Q1: On 1st April 2018, ABC Ltd. was established with an authorized capital of Rs. 25,00,000/- divided into 2,50,000 equity shares of Rs. 10/- each. Out of these, the company issued 1,00,000 equity shares of Rs. 10/- each at a premium of 10%. The amount was payable as follows:
On Application: Rs. 4/- (including premium)
On Allotment: Rs. 4/-
On Final Call: Rs. 3/-
The public applied for 90,000 equity shares and all the money was duly received. How will you show the ‘Share Capital’ in the Balance Sheet of a company? Also, prepare ‘notes to accounts’ for the same.
Ans:
Extract of Balance Sheet of ABC LTD.
As at 31st March 2019
Notes to Accounts:
Q2: French Ltd. has an opening debit balance of Rs. 5,00,000/- in Reserves and Surplus as Balance of Statement of Profit and Loss. It earned a profit of Rs. 8,00,000/- for the year ended March 31st 2019. How would you show these items in the Balance Sheet and notes to accounts?
Ans:
French Ltd.
Extract of Balance Sheet as at 31st March 2019
Notes to Accounts:
Q3: Neptune Ltd. has the following balances on 1st April 2018:
Rs.
General reserve 4,50,000
Statements of P&L 2,00,000
During the year ended 31st March 2019, it incurred a loss of Rs. 3,20,000/-. How would you show these items in the Balance Sheet and notes to accounts?
Ans:
Neptune Ltd.
Extract of Balance Sheet as at 31st March 2019
Notes to Accounts:
Q4: Name the sub-headings under which the shareholder’s funds shall be classified in a company’s balance sheet.
Ans:
Shareholder’s funds shall be classified as follows:
1. What are the key components of financial statements as per Schedule III? |
2. How does Schedule III affect the presentation of financial statements? |
3. What is the significance of the Notes to Accounts in financial statements? |
4. How do companies ensure compliance with Schedule III while preparing financial statements? |
5. What are the consequences of non-compliance with Schedule III for companies? |
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