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
Reserves 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
Provision for Taxation		12,000
Interest accrued and due on 5% Debentures		8,000
Trade Receivables	20,000
TOTAL	9,80,000	9,80,000

You are required to prepare as at 31st March, 2017:

1. The Balance Sheet of Vanity Ltd. as per Schedule III of the Companies Act, 2013.
2. Notes to Accounts.

Answer 1

Balance sheet of Vanity Ltd. as at 31st March, 2017
Particulars	Note No.	31.3.2017 (₹)	31.3.2017 (₹)
I. EQUITY AND LIABILITIES:
(1) Shareholder’s Funds
(a) Share Capital	1	5,00,000
(b) Reserves and Surplus	2	1,90,000
(2) Non-Current Liabilities
Long-term Borrowings	3	1,60,000
(3) Current Liabilities
(a) Short term Borrowings	4	40,000
(b) Trade Payables	5	60,000
(c) Other Current Liabilities	6	8,000
(d) Short Term Provisions	7	12,000
TOTAL		9,70,000
II. ASSETS:
(1) Non-Current Assets
Property: Plant and Equipment		7,30,000
(2) Current Assets
(a) Inventories		50,000
(b) Trade Receivables		20,000
(c) Cash and Bank Balances		1,70,000
TOTAL		9,70,000

Notes to Accounts:

Particulars	₹	₹
1. Share Capital:
Authorized Capital
..... Equity Shares @ ₹ 100		.....
Issued Capital
..... Equity Shares @ ₹ 100		.....
Subscribed and fully paid up
5,000 Equity Shares @ ₹ 100		5,00,000
2. Reserves and Surplus:	2,00,000
Less: Underwriting commission	(10,000)	1,90,000
3. Long term borrowings:
5% Debentures (4/5th of ₹ 2,00,000)		1,60,000
4. Short-term Borrowings:
Current Maturity of Long term Debts -
5% Debentures (1/5th of ₹ 2,00,000)		40,000
5. Trade Payables:
Creditors	40,000
Bills Payable	20,000	60,000
6. Other Current Liabilities:
Interest Accrued and Due on 5% Debentures	8,000
7. Short Term Provisions:
Provision for Taxation	12,000