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

Answer 1

BALANCE SHEET OF VANITY LTD. as at 31st March, 2017
Liabilities	Note No.	31.3.2017 (₹)	31.3.2016 (₹)	Assets	31.3.2017 (₹)	31.3.2016 (₹)
(1) Shareholder's Funds				(1) Non-Current Assets
(a) Share Capital	1	5,00,000		Property: Plant and Equipment	7,30,000
(b) Reserves and Surplus	2	1,90,000		(2) Current Assets
(2) Non-Current Liabilities				(a) Inventories	50,000
Long-term Borrowings	3	1,60,000		(b) Trade Receivables	20,000
(3) Current Liabilities				(c) Cash and Bank Balances	1,70,000
(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		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