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Question
The following balances have been extracted from the books of Vanity Ltd. as at 31st March, 2017:
Trial Balance as at 31st March, 2017
| Particulars | Debit | Credit |
| Equity Share Capital (5,000 shares of ` 100 each fully paid) | 5,00,000 | |
| Fixed Assets | 7,30,000 | |
| Reverses and Surplus | 2,00,000 | |
| Inventories | 50,000 | |
| Cash and Bank Balances | 1,70,000 | |
| Creditors | 40,000 | |
| Bills Payable | 20,000 | |
| Underwriting Commission on issue of shares | 10,000 | |
| 5% Debentures (1/5 of the Debentures to be redeemed on 31st March, 2018) | 2,00,000 | |
| Proposed Dividend | 12,000 | |
| Interest accrued and due on 5% Debentures | 8,000 | |
| Trade Receivables | 20,000 | |
| Total | 9,80,000 | 9,80,000 |
Solution
| I | Particulars | Note No. | 31.03.2017 | 31.03.2016 |
| 1 |
EQUITY AND LIABILITIES Shareholders’s Funds (a) Share Capital (b) Reserves and Surplus |
1
1
2 |
5,00,000
1,90,000 |
|
| 2 |
Non-Current Liabilities Long Term Borrowing (10% Debentures) |
3 | 1,60,000 | |
| 3 |
Current Liabilities (a) Trade Payables 4 (b) Other Current Liabilities 5 (c) Short Term Provisions |
4
5 6 |
60,000 48,000 12,000
|
|
|
TOTAL |
|
9,70,000 |
| II | ASSETS | |||
| 1 |
Non-Current Assets Fixed Assets |
7,30,000 | ||
| 2 |
Current Assets (a) Inventories (b) Trade Receivables (c) Cash and Bank Balances |
50,000 20,000 1,70,000
|
||
| TOTAL | 9,70,000 |
Notes
Notes to Accounts:
| Particulars | 31.03.2017 | 31.03.2016 |
|
1. Share Capital Authorized Capital .... Equity Shares @ 100 ....... Issued Capital (—) .... Equity Shares @ 100 (—) ....... Subscribed Capital Subscribed and fully paid up 5000 Equity Shares @ ` 100 |
(—) (—) |
... ...
5,00,000 |
|
2. Reserves and Surplus Less Under writing commission |
2,00,000 (10,000) |
1,90,000 |
| 3. Long term borrowings 5% Debentures | 1,60,000 | |
|
4. Trade Payable Creditors Bills Payable |
40,000 20,000 |
|
|
5. Other Current Liabilities Current Maturity of Long Term Debts -5% Debentures Interest Accrued and Due on 5% Debentures |
40,000 8,000
|
|
|
6. Short Term Provisions Proposed Dividend |
12,000 |
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