2. company final accounts.pdf

JJJJJ..... K. K. K. K. K. SHAH CLASSES SHAH CLASSES SHAH CLASSES SHAH CLASSES SHAH CLASSES I. P. C. C.- ACCOUNTANCY

: 6 :

Ans.1. Raul Ltd.

Balance Sheet as at 31 March, 20XX

Particulars Note No.As at 31 March, 20XX As at 31 March, 20XX

````` `````

A EQUITY AND LIABILITIES

1 Shareholders funds

(a) Share capital 2,00,000

(b) Reserves and surplus 1,57,000

(c) Money received against share warrants ----

2 Share application money pending allotment ----

3 Non-current liabilities

(a) Long-term borrowings 1,00,000

(b) Deferred tax liabilities (net) ----

(c) Other long-term liabilities ----

(d) Long-term provisions ----

4 Current liabilities

(a) Short-term borrowings ----

(b) Trade payables 25,000

(c) Other current liabilities 11,000

(d) Short-term provisions 53,000

TOTAL 5,46,000

B ASSETS

1 Non-Current Assets

(a) Fixed assets

(i) Tangible assets 4,40,000

(ii) Intangible assets ----

(iii) Capital work-in-progress ----

(iv) Intangible assets under development ----

(b) Non-current investments ----

(c) Deferred tax assets (net) ----

(d) Long-term loans and advances ----

(e) Other non-current assets ----

2 Current Assets

(a) Current investments ----

(b) Inventories 45,000

(c) Trade receivables 46,000

(d) Cash and cash equivalents 15,000

(e) Short-term loans and advances ----

(f) Other current assets ----

TOTAL 5,46,000

CHAPTER-2CHAPTER-2CHAPTER-2CHAPTER-2CHAPTER-2 COMPANY FINAL ACCOUNTS


: 7 :

Raul Ltd

Statement of Profit and Loss for the year ended 31 March, 20XX

" For the year ended "For the year ended

Particulars Note No. 31 March, 20XX " 31 March, 20XX"

````` `````

1 Revenue from operations 3,50,000

2 Other income ----

3 Total revenue 3,50,000

4 Expenses

(a) Cost of materials consumed ----

(b) Purchases of stock-in-trade 1,50,000

(c) Changes in inventories of finished goods,

work-in-progress and stock-in-trade 0

(d) Employee benefits expense ----

(e) Finance costs 10,000

(f) Depreciation and amortisation expense 38,000

(g) Other expenses 75,000

Total expenses 2,73,000

5 Profit / (Loss) before exceptional and

extraordinary items and tax (3 - 4) 77,000

6 Exceptional items 1,000

7 Profit / (Loss) before extraordinary items and tax 78,000

8 Extraordinary items ----

9 Profit / (Loss) before tax 78,000

10 Tax expense:

(a) Current tax expense 30,000

11 Profit for the period (PAT) 48,000


: 8 :

Raul Ltd.

Notes attached to and forming part of Accounts

Particulars 31st March 20XX 31st March 20XX

Note : 1 Share Capital

Authorised Capital

30,000 Equity shares of `````10/- each 3,00,000

3,00,000

Issued, Subscribed and paid-up

20,000 Equity shares of `````10/- each, fully paid up 2,00,000

(out of Above, 5000 Equity shares are issued as Bonus)

Reconciliation of Number of Shares

Shares at the beginning 15,000

Add: Issued during the year 5,000

Shares at the end 20,000

Total 2,00,000

Note : 2 Reserves and Surplus

Securities Premium 20,000

Less: Utilised for Bonus 20,000 ----

Revaluation Reserve ----

Add: Transfer during the year 70,000 70,000

General Reserve 66,000

Less: Utilised for Bonus 30,000


Surplus

Surplus as at the beginning 35,000

Add: Profit for the period 48,000

Less: Transfer to General Reserve -15,000

Less: Proposed Interim Dividend -9,000

Less: Proposed Equity Dividend (including DDT @ 15%) -23,000 36,000

Total 1,57,000

Note : 3 Long Term Borrowings

10% Debentures 1,00,000

(secured against Plant and Machinery)

Total 1,00,000


: 9 :

Note: 4 Trade payables

Creditors 25,000

Total 25,000

Note: 5 Other Current Liabilities

Interest on Debentures outstanding 5,000

TDS payable 6,000

Total 11,000

Note : 6 Short Term Provisions

Proposed Equity Dividend 23,000

Provision for Tax 30,000

Total 53,000

Note : 7 Tangible Assets

Land (1,10,000 + 70,000) 1,80,000

Plant and Machinery at Cost 3,80,000

Less: Provision for Depreciation 1,20,000 2,60,000

Total 4,40,000

Note : 8 Inventories

Closing Stock 45,000

Total 45,000

Note : 9 Trade Receivables

Debtors

Due for more than six months 6,000

Other debts 40,000 46,000

Total 46,000

Note : 10 Cash and Cash Equivalents

Cash and Bank 15,000

Total 15,000

Note : 11 Finance Cost

Interest on Debentures 5,000

Add: Outstanding 5,000 10,000

Total 10,000

Note : 12 Other Expenses

Factory Expenses 40,000

Administration Expenses 15,000

Selling Expenses 20,000

Total 75,000

Note : 13 Exceptional Items

Profit on Sale of Machinery 1,000

Total 1,000


: 10 :

Existing number of Shares 15,000

Therefore Bonus shares issued 5,000

Bonus Amount `````50,000

Journal Entry

Securities Premium A/c Dr. 20,000

General Reserve A/c Dr. 30,000

To Bonus to Equity Shareholders 50,000

Bonus to Equity Shareholders Dr. 50,000

To Equity share capital 50,000

Ans.2. Zidane Ltd.



````` `````








(a) Long-term borrowings ----







(c) Other current liabilities 1,11,000


TOTAL 9,63,000

B ASSETS

1 Non-current Assets

(a) Fixed assets






: 11 :

(b) Non-current investments 2,45,000




2 Current Assets





(e) Short-term loans and advances 16,000

(f) Other current assets 4,000

TOTAL 9,63,000

Zidane Ltd.


Particulars Note No. "For the year ended "For the year ended

31 March, 20XX" 31 March, 20XX

````` `````


2 Other income 4,000


4 Expenses


(b) Purchases of stock-in-trade ----


work-in-progress and stock-in-trade ----

(d) Employee benefits expense 20,000




Total expenses 88,000



6 Exceptional items -4,000




10 Tax expense:




: 12 :

Zidane Ltd.




Authorised Capital

1,00,000 Equity shares of `````10/- each 10,00,000

10,00,000


50,000 Equity shares of ````` 10/- each, fully paid up 5,00,000

(out of Above, 20,000 Equity shares are issued for

consideration other than cash)

Reconciliation of Number of Shares




Total 5,00,000



General Reserve 1,80,000

Surplus



Less: Proposed Equity Dividend (including DDT @ 15%) 46,000 46,000

Total 2,76,000

Note: 3 Trade Payables

Creditors 20,000

Total 20,000



Interest on Auditors Remuneration 6,000


Total 1,11,000




Total 56,000


: 13 :


Land and Building at Cost 3,00,000

Less: Provision for Depreciation (50,000 + 9,000) 59,000 2,41,000



Live Stock 20,000

Total 5,41,000

Note : 7 Non Current Investments

4% Government Securities (MV= `````1,10,000) 95,000

Investment in Equity Shares (MV = `````1,70,000) 1,50,000

Total 2,45,000



Total 50,000


Debtors


Other debts 40,000

60,000

Less: Provision for Doubtful Debts -5,000 55,000

Bills Receivable 20,000

Total 75,000


Cash at bank 30,000

Cash on Hand 2,000

Total 32,000

Note : 11 Short Term Loans and Advances

Prepaid Insurance 1,000

Advance Tax 15,000

Total 16,000

Note : 12 other Current Assets

Interest income receivable 4,000

Discount on issue of debentures 4,000

Less: Write off 4,000 ----

Total 4,000


: 14 :

Note : 13 Contingent liabilities and Commitments

Commitments

Uncalled amount of ````` 50,000 on partly paid shares

held as investments

Note : 14 other Incomes

Interest Income ----

Add: Receivable 4,000 4,000

Total 4,000

Note : 15 Employee Benefit Expenses

Salaries 20,000

Total 20,000


Interest on Debentures ----


Total 6,000


Provision for Doubtful Debts 5,000

Auditors Remuneration 5,000

General Expenses 15,000

Less: Prepaid -1,000 14,000

Directors Fees 9,000

Total 33,000


Discount on Issue of Debentures w/off 4,000

Total 4,000

Working Notes

Adj (b)

Bonus Ratio 1 : 3

Existing number of Shares 15,000

Therefore Bonus shares issued 5,000

Bonus Amount ````` 50,000

Journal Entry

Securities Premium A/c Dr. 20,000



Bonus to Equity Shareholders Dr. 50,000

To Equity Share Capital 50,000


: 15 :

Ans.3. S Ltd.



````` `````
















(d) Short-term provisions 1,35,024

TOTAL 12,76,548

B ASSETS


(a) Fixed assets


(ii) Intangible assets 2,30,000







2 Current Assets



(c) Trade receivables 1,76,000




TOTAL 12,76,548


: 16 :

S Ltd.


For the year ended For the year ended

Particulars Note No. 31 March, 20XX 31 March, 20XX

````` `````


2 Other income ----

3 Total Revenue 6,20,000

4 Expenses




work-in-progress and stock-in-trade -24,000






5 Profit / (Loss) before exceptional and extraordinary

items and tax (3 - 4) 1,28,088

6 Exceptional items 3,960

7 Profit / (Loss) before extraordinary items and tax 1,32,048


9 Profit / (Loss) before tax 1,32,048

10 Tax expense:


(b) Short IT Provision 1,000



: 17 :

S Ltd.

Notes attached to and forming Part of Accounts



Authorised Capital ?

?


Equity shares of ````` /- each, fully paid up 6,00,000

(out of Above, 20,000 Equity shares are issued for

consideration other than cash)

Total 6,00,000



General Reserve 62,000

Add: Transfer during the year 38,000 1,00,000

Surplus




Less: Proposed Equity Dividend (including DDT @ 15%) -69,000 12,024

Total 1,32,024

Note: 3 Long Term Borrowings


(Secured against assets of the company)

Total 3,00,000


Creditors 80,000

Total 80,000



Interest on Auditors Remuneration 4,000

IT Payable 3,000

Total 29,500


: 18 :




Total 1,35,024


Land and Building at Cost 4,00,000



Less: Provision for Depreciation (1,28,000 + 58,400) 1,86,400 2,33,600

office Equipmnet at Cost 30,000

Less: Provision for Depreciation (7,000 + 2,300) 9,300 20,700

Motor Car at Cost 50,000


Total 6,44,548

Note : 8 Intangible Assets

Goodwill 2,30,000

Total 2,30,000



Total 59,000


Debtors


Other Debts 1,50,000

1,76,000

Less: Provision for Doubtful Debts 1,76,000

Total 1,76,000


: 19 :


Cash at Bank and Hand 94,000

Total 94,000


Prepaid Expenses 3,000

Advance Tax 70,000

Total 73,000

Note : 14 Change in Inventories

Opening Stock 35,000

Less: Closing Stock -59,000 -24,000

Total -24,000


Salaries 64,000

Total 64,000




Total 45,000


Auditors Remuneration 4,000

Rent and Taxes 15,000

Travelling Expenses 9,000

Repairs and Renewals 2,500

Printing and Stationery 6,500

Motor Car Expenses 14,900

Total 51,900


Profit on sale of Motor Car 3,960

Total 3,960


: 20 :

Ans.4. Savita Ltd.


Particulars Note No. As at 31 March, 20XX As at 31 March, 20XX

````` `````














(b) Trade payables 6,28,400

(c) Other current liabilities ----


TOTAL 37,41,800

B ASSETS


(a) Fixed assets





(b) Non-current investments 1,00,000




2 Current Assets


(b) Inventories 8,30,000



(e) Short-term loans and advances 2,05,550


TOTAL 37,41,800


: 21 :

Savita Ltd.




Authorised Capital

25000 Equtiy Shares of `````100/- each 25,00,000

25,00,000


15000 Equity shares of `````100/- each, fully paid up 15,00,000

(out of Above, 2500 Equity shares are issued as bonus)

Reconciliation




Total 15,00,000



Debenture redemption Reserve 1,00,000

Add: Transfer during the year 1,00,000 2,00,000


Add: Utilised for Bonus 5,00,000 50,000

Surplus

Surplus as at the beginning 2,86,900

Add: Profit for the period 4,56,500

Less: Transfer to DRR 1,00,000

Less: Proposed Interim Dividend 50,000

Less: Proposed Equity Dividend (including DDT @ 15%) 1,72,500 4,20,900

Total 6,95,900



Total 5,00,000


Creditors 6,28,400

Total 6,28,400


: 22 :


Proposed Equity Dividend 1,72,500

Provision for Tax 2,45,000

Total 4,17,500




Furniture at Cost 1,75,000

Less: Provision for Depreciation 45,000 1,30,000

Total 15,90,000

Note : 8 Non- Current Investment

Investment in Equity Shares of Vanita Ltd (MV ````` 1,05,000) 1,00,000

Total 1,00,000


Closing Stock 8,30,000

Total 8,30,000


Debtors 9,88,750

Total 9,88,750


Cash at bank and hand 2,500

Current Account with Bank 25,000

Total 27,500


Prepaid Expenses 15,000

Advance Tax 1,90,550

Total 2,05,550

Note : 12 Contingent Liab & Commitments

Contingent Liabilities

Claims against the company not acknowledged as debts `````5,00,000


: 23 :

Ans.5. Wholesale Traders Ltd.



````` `````













(a) Short-term borrowings 7,300




TOTAL 13,68,800

B ASSETS


(a) Fixed assets





(b) Non-current investments 67,500




2 Current Assets




(d) Cash and cash equivalents 1,05,100



TOTAL 13,68,800


: 24 :

Wholesale Traders Ltd.




````` `````



3 Total Revenue 21,04,400

4 Expenses

(a) Cost of materials consumed



work-in-progress and stock-in-trade -47,000




(g) Other expenses 1,76,500



extraordinary items and tax (3 - 4) 4,91,670

6 Exceptional items ----

7 Profit / (Loss) before extraordinary items and tax 4,91,670


9 Profit / (Loss) before tax 4,91,670

10 Tax expense:

(a) Current tax expense 2,70,419

11 Profit for the period (PAT) 2,21,252


: 25 :

Wholesale Traders Ltd.




Authorised Capital

42,000 Equity Shares of ````` 10/- Each 4,20,000

4,20,000


42000 Equity shares of `````10/- each, fully paid up 4,20,000

Total 4,20,000


Capital Reserve ----



Add: Transfer during the year 10,000 1,10,000

Surplus


Add: Profit for the period 2,21,252


Less: Proposed Interim Dividend 16,800

Less: Proposed Equity Dividend (DDT ignored) 25,200 2,26,752

Total 3,38,752



Total 1,50,000

Note: 4 Short Term Borrowing

Bank overdraft 7,300

Total 7,300


Creditors 1,51,000

Total 1,51,000


Unclaimed Dividend 1,500

Managerail Remuneration o/s 4,630

Total 6,130


: 26 :



Provision for Tax 2,70,419

Total 2,95,619


Leasehold Properties 1,40,000


Other properties 6,60,000


Motor Car at Cost 25,000


Total 7,19,200

Note : 9 Non current Investments

Investments 67,500

Total 67,500


Closing Stock 1,67,000

Total 1,67,000


Debtors 3,10,000

Total 3,10,000


Cash at Bank 15,100

Cash in Hand 90,000

Total 1,05,100

Note : 13 Other Incomes

Rent 36,000

Investment Income 3,400

Total 39,400


: 27 :


Opening Stock 1,20,000

Less: Closing Stock -1,67,000 -47,000

Total -47,000


MD remuneration 50,000

Add: O/s 4,630 54,630

Total 54,630



Add: Outstanding ---- 10,500

Bank Interest 5,800

Total 16,300


Administration and Selling Expenses 1,76,500

Total 1,76,500

Calculation of Net Profit for Managerial remuneration

Sales 20,65,000

Add: Closing Stock 1,67,000

Less: Opening Stock 1,20,000

Less: Purchases 13,87,500

Gross Profit 7,24,500

Add: Other Incomes 39,400

Less: Finance Cost 16,300

Less: Other Expenses 1,76,500

Less: Depreciation as per books 24,800

NP for managerial remuneration 5,46,300

Remuneration entitled @ 10% 54,630


: 28 :

Ans.6. Bharat Implements Ltd.



````` `````



(a) Share capital 20,000

(b) Reserves and surplus 39,179



(a) Long-term borrowings 29,480

(b) Deferred tax liabilities (Net) ----




(a) Short-term borrowings




TOTAL 2,26,925

B ASSETS

1 Non-current assets

(a) Fixed assets

(i) Tangible assets 35,870




(b) Non-current investments 190


(d) Long-term loans and advances 580


2 Current Assets




(d) Cash and cash equivalents 320


(f) Other current assets 25

TOTAL 2,26,925


: 29 :

Bharat Implements Ltd.




````` `````




4 Expenses

(a) Cost of materials consumed



work-in-progress and stock-in-trade 18,990




(g) Other expenses 1,16,020




6 Exceptional items ----




10 Tax expense:




: 30 :

Bharat Implements Ltd.




Authorised Capital

2000 Equity Shares of ````` 10/- Each 20,000

20,000


2000 Equity shares of ````` 10/- each, fully paid up 20,000

Total 20,000


Development Reabate Reserve 2,340

Add: Transfer during the year 340 2,680

Investment Allowance Reserve 4,250

General Reserve

General Reserve as at the beginning 25,800


Less: Transfer to DRR 340

Less: Proposed Equity Dividend (DDT @ 15%) 5,750 32,249

Total 39,179


Secured Loans 13,480

Fixed Deposits 16,000

Total 29,480


Creditors 1,10,775

Total 1,10,775


Managerail Remuneration o/s 2,129

Total 2,129




Total 25,362


: 31 :


Fixed assets at Cost 63,870

Less: Provision for Depreciation 28,000

Total 35,870

Note : 8 Non current Investments

investments (Market Value = ````` 150) 190

Total 190

Note : 9 Long term Loans and Advances

Loans and advances 580

Total 580


Closing Stock

Raw Materials 30,010

WIP 25,040

Finished Goods 75,950

Total 1,31,000


Debtors

Due for more than six months 121

Other debts 58,879

59,000

Less: Provision for Doubtful Debts 60 58,940

Total 58,940


Cash at Bank 320

Total 320


Interest Accrued 25

Total 25

Note : 14 Other Incomes

Other Income 2,880

Total 2,880

Note : 15 Cost of Materials Consumed

Opening stock of Raw Material 50,020

Add : Purchases of Raw Material 4,48,400

Less: Closing Stock of Raw Material 30,010

Total 4,68,410


: 32 :


Opening Stock of FG + WIP 1,19,980

Less: Closing Stock of FG + WIP 1,00,990 18,990

Total 18,990


Salaries 29,710

MD remuneration ----

Add: O/s 2,129 2,129

Total 31,839


Interest on Fixed Loan 620

Other Interest 1,000

Total 1,620


Auditors Remuneration

Audit Fees 50

Other Matters 15 65

Other Expenses 1,15,955

Total 1,16,020

Calculation of Net Profit for Managerial remuneration

Sales 6,69,700

Add: Closing Stock 1,31,000

Less: Opening Stock 1,61,000

Less: Purchases 4,48,400


Add: Other Incomes 2,880

Less:

Salaries and Wages 29,710

Finance Cost 1 ,620

Other Expenses 1,16,020

Depreciation as per Sch. XIV 4,250

Net Profit for Managerial Remuneration 42,580

Remuneration entit led @ 5% 2,129


: 33 :

Ans.7.Calculation of Remuneration Payable to the Manager

Particulars ````` `````


Add:

Subsidies received from the Government 60,000

Revenue profit on sale of the Asset 70,000 1,30,000

Less:

Salaries, Wages and Bonus 1,92,500

General Expenses 74,000

Depreciation as per Sch XIV 81,000 3,47,500

Net Profit for Managerial Remuneration 6,82,500

Remuneration entitled @ 5% 34,125

Ans.8. Journal Entries in the Books of A Ltd.

Conversion of Partly Paid shares into fully paid

(1) Share Final Call A/c Dr. 80,000

To Equity Share Capital 80,000

(2) Bonus to Equity share holders Dr. 80,000

To Share Final Call 80,000

(3) General Reserve Dr. 80,000


Bonus issue entries

(1) Capital Reserve A/c Dr. 1,00,000

Securities Premium A/c Dr. 3,00,000

Capital Redemption Reserve Dr. 3,40,000


To Bonus to Equity Shareholders 8,00,000

(2) Bonus to Equity Shareholders Dr. 8,00,000

To Equity Share Capital 8,00,000


: 34 :

Ans.9. ET Ltd.



````` `````



(a) Share capital 25,000

(b) Reserves and surplus 19,442




(a) Long-term borrowings 36,549



(d) Long-term provisions 241


(a) Short-term borrowings 30,672




TOTAL 1,38,986

B ASSETS


(a) Fixed assets

(i) Tangible assets 44,537


(iii) Capital work-in-progress 596




(d) Long-term loans and advances 4,518


2 Current Assets




(d) Cash and cash equivalents 103


(f) Other current assets 10

TOTAL 1,38,986


: 35 :

E Ltd.


(````` in 000s)



Authorised Capital

3,50,000 Equity Shares of ````` 100/- Each 35,000

35,000


2,50,000 Equity shares of ````` 100/- each, fully paid up 25,000

Total 25,000


Development Reabate Reserve 6,271

Investment Allowance Reserve -----

Add: Transfer During the year 5,400 5,400

General reserve 6,031

Profit and Loss (PBT) 14,509

Less: Provision for Managerial Remuneration 94

Less: Provision for Tax 4,400

Less: Transfer to Investment Allowance Reserve 5,400

Less: Proposed Dividend (including DDT @ 15%) 2,875 1,740

Total 19,442


Loan from State Government (secured by charge on land) 575

other Secured Loans (secured by charge on biulding and plant and mach) 32,460

Fixed Deposits from Public 2,400

Unsecured Loans 1,114

Total 36,549

Note: 4 Long Term Provision

Provision for Gratuity and Pension 241

Total 241

Note: 4 Short Term Borrowings

Cash Credit from Banks (Hypothecation of Stocks) 30,672

Total 30,672

Note: 4 Trade payables

Acceptances 2,645

Sundry Creditors 6,162

Total 8,807


Other current liabilities 10,317

Interest accrued but not due on loans 589

Managerial Remuneration o/s 94

Total 11,000


: 36 :


Provision for Income tax 4,400

Proposed Dividend 2,875

Total 7,275


Land at Cost 2,225

Building at Cost 9,316

Less: Provision for Depreciation 2,193 7,123

Plant and Machinery at Cost 64,282

Less: Provision for Depreciation 30,328 33,954

Furniture, Fixtures and office Equipment at Cost 1,594

Less: Provision for Depreciation 568 1,026

Vehicles at cost 454

Less: Provision for Depreciation 245 209

Total 44,537

Note : 9 Long term Loans and Advances

Loans and advances 4,518

Total 4,518


Closing Stock

Raw Materials 42,014

WIP 6,116

Finished Goods 1,414

Stores and Spare 2,771

Tools, Jigs and Dies 9,187

Total 61,502

Note : 11 Trade receivables

Debtors 24,231

Total 24,231


Cash in Hand 37

Balance with Bank

On current accounts 39

On deposit accounts 27 66

Total 103


Advance Tax 3,489

Total 3,489


Preliminary Expenses 8

Interest accrued on Deposits 2

Total 10

Computation of Net profit for Managerial Remuneration

Net Profit before Tax 14,509

Add:

Depreciation as per books 12,424

Salaries and perquisities to manager 72

Less:

Depreciation as per Sch XIV 10,424

Net profit for Managerial Remuneration 16,581

Remuneration entitled @ 1% 166

Already paid 72

Provision required 94

2. company final accounts.pdf

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