fully paid-up
1,85,000 Equity Shares of Rs.10 each 18,50,000
Subscribed but not fully paid-up
4,000 Equity Shares of Rs. 10 each 40,000
Less: Calls-in-Arrears (4,ooo x Rs.2) 8,000 32,000
Add: Forfeited shares A/c (1;000 x Rs.8) 8,000
18,90,000
Page 2
20-20
QUES 1
The authorised capital of Mercury Ltd. is Rs. 15,00,000 divided into 1,50,000 equity shares of Rs. 10 each. Out of these,
the company issued 1,00,000 equity shares for subscription to the public. The public applied for 98,000 equity shares and
all the money was duly received. How will you show the 'Share Capital A/c' in the Balance Sheet of Star Ltd as per Schedule
III, Part I of the Companies Act, 2013. Also prepare 'Notes to Accounts' for the same.
Solution:
BALANCE SHEET OF MERCURY LTD.
As at.............
Particulars Note Amount Amount
No. Current Year (Rs.) Previous Year (Rs.)
1. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 9,80,000
Notes to Accounts:
Particulars Amt.(Rs.)
1. Share Capital
Authorised Capital
1,50,000 Equity Shares of Rs. 10 each 15,00,000
Issued Capital
1,00,000 Equity Shares of Rs. 10 each 10,00,000
Subscribed Capital
Subscribed and fully paid-up
98,000 Equity Shares of Rs. 10 each 9,80,000
QUES 2
Moon Ltd. is registered with capital of Rs. 40,00,000 divided into 4,00,000 equity shares of Rs.10 each. The company
issued 2,00,000 equity shares for subscription to the public. The public applied for 1,90,000 equity shares and all the
money was duly received, except the final call of Rs.2 per share on 5,000 shares. 1,000 of the shares 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' for the same.
Solution:
BALANCE SHEET OF MOON LTD.
As at.............
Particulars Note Amount Amount
No. Current Year (Rs.) Previous Year (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 18,90,000
Notes to Accounts:
Particulars Amt. (Rs.)
1. Share Capital
Authorised Capital
4,00,000 Equity Shares of Rs. 10 each 40,00,000
Issued Capital
2,00,000 Equity Shares of Rs. 10 each 20,00,000
Subscribed Capital
Subscribed and fully paid-up
1,85,000 Equity Shares of Rs.10 each 18,50,000
Subscribed but not fully paid-up
4,000 Equity Shares of Rs. 10 each 40,000
Less: Calls-in-Arrears (4,ooo x Rs.2) 8,000 32,000
Add: Forfeited shares A/c (1;000 x Rs.8) 8,000
18,90,000
QUES 3
Ankit Ltd. was registered with an authorised capital of Rs. 1,20,00,000 divided into 1,20,000 Equity Shares of Rs. 100 each.
The company issued 6,000 Equity Shares as fully paid to the vendor for purchase of building and 50,000 Equity Shares
were subscribed for by the public. All the calls were made and were duly received except the second and final call of Rs.
20 per share on 700 shares. Show how "Share Capital" will appear in the Balance Sheet of the company. Also prepare
'Notes to Accounts' for the same.
Solution:
BALANCE SHEET OF ANKIT LTD.
As at.............
Particulars Note Amount Amount
No. Current Year (Rs.) Previous Year (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
Share Capital 1 55,86,000
Notes to Accounts:
1. Share Capital Amt.(Rs.)
Authorised Capital
1,20,000 Equity Shares of Rs. 100 each 1,20,00,000
Issued Capital
56,000 Equity Shares of Rs. 100 each 56,00,000
Subscribed Capital
Subscribed and fully paid-up
55,300 Equity Shares of Rs. 100 each 55,30,000
(Of the above, 6,000 shares have been issued for consideration other than cash)
Subscribed but not fully paid-up
700 Equity Shares of Rs. 100 each 70,000
Less: Calls-in-Arrears (700 x Rs.20) (14,000) 56,000
55,86,000
QUES 4
X Ltd. has an authorised capital of Rs. 15,00,000 divided into 1,00,000 Equity shares of Rs. 10 each and 50,000 9%
Preference Shares of Rs. 10 each. The company invited applications for all the preference shares and 90,000 equity shares.
All the preference shares were subscribed, called and paid, while subscriptions were received for only 85,000 equity
shares. During the first year, Rs. 8 per share were called. Ram holding 1,000 shares and Shyam holding 2,000 shares did
not pay first call of Rs. 2. Shyam's shares were forfeited after the first call and later on 1,500 of the forfeited shares were
reissued at Rs. 6 per share Rs. 8 called up.
(a) Show Share Capital in the Balance Sheet as per Schedule III, Part I of the Companies Act, 2013:
(b) Prepare relevant 'Notes to Accounts'. {CBSE, Circular Acad. 43, Modified}
Solution:
BALANCE SHEET OF X LTD.
as at 31
st
March, 2013 (Extract)
Particulars Note
No.
Amount Current
Year (Rs.)
Amount Previous
Year (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 11,77,000
(b) Reserves and Surplus 2 6,000
Total 11,83,000
Notes to Accounts:
Particulars Amt.(Rs.)
1. Share Capital
Authorised Capital
1,00,000 Equity Shares of Rs. 10 each 10,00,000
50,000; 9% Preference Shares of Rs. 10 each 5,00,000
15,00,000
Page 3
20-20
QUES 1
The authorised capital of Mercury Ltd. is Rs. 15,00,000 divided into 1,50,000 equity shares of Rs. 10 each. Out of these,
the company issued 1,00,000 equity shares for subscription to the public. The public applied for 98,000 equity shares and
all the money was duly received. How will you show the 'Share Capital A/c' in the Balance Sheet of Star Ltd as per Schedule
III, Part I of the Companies Act, 2013. Also prepare 'Notes to Accounts' for the same.
Solution:
BALANCE SHEET OF MERCURY LTD.
As at.............
Particulars Note Amount Amount
No. Current Year (Rs.) Previous Year (Rs.)
1. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 9,80,000
Notes to Accounts:
Particulars Amt.(Rs.)
1. Share Capital
Authorised Capital
1,50,000 Equity Shares of Rs. 10 each 15,00,000
Issued Capital
1,00,000 Equity Shares of Rs. 10 each 10,00,000
Subscribed Capital
Subscribed and fully paid-up
98,000 Equity Shares of Rs. 10 each 9,80,000
QUES 2
Moon Ltd. is registered with capital of Rs. 40,00,000 divided into 4,00,000 equity shares of Rs.10 each. The company
issued 2,00,000 equity shares for subscription to the public. The public applied for 1,90,000 equity shares and all the
money was duly received, except the final call of Rs.2 per share on 5,000 shares. 1,000 of the shares 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' for the same.
Solution:
BALANCE SHEET OF MOON LTD.
As at.............
Particulars Note Amount Amount
No. Current Year (Rs.) Previous Year (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 18,90,000
Notes to Accounts:
Particulars Amt. (Rs.)
1. Share Capital
Authorised Capital
4,00,000 Equity Shares of Rs. 10 each 40,00,000
Issued Capital
2,00,000 Equity Shares of Rs. 10 each 20,00,000
Subscribed Capital
Subscribed and fully paid-up
1,85,000 Equity Shares of Rs.10 each 18,50,000
Subscribed but not fully paid-up
4,000 Equity Shares of Rs. 10 each 40,000
Less: Calls-in-Arrears (4,ooo x Rs.2) 8,000 32,000
Add: Forfeited shares A/c (1;000 x Rs.8) 8,000
18,90,000
QUES 3
Ankit Ltd. was registered with an authorised capital of Rs. 1,20,00,000 divided into 1,20,000 Equity Shares of Rs. 100 each.
The company issued 6,000 Equity Shares as fully paid to the vendor for purchase of building and 50,000 Equity Shares
were subscribed for by the public. All the calls were made and were duly received except the second and final call of Rs.
20 per share on 700 shares. Show how "Share Capital" will appear in the Balance Sheet of the company. Also prepare
'Notes to Accounts' for the same.
Solution:
BALANCE SHEET OF ANKIT LTD.
As at.............
Particulars Note Amount Amount
No. Current Year (Rs.) Previous Year (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
Share Capital 1 55,86,000
Notes to Accounts:
1. Share Capital Amt.(Rs.)
Authorised Capital
1,20,000 Equity Shares of Rs. 100 each 1,20,00,000
Issued Capital
56,000 Equity Shares of Rs. 100 each 56,00,000
Subscribed Capital
Subscribed and fully paid-up
55,300 Equity Shares of Rs. 100 each 55,30,000
(Of the above, 6,000 shares have been issued for consideration other than cash)
Subscribed but not fully paid-up
700 Equity Shares of Rs. 100 each 70,000
Less: Calls-in-Arrears (700 x Rs.20) (14,000) 56,000
55,86,000
QUES 4
X Ltd. has an authorised capital of Rs. 15,00,000 divided into 1,00,000 Equity shares of Rs. 10 each and 50,000 9%
Preference Shares of Rs. 10 each. The company invited applications for all the preference shares and 90,000 equity shares.
All the preference shares were subscribed, called and paid, while subscriptions were received for only 85,000 equity
shares. During the first year, Rs. 8 per share were called. Ram holding 1,000 shares and Shyam holding 2,000 shares did
not pay first call of Rs. 2. Shyam's shares were forfeited after the first call and later on 1,500 of the forfeited shares were
reissued at Rs. 6 per share Rs. 8 called up.
(a) Show Share Capital in the Balance Sheet as per Schedule III, Part I of the Companies Act, 2013:
(b) Prepare relevant 'Notes to Accounts'. {CBSE, Circular Acad. 43, Modified}
Solution:
BALANCE SHEET OF X LTD.
as at 31
st
March, 2013 (Extract)
Particulars Note
No.
Amount Current
Year (Rs.)
Amount Previous
Year (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 11,77,000
(b) Reserves and Surplus 2 6,000
Total 11,83,000
Notes to Accounts:
Particulars Amt.(Rs.)
1. Share Capital
Authorised Capital
1,00,000 Equity Shares of Rs. 10 each 10,00,000
50,000; 9% Preference Shares of Rs. 10 each 5,00,000
15,00,000
Issued Capital
90,000 Equity Shares of Rs. 10 each 9,00,000
50,000; 9% Preference Shares of Rs. 10 each 5,00,000
14,00,000
Subscribed Capital
Subscribed and fully paid-up
50,000; 9% Preference Shares of Rs. 10 each 5,00,000
Subscribed but not fully paid-up
84,500 Equity Shares of Rs. 10 each, Rs. 8 called up 6,76,000
Less: Calls-in-Arrears d.ooo x Rs. 2) (2,000) 6,74,000
Add: Forfeited shares A/c (500 x Rs. 6) 3,000
11,77,000
2. Reserves and Surplus
Capital Reserve 6,000
QUES 5
Under what heads and sub-heads will the following items will appear in the Balance Sheet of a company as per Schedule
III, of the Companies Act, 2013:
(i) Public Deposit for 12 months;
(ii) Mining Rights;
(iii) Interest accrued and due on debentures;
(iv) Cheques and Drafts on hand;
(v) Investment in Property;
(vi) Advance received from Customers;
(vii) Interest accrued but not due on Loans;
(viii) Capital Reserve;
(ix) Calls-in-Advance;
(x) Guarantees given by the Company;
(xi) Arrears of dividends on Cumulative Preference Shares.
Solution:
S. No. Item Main Head Sub-Head
(i) Public Deposits for 12 months Current Liabilities Short-Term Borrowings
(ii) Mining Rights Non-Current Assets Fixed Assets (Intangible)
(iii) Interest accrued and due on
Debentures
Current Liabilities Other Current Liabilities
(iv) Cheques and Drafts on hand Current Assets Cash and Cash Equivalents
(v) Investment in Property Non-Current Assets Non-Current Investments
(vi) Advance received from Customers Current Liabilities Other Current Liabilities
(vii) Interest accrued but not due on loans Current Liabilities Other Current Liabilities
(viii) Capital Reserve Shareholders' Funds Reserves and Surplus
(ix) Calls-in-Advance Current Liabilities Other Current Liabilities
(x) Guarantees given by the Company It is a Contingent
liability
and is disclosed in the Notes
to Accounts.
(xi) Arrears of dividends on Cumulative It is a Capital
Commitment
and is disclosed in the Notes
Preference Shares to Accounts.
QUES 6
Under what major headings and sub-headings the following items will be shown in a Company's Balance Sheet as per
Schedule III, Part I of the Companies Act, 2013Rs.
(i) Mortgage Loans;
(ii) Patents;
(iii) Investment in Debentures (Long-term);
(iv) General Reserve;
(v) Loan given to employee;
(vi) Money Received against Share Warrants;
Page 4
20-20
QUES 1
The authorised capital of Mercury Ltd. is Rs. 15,00,000 divided into 1,50,000 equity shares of Rs. 10 each. Out of these,
the company issued 1,00,000 equity shares for subscription to the public. The public applied for 98,000 equity shares and
all the money was duly received. How will you show the 'Share Capital A/c' in the Balance Sheet of Star Ltd as per Schedule
III, Part I of the Companies Act, 2013. Also prepare 'Notes to Accounts' for the same.
Solution:
BALANCE SHEET OF MERCURY LTD.
As at.............
Particulars Note Amount Amount
No. Current Year (Rs.) Previous Year (Rs.)
1. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 9,80,000
Notes to Accounts:
Particulars Amt.(Rs.)
1. Share Capital
Authorised Capital
1,50,000 Equity Shares of Rs. 10 each 15,00,000
Issued Capital
1,00,000 Equity Shares of Rs. 10 each 10,00,000
Subscribed Capital
Subscribed and fully paid-up
98,000 Equity Shares of Rs. 10 each 9,80,000
QUES 2
Moon Ltd. is registered with capital of Rs. 40,00,000 divided into 4,00,000 equity shares of Rs.10 each. The company
issued 2,00,000 equity shares for subscription to the public. The public applied for 1,90,000 equity shares and all the
money was duly received, except the final call of Rs.2 per share on 5,000 shares. 1,000 of the shares 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' for the same.
Solution:
BALANCE SHEET OF MOON LTD.
As at.............
Particulars Note Amount Amount
No. Current Year (Rs.) Previous Year (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 18,90,000
Notes to Accounts:
Particulars Amt. (Rs.)
1. Share Capital
Authorised Capital
4,00,000 Equity Shares of Rs. 10 each 40,00,000
Issued Capital
2,00,000 Equity Shares of Rs. 10 each 20,00,000
Subscribed Capital
Subscribed and fully paid-up
1,85,000 Equity Shares of Rs.10 each 18,50,000
Subscribed but not fully paid-up
4,000 Equity Shares of Rs. 10 each 40,000
Less: Calls-in-Arrears (4,ooo x Rs.2) 8,000 32,000
Add: Forfeited shares A/c (1;000 x Rs.8) 8,000
18,90,000
QUES 3
Ankit Ltd. was registered with an authorised capital of Rs. 1,20,00,000 divided into 1,20,000 Equity Shares of Rs. 100 each.
The company issued 6,000 Equity Shares as fully paid to the vendor for purchase of building and 50,000 Equity Shares
were subscribed for by the public. All the calls were made and were duly received except the second and final call of Rs.
20 per share on 700 shares. Show how "Share Capital" will appear in the Balance Sheet of the company. Also prepare
'Notes to Accounts' for the same.
Solution:
BALANCE SHEET OF ANKIT LTD.
As at.............
Particulars Note Amount Amount
No. Current Year (Rs.) Previous Year (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
Share Capital 1 55,86,000
Notes to Accounts:
1. Share Capital Amt.(Rs.)
Authorised Capital
1,20,000 Equity Shares of Rs. 100 each 1,20,00,000
Issued Capital
56,000 Equity Shares of Rs. 100 each 56,00,000
Subscribed Capital
Subscribed and fully paid-up
55,300 Equity Shares of Rs. 100 each 55,30,000
(Of the above, 6,000 shares have been issued for consideration other than cash)
Subscribed but not fully paid-up
700 Equity Shares of Rs. 100 each 70,000
Less: Calls-in-Arrears (700 x Rs.20) (14,000) 56,000
55,86,000
QUES 4
X Ltd. has an authorised capital of Rs. 15,00,000 divided into 1,00,000 Equity shares of Rs. 10 each and 50,000 9%
Preference Shares of Rs. 10 each. The company invited applications for all the preference shares and 90,000 equity shares.
All the preference shares were subscribed, called and paid, while subscriptions were received for only 85,000 equity
shares. During the first year, Rs. 8 per share were called. Ram holding 1,000 shares and Shyam holding 2,000 shares did
not pay first call of Rs. 2. Shyam's shares were forfeited after the first call and later on 1,500 of the forfeited shares were
reissued at Rs. 6 per share Rs. 8 called up.
(a) Show Share Capital in the Balance Sheet as per Schedule III, Part I of the Companies Act, 2013:
(b) Prepare relevant 'Notes to Accounts'. {CBSE, Circular Acad. 43, Modified}
Solution:
BALANCE SHEET OF X LTD.
as at 31
st
March, 2013 (Extract)
Particulars Note
No.
Amount Current
Year (Rs.)
Amount Previous
Year (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 11,77,000
(b) Reserves and Surplus 2 6,000
Total 11,83,000
Notes to Accounts:
Particulars Amt.(Rs.)
1. Share Capital
Authorised Capital
1,00,000 Equity Shares of Rs. 10 each 10,00,000
50,000; 9% Preference Shares of Rs. 10 each 5,00,000
15,00,000
Issued Capital
90,000 Equity Shares of Rs. 10 each 9,00,000
50,000; 9% Preference Shares of Rs. 10 each 5,00,000
14,00,000
Subscribed Capital
Subscribed and fully paid-up
50,000; 9% Preference Shares of Rs. 10 each 5,00,000
Subscribed but not fully paid-up
84,500 Equity Shares of Rs. 10 each, Rs. 8 called up 6,76,000
Less: Calls-in-Arrears d.ooo x Rs. 2) (2,000) 6,74,000
Add: Forfeited shares A/c (500 x Rs. 6) 3,000
11,77,000
2. Reserves and Surplus
Capital Reserve 6,000
QUES 5
Under what heads and sub-heads will the following items will appear in the Balance Sheet of a company as per Schedule
III, of the Companies Act, 2013:
(i) Public Deposit for 12 months;
(ii) Mining Rights;
(iii) Interest accrued and due on debentures;
(iv) Cheques and Drafts on hand;
(v) Investment in Property;
(vi) Advance received from Customers;
(vii) Interest accrued but not due on Loans;
(viii) Capital Reserve;
(ix) Calls-in-Advance;
(x) Guarantees given by the Company;
(xi) Arrears of dividends on Cumulative Preference Shares.
Solution:
S. No. Item Main Head Sub-Head
(i) Public Deposits for 12 months Current Liabilities Short-Term Borrowings
(ii) Mining Rights Non-Current Assets Fixed Assets (Intangible)
(iii) Interest accrued and due on
Debentures
Current Liabilities Other Current Liabilities
(iv) Cheques and Drafts on hand Current Assets Cash and Cash Equivalents
(v) Investment in Property Non-Current Assets Non-Current Investments
(vi) Advance received from Customers Current Liabilities Other Current Liabilities
(vii) Interest accrued but not due on loans Current Liabilities Other Current Liabilities
(viii) Capital Reserve Shareholders' Funds Reserves and Surplus
(ix) Calls-in-Advance Current Liabilities Other Current Liabilities
(x) Guarantees given by the Company It is a Contingent
liability
and is disclosed in the Notes
to Accounts.
(xi) Arrears of dividends on Cumulative It is a Capital
Commitment
and is disclosed in the Notes
Preference Shares to Accounts.
QUES 6
Under what major headings and sub-headings the following items will be shown in a Company's Balance Sheet as per
Schedule III, Part I of the Companies Act, 2013Rs.
(i) Mortgage Loans;
(ii) Patents;
(iii) Investment in Debentures (Long-term);
(iv) General Reserve;
(v) Loan given to employee;
(vi) Money Received against Share Warrants;
(vii) Prepaid Rent;
(viii) Advance payment of tax;
(ix) Premium on Redemption of Debentures;
(x) Deferred Tax Assets (Net);
(xi) Claims against the company not acknowledged as debts;
(xii) Uncalled liability on shares.
Solution:
S. No. Item Main Head Sub-Head
(I) Mortgage Loans Non-Current
Liabilities
Long-Term Borrowings
(ii) Patents Non-Current Assets Fixed Assets (Intangible)
(iii) Investment in Debenture of a
Company
Non-Current Assets Non-Current Investments
(iv) General Reserve Shareholders' Funds Reserves and Surplus
(v) Loan given to Employee Current Assets Short-term Loans and Advances
(vi) Money Received against Share Shareholders' Funds —
Warrants
(vii) Prepaid Rent Current Assets Other Current Assets
(viii) Advance Payment of Tax Current Assets Other Current Assets
(ix) Premium on Redemption of Non-Current
Liabilities
Other Long-term Liabilities
Debentures
(x) Deferred Tax Assets (Net) Non-Current Assets —
(xi) Claims against the company not It is a Contingent liability and is disclosed in the Notes to
acknowledged as debts Accounts.
(xii) Uncalled liability on shares It is a Capital Commitment and is disclosed in the Notes
to Accounts.
QUES 7
From the following information extracted from the books of XY Ltd., prepare a Balance Sheet of the company as at 31
st
March, 2015 as per Schedule III of the Companies Act, 2013.
Particulars Amt. (Rs.)
Long-Term Borrowings 5,00,000
Trade Payables 30,000
Share Capital 4,00,000
Reserve and Surplus 90,000
Fixed Assets (Tangible) 8,00,000
Inventories 20,000
Trade Receivables 80,000
Cash and Cash Equivalents 1,20,000
Solution:
BALANCE SHEET OF XY LTD. as at 31
st
March, 2015
Particulars Note No. 31.3.15(Rs.) 31.3.14(Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 4,00,000
(b) Reserves and Surplus 90,000
2. Non-Current Liabilities
Long-term Borrowings 5,00,000
3. Current Liabilities
Trade Payables 30,000
Total 10,20,000
II. ASSETS
1. Non-Current Assets
Fixed Assets (Tangible) 8,00,000
Page 5
20-20
QUES 1
The authorised capital of Mercury Ltd. is Rs. 15,00,000 divided into 1,50,000 equity shares of Rs. 10 each. Out of these,
the company issued 1,00,000 equity shares for subscription to the public. The public applied for 98,000 equity shares and
all the money was duly received. How will you show the 'Share Capital A/c' in the Balance Sheet of Star Ltd as per Schedule
III, Part I of the Companies Act, 2013. Also prepare 'Notes to Accounts' for the same.
Solution:
BALANCE SHEET OF MERCURY LTD.
As at.............
Particulars Note Amount Amount
No. Current Year (Rs.) Previous Year (Rs.)
1. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 9,80,000
Notes to Accounts:
Particulars Amt.(Rs.)
1. Share Capital
Authorised Capital
1,50,000 Equity Shares of Rs. 10 each 15,00,000
Issued Capital
1,00,000 Equity Shares of Rs. 10 each 10,00,000
Subscribed Capital
Subscribed and fully paid-up
98,000 Equity Shares of Rs. 10 each 9,80,000
QUES 2
Moon Ltd. is registered with capital of Rs. 40,00,000 divided into 4,00,000 equity shares of Rs.10 each. The company
issued 2,00,000 equity shares for subscription to the public. The public applied for 1,90,000 equity shares and all the
money was duly received, except the final call of Rs.2 per share on 5,000 shares. 1,000 of the shares 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' for the same.
Solution:
BALANCE SHEET OF MOON LTD.
As at.............
Particulars Note Amount Amount
No. Current Year (Rs.) Previous Year (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 18,90,000
Notes to Accounts:
Particulars Amt. (Rs.)
1. Share Capital
Authorised Capital
4,00,000 Equity Shares of Rs. 10 each 40,00,000
Issued Capital
2,00,000 Equity Shares of Rs. 10 each 20,00,000
Subscribed Capital
Subscribed and fully paid-up
1,85,000 Equity Shares of Rs.10 each 18,50,000
Subscribed but not fully paid-up
4,000 Equity Shares of Rs. 10 each 40,000
Less: Calls-in-Arrears (4,ooo x Rs.2) 8,000 32,000
Add: Forfeited shares A/c (1;000 x Rs.8) 8,000
18,90,000
QUES 3
Ankit Ltd. was registered with an authorised capital of Rs. 1,20,00,000 divided into 1,20,000 Equity Shares of Rs. 100 each.
The company issued 6,000 Equity Shares as fully paid to the vendor for purchase of building and 50,000 Equity Shares
were subscribed for by the public. All the calls were made and were duly received except the second and final call of Rs.
20 per share on 700 shares. Show how "Share Capital" will appear in the Balance Sheet of the company. Also prepare
'Notes to Accounts' for the same.
Solution:
BALANCE SHEET OF ANKIT LTD.
As at.............
Particulars Note Amount Amount
No. Current Year (Rs.) Previous Year (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
Share Capital 1 55,86,000
Notes to Accounts:
1. Share Capital Amt.(Rs.)
Authorised Capital
1,20,000 Equity Shares of Rs. 100 each 1,20,00,000
Issued Capital
56,000 Equity Shares of Rs. 100 each 56,00,000
Subscribed Capital
Subscribed and fully paid-up
55,300 Equity Shares of Rs. 100 each 55,30,000
(Of the above, 6,000 shares have been issued for consideration other than cash)
Subscribed but not fully paid-up
700 Equity Shares of Rs. 100 each 70,000
Less: Calls-in-Arrears (700 x Rs.20) (14,000) 56,000
55,86,000
QUES 4
X Ltd. has an authorised capital of Rs. 15,00,000 divided into 1,00,000 Equity shares of Rs. 10 each and 50,000 9%
Preference Shares of Rs. 10 each. The company invited applications for all the preference shares and 90,000 equity shares.
All the preference shares were subscribed, called and paid, while subscriptions were received for only 85,000 equity
shares. During the first year, Rs. 8 per share were called. Ram holding 1,000 shares and Shyam holding 2,000 shares did
not pay first call of Rs. 2. Shyam's shares were forfeited after the first call and later on 1,500 of the forfeited shares were
reissued at Rs. 6 per share Rs. 8 called up.
(a) Show Share Capital in the Balance Sheet as per Schedule III, Part I of the Companies Act, 2013:
(b) Prepare relevant 'Notes to Accounts'. {CBSE, Circular Acad. 43, Modified}
Solution:
BALANCE SHEET OF X LTD.
as at 31
st
March, 2013 (Extract)
Particulars Note
No.
Amount Current
Year (Rs.)
Amount Previous
Year (Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 1 11,77,000
(b) Reserves and Surplus 2 6,000
Total 11,83,000
Notes to Accounts:
Particulars Amt.(Rs.)
1. Share Capital
Authorised Capital
1,00,000 Equity Shares of Rs. 10 each 10,00,000
50,000; 9% Preference Shares of Rs. 10 each 5,00,000
15,00,000
Issued Capital
90,000 Equity Shares of Rs. 10 each 9,00,000
50,000; 9% Preference Shares of Rs. 10 each 5,00,000
14,00,000
Subscribed Capital
Subscribed and fully paid-up
50,000; 9% Preference Shares of Rs. 10 each 5,00,000
Subscribed but not fully paid-up
84,500 Equity Shares of Rs. 10 each, Rs. 8 called up 6,76,000
Less: Calls-in-Arrears d.ooo x Rs. 2) (2,000) 6,74,000
Add: Forfeited shares A/c (500 x Rs. 6) 3,000
11,77,000
2. Reserves and Surplus
Capital Reserve 6,000
QUES 5
Under what heads and sub-heads will the following items will appear in the Balance Sheet of a company as per Schedule
III, of the Companies Act, 2013:
(i) Public Deposit for 12 months;
(ii) Mining Rights;
(iii) Interest accrued and due on debentures;
(iv) Cheques and Drafts on hand;
(v) Investment in Property;
(vi) Advance received from Customers;
(vii) Interest accrued but not due on Loans;
(viii) Capital Reserve;
(ix) Calls-in-Advance;
(x) Guarantees given by the Company;
(xi) Arrears of dividends on Cumulative Preference Shares.
Solution:
S. No. Item Main Head Sub-Head
(i) Public Deposits for 12 months Current Liabilities Short-Term Borrowings
(ii) Mining Rights Non-Current Assets Fixed Assets (Intangible)
(iii) Interest accrued and due on
Debentures
Current Liabilities Other Current Liabilities
(iv) Cheques and Drafts on hand Current Assets Cash and Cash Equivalents
(v) Investment in Property Non-Current Assets Non-Current Investments
(vi) Advance received from Customers Current Liabilities Other Current Liabilities
(vii) Interest accrued but not due on loans Current Liabilities Other Current Liabilities
(viii) Capital Reserve Shareholders' Funds Reserves and Surplus
(ix) Calls-in-Advance Current Liabilities Other Current Liabilities
(x) Guarantees given by the Company It is a Contingent
liability
and is disclosed in the Notes
to Accounts.
(xi) Arrears of dividends on Cumulative It is a Capital
Commitment
and is disclosed in the Notes
Preference Shares to Accounts.
QUES 6
Under what major headings and sub-headings the following items will be shown in a Company's Balance Sheet as per
Schedule III, Part I of the Companies Act, 2013Rs.
(i) Mortgage Loans;
(ii) Patents;
(iii) Investment in Debentures (Long-term);
(iv) General Reserve;
(v) Loan given to employee;
(vi) Money Received against Share Warrants;
(vii) Prepaid Rent;
(viii) Advance payment of tax;
(ix) Premium on Redemption of Debentures;
(x) Deferred Tax Assets (Net);
(xi) Claims against the company not acknowledged as debts;
(xii) Uncalled liability on shares.
Solution:
S. No. Item Main Head Sub-Head
(I) Mortgage Loans Non-Current
Liabilities
Long-Term Borrowings
(ii) Patents Non-Current Assets Fixed Assets (Intangible)
(iii) Investment in Debenture of a
Company
Non-Current Assets Non-Current Investments
(iv) General Reserve Shareholders' Funds Reserves and Surplus
(v) Loan given to Employee Current Assets Short-term Loans and Advances
(vi) Money Received against Share Shareholders' Funds —
Warrants
(vii) Prepaid Rent Current Assets Other Current Assets
(viii) Advance Payment of Tax Current Assets Other Current Assets
(ix) Premium on Redemption of Non-Current
Liabilities
Other Long-term Liabilities
Debentures
(x) Deferred Tax Assets (Net) Non-Current Assets —
(xi) Claims against the company not It is a Contingent liability and is disclosed in the Notes to
acknowledged as debts Accounts.
(xii) Uncalled liability on shares It is a Capital Commitment and is disclosed in the Notes
to Accounts.
QUES 7
From the following information extracted from the books of XY Ltd., prepare a Balance Sheet of the company as at 31
st
March, 2015 as per Schedule III of the Companies Act, 2013.
Particulars Amt. (Rs.)
Long-Term Borrowings 5,00,000
Trade Payables 30,000
Share Capital 4,00,000
Reserve and Surplus 90,000
Fixed Assets (Tangible) 8,00,000
Inventories 20,000
Trade Receivables 80,000
Cash and Cash Equivalents 1,20,000
Solution:
BALANCE SHEET OF XY LTD. as at 31
st
March, 2015
Particulars Note No. 31.3.15(Rs.) 31.3.14(Rs.)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital 4,00,000
(b) Reserves and Surplus 90,000
2. Non-Current Liabilities
Long-term Borrowings 5,00,000
3. Current Liabilities
Trade Payables 30,000
Total 10,20,000
II. ASSETS
1. Non-Current Assets
Fixed Assets (Tangible) 8,00,000
2. Current Assets
(a) Inventories 20,000
(b) Trade Receivables 80,000
(c) Cash and Cash Equivalents 1,20,000
Total 10,20,000
QUES 8
From the following information extracted from the books of AB Ltd., prepare a Balance Sheet of the company as at 31
st
March, 2015 as per Schedule III of the Companies Act, 2013.
Particulars Amt. (Rs.)
Equity Share Capital (25,000 Equity Shares of f 10 each) 2,50,000
14% Debentures 70,000
Plant and Machinery 1,20,000
Goodwill 18,000
Land and Building 1,40,000
Cash in Hand 11,000
Patents 12,000
Creditors 30,000
Bank Balance 70,000
Debtors 35,000
Bills Payables 10,000
Vehicles 40,000
General Reserve 30,000
Bills Receivables 15,000
Capital Redemption Reserve 50,000
Surplus i.e. Balance in the Statement of Profit and Loss (Dr. Balance) (10,000)
Provision for Tax 10,000
Investment in Property 20,000
Inventories 4,000
Proposed Dividend 25,000
Public Deposits 20,000
Solution:
BALANCE SHEET OF AB LTD.
as at 31
st
March, 2015
Particulars Note No. 31.3.2015 (Rs.)
I. Equity and Liabilities
1. Shareholders' Funds
(a) Share Capital 1 2,50,000
(b) Reserves and Surplus 2 70,000
2. Non-Current Liabilities
Long-term Borrowings 3 90,000
3. Current Liabilities
(a) Trade Payables 4 40,000
(b) Short-term Provisions 5 35,000
Total 4,85,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets 6 3,00,000
(ii) Intangible Assets 7 30,000
(b) Non-Current Investments 8 20,000
2. Current Assets
(a) Inventories 4,000
(b) Trade Receivables 9 50,000
(c) Cash and Cash Equivalents 10 81,000
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FAQs on Important Questions - Financial Statements of Companies - Crash Course of Accountancy - Class 12 - Commerce
| 1. What are financial statements? |  |
Ans. Financial statements are documents that provide a summary of a company's financial activities, performance, and position. They include the balance sheet, income statement, cash flow statement, and statement of changes in equity.
| 2. Why are financial statements important for companies? | |
Ans. Financial statements are important for companies because they provide crucial information about the company's financial health, performance, and potential risks. They help in making informed decisions, attracting investors, obtaining loans, and complying with legal and regulatory requirements.
| 3. How often should companies prepare financial statements? | |
Ans. The frequency of preparing financial statements depends on the company's size, legal requirements, and internal policies. Most companies prepare financial statements annually, while larger companies may prepare them quarterly or even monthly. It is important to maintain regular and accurate financial records for internal and external stakeholders.
| 4. What is the purpose of the balance sheet in financial statements? | |
Ans. The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and shareholders' equity. The balance sheet helps in assessing the company's liquidity, solvency, and overall financial stability.
| 5. How can investors use financial statements to assess a company's performance? | |
Ans. Investors can use financial statements to analyze a company's profitability, liquidity, efficiency, and growth potential. They can evaluate key financial ratios, such as return on investment, debt-to-equity ratio, and operating margin, to assess the company's financial performance and compare it with industry benchmarks. Financial statements also provide insights into the company's cash flow and ability to generate sustainable earnings.
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