Financial Statements of Companies - 2 Important Question & Answer | Accounting for CA Intermediate (Old Scheme) PDF Download

 Page 1


Q-23 On 31st March, 2020, Om Ltd. provides to you the following ledger balances after preparing its Profit
and Loss Account for the year ended 31st March, 2020:
Credit Balances
`
Equity shares capital (fully paid shares of ` 10 each) 1,05,00,000
General Reserve 21,84,000
Loan from State Finance Corporation 15,75,000
(Secured by hypothecation of Plant & Machinery - Repayable
within one year ` 3,00,000)
Loans: Unsecured (Long term) 12,70,500
Sundry Creditors for goods & expenses (Payable within 6 months) 21,00,000
Profit & Loss Account 10,50,000
Provision for Taxation 12,25,350
199,04,850
Debit Balances :
`
Calls in arrear 10,500
Land 21,00,000
Buildings 30,75,000
Plant and Machinery 55,12,500
Furniture & Fixture 5,25,000
Inventories : Finished goods 21,00,000
Raw Materials 5,25,000
Trade Receivables 21,00,000
Advances: Short-term 4,48,350
Cash in hand 3,15,000
Balances with banks 25,93,500
Patents & Trade marks 6,00,000
199,04,850
The following additional information is also provided in respect of the above balances:
(i) 6,30,000 fully paid equity shares were allotted as consideration for land & buildings.
(ii) Cost of Building ` 42,00,000
Cost of Plant & Machinery ` 73,50,000
Cost of Furniture & Fixture ` 6,56,250
(iii) Trade receivables for ` 5,70,000 are due for more than 6 months.
(iv) The amount of Balances with Bank includes ` 27,000 with a bank which is not a scheduled Bank and
the deposits of ` 7,50,000 are for a period of 9 months.
(v) Unsecured loan includes ` 3,00,000 from a Bank and ` 1,50,000 from related parties.
You are not required to give previous year figures. You are required to prepare the Balance Sheet of the
Company as on 31st March, 2020 as required under Schedule III of the Companies Act, 2013.
Join Us on Telegram http://t.me/canotes_ipcc
Page 2


Q-23 On 31st March, 2020, Om Ltd. provides to you the following ledger balances after preparing its Profit
and Loss Account for the year ended 31st March, 2020:
Credit Balances
`
Equity shares capital (fully paid shares of ` 10 each) 1,05,00,000
General Reserve 21,84,000
Loan from State Finance Corporation 15,75,000
(Secured by hypothecation of Plant & Machinery - Repayable
within one year ` 3,00,000)
Loans: Unsecured (Long term) 12,70,500
Sundry Creditors for goods & expenses (Payable within 6 months) 21,00,000
Profit & Loss Account 10,50,000
Provision for Taxation 12,25,350
199,04,850
Debit Balances :
`
Calls in arrear 10,500
Land 21,00,000
Buildings 30,75,000
Plant and Machinery 55,12,500
Furniture & Fixture 5,25,000
Inventories : Finished goods 21,00,000
Raw Materials 5,25,000
Trade Receivables 21,00,000
Advances: Short-term 4,48,350
Cash in hand 3,15,000
Balances with banks 25,93,500
Patents & Trade marks 6,00,000
199,04,850
The following additional information is also provided in respect of the above balances:
(i) 6,30,000 fully paid equity shares were allotted as consideration for land & buildings.
(ii) Cost of Building ` 42,00,000
Cost of Plant & Machinery ` 73,50,000
Cost of Furniture & Fixture ` 6,56,250
(iii) Trade receivables for ` 5,70,000 are due for more than 6 months.
(iv) The amount of Balances with Bank includes ` 27,000 with a bank which is not a scheduled Bank and
the deposits of ` 7,50,000 are for a period of 9 months.
(v) Unsecured loan includes ` 3,00,000 from a Bank and ` 1,50,000 from related parties.
You are not required to give previous year figures. You are required to prepare the Balance Sheet of the
Company as on 31st March, 2020 as required under Schedule III of the Companies Act, 2013.
Join Us on Telegram http://t.me/canotes_ipcc
Ans. Om Ltd.
Balance Sheet as on 31st March, 2020
Particulars Notes Figures at the end
of current reporting
period (`)
Equity and Liabilities
1 Shareholders’ funds
a Share capital 1 1,04,89,500
b Reserves and Surplus 2 32,34,000
2 Non-current liabilities
a Long-term borrowings 3 25,45,500
3 Current liabilities
a Trade Payables 21,00,000
b Other current liabilities 4 3,00,000
c Short-term provisions 5 12,25,350
Total 1,98,94,350
Assets
1 Non-current assets
a Property, Plant and Equipment 6 1,12,12,500
b Intangible assets (Patents & Trade Marks) 6,00,000
2 Current assets
a Inventories 7 26,25,000
b Trade receivables 8 21,00,000
c Cash and cash equivalents 9 29,08,500
d Short-term loans and advances 4,48,350
Total 1,98,94,350
Notes to accounts
 `
1 Share Capital
Equity share capital
Issued, subscribed and called up
10,50,000 Equity Shares of ` 10 each
(Out of the above 6,30,000 shares have
been issued for consideration
other than cash) 1,05,00,000
Less: Calls in arrears (10,500) 1,04,89,500
Total 1,04,89,500
2 Reserves and Surplus
General Reserve 21,84,000
Surplus (Profit & Loss A/c) 10,50,000
Total 32,34,000
Join Us on Telegram http://t.me/canotes_ipcc
Page 3


Q-23 On 31st March, 2020, Om Ltd. provides to you the following ledger balances after preparing its Profit
and Loss Account for the year ended 31st March, 2020:
Credit Balances
`
Equity shares capital (fully paid shares of ` 10 each) 1,05,00,000
General Reserve 21,84,000
Loan from State Finance Corporation 15,75,000
(Secured by hypothecation of Plant & Machinery - Repayable
within one year ` 3,00,000)
Loans: Unsecured (Long term) 12,70,500
Sundry Creditors for goods & expenses (Payable within 6 months) 21,00,000
Profit & Loss Account 10,50,000
Provision for Taxation 12,25,350
199,04,850
Debit Balances :
`
Calls in arrear 10,500
Land 21,00,000
Buildings 30,75,000
Plant and Machinery 55,12,500
Furniture & Fixture 5,25,000
Inventories : Finished goods 21,00,000
Raw Materials 5,25,000
Trade Receivables 21,00,000
Advances: Short-term 4,48,350
Cash in hand 3,15,000
Balances with banks 25,93,500
Patents & Trade marks 6,00,000
199,04,850
The following additional information is also provided in respect of the above balances:
(i) 6,30,000 fully paid equity shares were allotted as consideration for land & buildings.
(ii) Cost of Building ` 42,00,000
Cost of Plant & Machinery ` 73,50,000
Cost of Furniture & Fixture ` 6,56,250
(iii) Trade receivables for ` 5,70,000 are due for more than 6 months.
(iv) The amount of Balances with Bank includes ` 27,000 with a bank which is not a scheduled Bank and
the deposits of ` 7,50,000 are for a period of 9 months.
(v) Unsecured loan includes ` 3,00,000 from a Bank and ` 1,50,000 from related parties.
You are not required to give previous year figures. You are required to prepare the Balance Sheet of the
Company as on 31st March, 2020 as required under Schedule III of the Companies Act, 2013.
Join Us on Telegram http://t.me/canotes_ipcc
Ans. Om Ltd.
Balance Sheet as on 31st March, 2020
Particulars Notes Figures at the end
of current reporting
period (`)
Equity and Liabilities
1 Shareholders’ funds
a Share capital 1 1,04,89,500
b Reserves and Surplus 2 32,34,000
2 Non-current liabilities
a Long-term borrowings 3 25,45,500
3 Current liabilities
a Trade Payables 21,00,000
b Other current liabilities 4 3,00,000
c Short-term provisions 5 12,25,350
Total 1,98,94,350
Assets
1 Non-current assets
a Property, Plant and Equipment 6 1,12,12,500
b Intangible assets (Patents & Trade Marks) 6,00,000
2 Current assets
a Inventories 7 26,25,000
b Trade receivables 8 21,00,000
c Cash and cash equivalents 9 29,08,500
d Short-term loans and advances 4,48,350
Total 1,98,94,350
Notes to accounts
 `
1 Share Capital
Equity share capital
Issued, subscribed and called up
10,50,000 Equity Shares of ` 10 each
(Out of the above 6,30,000 shares have
been issued for consideration
other than cash) 1,05,00,000
Less: Calls in arrears (10,500) 1,04,89,500
Total 1,04,89,500
2 Reserves and Surplus
General Reserve 21,84,000
Surplus (Profit & Loss A/c) 10,50,000
Total 32,34,000
Join Us on Telegram http://t.me/canotes_ipcc
3 Long-term borrowings
Secured
Term Loans
Loan from State Finance Corporation
(` 15,75,000 less ` 3,00,000)
(Secured by hypothecation of
Plant and Machinery) 12,75,000
Unsecured
Bank Loan 3,00,000
Loan from related parties 1,50,000
Others 8,20,500 12,70,500
Total 25,45,500
4 Other current liabilities
Loan Instalment repayable within one year 3,00,000
5 Short-term provisions
Provision for taxation 12,25,350
6 Property, Plant and Equipment
Land 21,00,000
Buildings 42,00,000
Less: Depreciation (11,25,000) 30,75,000
Plant & Machinery 73,50,000
Less: Depreciation (18,37,500) 55,12,500
Furniture & Fittings 6,56,250
Less: Depreciation (1,31,250) 5,25,000
Total 1,12,12,500
7 Inventories
Raw Material 5,25,000
Finished goods 21,00,000
26,25,000
8 Trade receivables
Debts outstanding for a period exceeding six months 5,70,000
Other Debts 15,30,000
Total 21,00,000
9 Cash and cash equivalents
Cash at bank with Scheduled Banks
including Bank deposits for period of
9 months amounting ` 7,50,000 25,66,500
with others 27,000 25,93,500
Cash in hand 3,15,000
Total 29,08,500
Join Us on Telegram http://t.me/canotes_ipcc
Page 4


Q-23 On 31st March, 2020, Om Ltd. provides to you the following ledger balances after preparing its Profit
and Loss Account for the year ended 31st March, 2020:
Credit Balances
`
Equity shares capital (fully paid shares of ` 10 each) 1,05,00,000
General Reserve 21,84,000
Loan from State Finance Corporation 15,75,000
(Secured by hypothecation of Plant & Machinery - Repayable
within one year ` 3,00,000)
Loans: Unsecured (Long term) 12,70,500
Sundry Creditors for goods & expenses (Payable within 6 months) 21,00,000
Profit & Loss Account 10,50,000
Provision for Taxation 12,25,350
199,04,850
Debit Balances :
`
Calls in arrear 10,500
Land 21,00,000
Buildings 30,75,000
Plant and Machinery 55,12,500
Furniture & Fixture 5,25,000
Inventories : Finished goods 21,00,000
Raw Materials 5,25,000
Trade Receivables 21,00,000
Advances: Short-term 4,48,350
Cash in hand 3,15,000
Balances with banks 25,93,500
Patents & Trade marks 6,00,000
199,04,850
The following additional information is also provided in respect of the above balances:
(i) 6,30,000 fully paid equity shares were allotted as consideration for land & buildings.
(ii) Cost of Building ` 42,00,000
Cost of Plant & Machinery ` 73,50,000
Cost of Furniture & Fixture ` 6,56,250
(iii) Trade receivables for ` 5,70,000 are due for more than 6 months.
(iv) The amount of Balances with Bank includes ` 27,000 with a bank which is not a scheduled Bank and
the deposits of ` 7,50,000 are for a period of 9 months.
(v) Unsecured loan includes ` 3,00,000 from a Bank and ` 1,50,000 from related parties.
You are not required to give previous year figures. You are required to prepare the Balance Sheet of the
Company as on 31st March, 2020 as required under Schedule III of the Companies Act, 2013.
Join Us on Telegram http://t.me/canotes_ipcc
Ans. Om Ltd.
Balance Sheet as on 31st March, 2020
Particulars Notes Figures at the end
of current reporting
period (`)
Equity and Liabilities
1 Shareholders’ funds
a Share capital 1 1,04,89,500
b Reserves and Surplus 2 32,34,000
2 Non-current liabilities
a Long-term borrowings 3 25,45,500
3 Current liabilities
a Trade Payables 21,00,000
b Other current liabilities 4 3,00,000
c Short-term provisions 5 12,25,350
Total 1,98,94,350
Assets
1 Non-current assets
a Property, Plant and Equipment 6 1,12,12,500
b Intangible assets (Patents & Trade Marks) 6,00,000
2 Current assets
a Inventories 7 26,25,000
b Trade receivables 8 21,00,000
c Cash and cash equivalents 9 29,08,500
d Short-term loans and advances 4,48,350
Total 1,98,94,350
Notes to accounts
 `
1 Share Capital
Equity share capital
Issued, subscribed and called up
10,50,000 Equity Shares of ` 10 each
(Out of the above 6,30,000 shares have
been issued for consideration
other than cash) 1,05,00,000
Less: Calls in arrears (10,500) 1,04,89,500
Total 1,04,89,500
2 Reserves and Surplus
General Reserve 21,84,000
Surplus (Profit & Loss A/c) 10,50,000
Total 32,34,000
Join Us on Telegram http://t.me/canotes_ipcc
3 Long-term borrowings
Secured
Term Loans
Loan from State Finance Corporation
(` 15,75,000 less ` 3,00,000)
(Secured by hypothecation of
Plant and Machinery) 12,75,000
Unsecured
Bank Loan 3,00,000
Loan from related parties 1,50,000
Others 8,20,500 12,70,500
Total 25,45,500
4 Other current liabilities
Loan Instalment repayable within one year 3,00,000
5 Short-term provisions
Provision for taxation 12,25,350
6 Property, Plant and Equipment
Land 21,00,000
Buildings 42,00,000
Less: Depreciation (11,25,000) 30,75,000
Plant & Machinery 73,50,000
Less: Depreciation (18,37,500) 55,12,500
Furniture & Fittings 6,56,250
Less: Depreciation (1,31,250) 5,25,000
Total 1,12,12,500
7 Inventories
Raw Material 5,25,000
Finished goods 21,00,000
26,25,000
8 Trade receivables
Debts outstanding for a period exceeding six months 5,70,000
Other Debts 15,30,000
Total 21,00,000
9 Cash and cash equivalents
Cash at bank with Scheduled Banks
including Bank deposits for period of
9 months amounting ` 7,50,000 25,66,500
with others 27,000 25,93,500
Cash in hand 3,15,000
Total 29,08,500
Join Us on Telegram http://t.me/canotes_ipcc
Q-24 Kartik Ltd. is a non-investment company and has been incurring losses for the past few years. The
company provides the following information for the current year:
(` in lakhs)
Paid up equity share capital 270
Paid up Preference share capital 45
Reserves (including Revaluation reserve ` 22.5 lakhs) 337.5
Securities premium 90
Long term loans 90
Deposits repayable after one year 45
Application money pending allotment 1620
Accumulated losses not written off 45
Investments 405
Kartik Ltd. has only one whole-time director, Mr. Kumar. You are required to calculate the amount of
maximum remuneration that can be paid to him as per provisions of the Companies Act, 2013, if no
special resolution is passed at the general meeting of the company in respect of payment of
remuneration.
Ans. Calculation of effective capital and maximum amount of monthly remuneration
(` in lakhs)
Paid up equity share capital 270
Paid up Preference share capital 45
Reserve excluding Revaluation reserve (337.5- 22.5) 315
Securities premium 90
Long term loans 90
Deposits repayable after one year 45
855
Less: Accumulated losses not written off (45)
Investments (405)
Effective capital for the purpose of managerial remuneration 405
Kartik Ltd. is incurring losses and no special resolution has been passed by the company for payment of
remuneration. Effective capital of the company is less than 5 crores, maximum remuneration payable
to the Managing Director should be @ `60,00,000 per annum. (Revaluation reserve and application
money pending allotment are not included while computing effective capital of Kartik Ltd.)
Join Us on Telegram http://t.me/canotes_ipcc
Page 5


Q-23 On 31st March, 2020, Om Ltd. provides to you the following ledger balances after preparing its Profit
and Loss Account for the year ended 31st March, 2020:
Credit Balances
`
Equity shares capital (fully paid shares of ` 10 each) 1,05,00,000
General Reserve 21,84,000
Loan from State Finance Corporation 15,75,000
(Secured by hypothecation of Plant & Machinery - Repayable
within one year ` 3,00,000)
Loans: Unsecured (Long term) 12,70,500
Sundry Creditors for goods & expenses (Payable within 6 months) 21,00,000
Profit & Loss Account 10,50,000
Provision for Taxation 12,25,350
199,04,850
Debit Balances :
`
Calls in arrear 10,500
Land 21,00,000
Buildings 30,75,000
Plant and Machinery 55,12,500
Furniture & Fixture 5,25,000
Inventories : Finished goods 21,00,000
Raw Materials 5,25,000
Trade Receivables 21,00,000
Advances: Short-term 4,48,350
Cash in hand 3,15,000
Balances with banks 25,93,500
Patents & Trade marks 6,00,000
199,04,850
The following additional information is also provided in respect of the above balances:
(i) 6,30,000 fully paid equity shares were allotted as consideration for land & buildings.
(ii) Cost of Building ` 42,00,000
Cost of Plant & Machinery ` 73,50,000
Cost of Furniture & Fixture ` 6,56,250
(iii) Trade receivables for ` 5,70,000 are due for more than 6 months.
(iv) The amount of Balances with Bank includes ` 27,000 with a bank which is not a scheduled Bank and
the deposits of ` 7,50,000 are for a period of 9 months.
(v) Unsecured loan includes ` 3,00,000 from a Bank and ` 1,50,000 from related parties.
You are not required to give previous year figures. You are required to prepare the Balance Sheet of the
Company as on 31st March, 2020 as required under Schedule III of the Companies Act, 2013.
Join Us on Telegram http://t.me/canotes_ipcc
Ans. Om Ltd.
Balance Sheet as on 31st March, 2020
Particulars Notes Figures at the end
of current reporting
period (`)
Equity and Liabilities
1 Shareholders’ funds
a Share capital 1 1,04,89,500
b Reserves and Surplus 2 32,34,000
2 Non-current liabilities
a Long-term borrowings 3 25,45,500
3 Current liabilities
a Trade Payables 21,00,000
b Other current liabilities 4 3,00,000
c Short-term provisions 5 12,25,350
Total 1,98,94,350
Assets
1 Non-current assets
a Property, Plant and Equipment 6 1,12,12,500
b Intangible assets (Patents & Trade Marks) 6,00,000
2 Current assets
a Inventories 7 26,25,000
b Trade receivables 8 21,00,000
c Cash and cash equivalents 9 29,08,500
d Short-term loans and advances 4,48,350
Total 1,98,94,350
Notes to accounts
 `
1 Share Capital
Equity share capital
Issued, subscribed and called up
10,50,000 Equity Shares of ` 10 each
(Out of the above 6,30,000 shares have
been issued for consideration
other than cash) 1,05,00,000
Less: Calls in arrears (10,500) 1,04,89,500
Total 1,04,89,500
2 Reserves and Surplus
General Reserve 21,84,000
Surplus (Profit & Loss A/c) 10,50,000
Total 32,34,000
Join Us on Telegram http://t.me/canotes_ipcc
3 Long-term borrowings
Secured
Term Loans
Loan from State Finance Corporation
(` 15,75,000 less ` 3,00,000)
(Secured by hypothecation of
Plant and Machinery) 12,75,000
Unsecured
Bank Loan 3,00,000
Loan from related parties 1,50,000
Others 8,20,500 12,70,500
Total 25,45,500
4 Other current liabilities
Loan Instalment repayable within one year 3,00,000
5 Short-term provisions
Provision for taxation 12,25,350
6 Property, Plant and Equipment
Land 21,00,000
Buildings 42,00,000
Less: Depreciation (11,25,000) 30,75,000
Plant & Machinery 73,50,000
Less: Depreciation (18,37,500) 55,12,500
Furniture & Fittings 6,56,250
Less: Depreciation (1,31,250) 5,25,000
Total 1,12,12,500
7 Inventories
Raw Material 5,25,000
Finished goods 21,00,000
26,25,000
8 Trade receivables
Debts outstanding for a period exceeding six months 5,70,000
Other Debts 15,30,000
Total 21,00,000
9 Cash and cash equivalents
Cash at bank with Scheduled Banks
including Bank deposits for period of
9 months amounting ` 7,50,000 25,66,500
with others 27,000 25,93,500
Cash in hand 3,15,000
Total 29,08,500
Join Us on Telegram http://t.me/canotes_ipcc
Q-24 Kartik Ltd. is a non-investment company and has been incurring losses for the past few years. The
company provides the following information for the current year:
(` in lakhs)
Paid up equity share capital 270
Paid up Preference share capital 45
Reserves (including Revaluation reserve ` 22.5 lakhs) 337.5
Securities premium 90
Long term loans 90
Deposits repayable after one year 45
Application money pending allotment 1620
Accumulated losses not written off 45
Investments 405
Kartik Ltd. has only one whole-time director, Mr. Kumar. You are required to calculate the amount of
maximum remuneration that can be paid to him as per provisions of the Companies Act, 2013, if no
special resolution is passed at the general meeting of the company in respect of payment of
remuneration.
Ans. Calculation of effective capital and maximum amount of monthly remuneration
(` in lakhs)
Paid up equity share capital 270
Paid up Preference share capital 45
Reserve excluding Revaluation reserve (337.5- 22.5) 315
Securities premium 90
Long term loans 90
Deposits repayable after one year 45
855
Less: Accumulated losses not written off (45)
Investments (405)
Effective capital for the purpose of managerial remuneration 405
Kartik Ltd. is incurring losses and no special resolution has been passed by the company for payment of
remuneration. Effective capital of the company is less than 5 crores, maximum remuneration payable
to the Managing Director should be @ `60,00,000 per annum. (Revaluation reserve and application
money pending allotment are not included while computing effective capital of Kartik Ltd.)
Join Us on Telegram http://t.me/canotes_ipcc
Q-25 On 31st March, 2021, Morya Ltd. provides the following ledger balances:
Particulars Amount (`)
Debit Credit
Equity Share Capital, fully paid shares of ` 50 each 80,00,000
Calls in arrear 15,000
Land 25,00,000
Buildings 30,00,000
Plant & Machinery 24,00,000
Furniture &Fixture 13,00,000
Securities Premium 15,00,000
General Reserve 9,41,000
Profit & Loss Account 5,80,000
Loan from Public Finance Corporation (Secured by
Hypothecation of Land) 26,30,000
Other Long Term Loans 22,50,000
Short Term Borrowings 4,60,000
Inventories: Finished goods 45,00,000
Raw materials 13,00,000
Trade Receivables 17,50,000
Advances: Short Term 3,75,000
Trade Payables 8,13,000
Provision for Taxation 3,80,000
Cash in Hand 70,000
Balances with Banks 3,44,000
Total 1,75,54,000 1,75,54,000
The following additional information was also provided in respect of the above balances:
(1) 50,000 fully paid equity shares were allotted as consideration for land.
(2) The cost of assets were:
Building ` 32,00,000
Plant and Machinery ` 30,00,000
Furniture and Fixture ` 16,50,000
(3) Trade Receivables for ` 4,86,000 due for more than 6 months.
(4) Balances with banks include ` 56,000, the Naya bank, which is not a scheduled bank.
(5) Loan from Public Finance Corporation repayable after 3 years.
(6) The balance of ` 26,30,000 in the loan account with Public Finance Corporation is inclusive of `
1,34,000 for interest accrued but not due. The loan is secured by hypothecation of land.
(7) Other long-term loans (unsecured) include:
Loan taken from Nixes Bank `  13,80,000
(Amount repayable within one year ` 4,80,000)
Loan taken from Directors `  8,50,000
(8) Bills Receivable for ` 1,60,000 maturing on 15th June, 2021 has been discounted.
(9) Short term borrowings include:
Join Us on Telegram http://t.me/canotes_ipcc