Question

Prepare the balance sheet of Jyoti Ltd. as at March 31, 2017 from the following information:

Building Rs. 10,00,000; Investments in the shares of Metro Tyers Rs. 3,00,000; Stores & Spares Rs. 1,00,000; Discount on issue of 10% debentures Rs. 10,000; Statement of Profit and Loss (Dr.) Rs. 90,000; 5,00,000 Equity Shares of Rs. 20 each fully paid-up; Capital Redemption Reserve Rs. 1,00,000; 10% Debentures Rs. 3,00,000; Unpaid dividends Rs. 90,000; Share options outstanding account Rs. 10,000.

Answer 1

Balance Sheet

as at March 31, 2017

Particulars	Note No.	Amount  (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	10,00,000
b. Reserves and Surplus	2	10,000
2. Non-Current Liabilities
Long-term Borrowings	3	3,00,000
3. Current Liabilities
Other Current Liabilities	4	1,00,000
Total		14,10,000
II Assets
1. Non-Current Assets
a. Fixed Assets
i. Tangible Assets	5	10,00,000
b. Non-Current Investments	6	3,00,000
2. Current Assets
a. Inventories	7	1,00,000
b. Other Current Assets	8	10,000
Total		14,10,000

Notes to Accounts

Particulars			Amount (Rs)
1.Share Capital
Equity Share Capital (50,000* shares of Rs 20 each)			10,00,000
2.Reserve and surplus
Capital Redemption Reserve		1,00,000
Less: Statement of Profit or Loss (Debit)		90,000	10,000
			10,000
3. Long-term Borrowings
10% Debentures			3,00,000
4. Other Current Liabilities
Unpaid Dividend	90,000
Share Option Outstanding	10,000		1,00,000
			1,00,000
5. Tangible Assets
Building			10,00,000
6. Non-Current Investments
Shares of Metro Tyres			3,00,000
7. Inventory
Stores and Spares			1,00,000
8. Other Current Assets
Discount on Issue of 10% Debentures			10,000

*Note: There is a misprint in the book. The number of equity shares issued must be 50,000 so that both the sides of the Balance Sheet stand equal.