Question

The following balances have been extracted from the books of Meadow Ltd. as at 31^st March, 2023.

Particulars	(₹)	Particulars	(₹)
Capital Reserve	1,20,000	Bank Overdraft	40,000
Plant and Machinery (at cost)	6,00,000	Bills Receivables	20,000
Land and Building	6,80,000	Patents	80,000
Statement of Profit & Loss (Dr.)	1,70,000	Sundry Debtors	90,000
Short-term Loans and Advances	50,000	Provision for Doubtful Debts	10,000
Cash & Bank Balances	1,60,000	Inventories	30,000
Trade Payables	90,000	Share Capital	12,20,000
Accumulated depreciation on Plant and Machinery	1,00,000	5% Debentures (1/5 of the Debentures to be redeemed on 31st March, 2024)	3,00,000

Additional Information:

• The company had issued 1,25,000 Equity shares of ₹ 10 each which were all applied for and allotted to the public. These shares were fully called up by the company.
• There were calls-in arrears @ ₹ 2 per share on 15,000 shares out of which 5,000 shares were forfeited by the company.

You are required to:

1. Show the Share Capital in the Notes to Accounts.
2. Give the amount for each of the following:
   1. Short-term borrowings
   2. Current Assets
   3. Property, Plant and Equipment and Intangible Assets
      1. Property, Plant and Equipment

Answer 1

i. Notes to accounts:

Particulars		Amount (₹)	Amount (₹)
Authorised Capital
... equity shares of ₹ 10 each
Issued Capital
1,25,000 equity shares of ₹ 10 each			12,50,000
Subscribed Capital
Subscribed and fully paid-up
1,10,000 shares of ₹ 10 each		11,00,000	11,80,000
Subscribed but not fully paid-up
10,000 shares of ₹ 10 each	1,00,000	80,000
Less: Calls in arrears @ ₹ 2 per share	(20,000)
Share Forfeiture Account:
5,000 Equity Shares @ ₹ 8 each			40,000
			12,20,000

ii. 

a. Short-term Borrowings:

Bank Overdraft	40,000
Current maturities of long term debts	60,000
	1,00,000

b. Current Assets:

Short-term Loans & Advances	50,000
Cash & Bank Balances	1,60,000
Bills Receivables	20,000
Sundry Debtors (90,000 − 10,000)	80,000
Inventories	30,000
	3,40,000

c. Property, Plant & Equipments and Tangible Assets:

(i) Property, Plant and Equipment
Plant and Machinery	6,00,000	5,00,000
Less: Accumulated Depreciation	(1,00,000)
Land and Building		6,80,000
		11,80,000