Question

Accountant of Glimpse India Private Ltd. resigned without completing the financial statements. Management is unsure how balances of certain heads are to be computed for the purpose of preparing the Balance Sheet as per Schedule III of Companies Act, 2013. In this regard, they have sought your assistance. Information for the purpose is as follows:

Particulars	₹	Particulars	₹
Equity Share Capital	5,00,000	Bank Overdraft	40,000
Capital Work-in-Progress	1,00,000	Public Deposits	2,50,000
Retirement benefits Payable to Employees	60,000	Trademarks	40,000
Provision for Tax	1,20,000	Advances from Customers	60,000
Investment in Shares in Another Company	50,000	Furniture and Fittings	6,00,000
Share Forfeiture Account	90,000	Livestock	1,60,000
Securities Premium	2,50,000	9% Debentures	3,00,000
Goodwill	2,50,000	Surplus, i.e., Balance in Statement of Profit & Loss	2,60,000
Building	12,00,000	Trade Payables	3,10,000
10% Preference Share Capital	20,00,000

Based on the above information, answer the following questions.

1. Current Assets to be shown in the Balance Sheet is ______.
   1. ₹ 31,00,000
   2. ₹ 44,00,000
   3. ₹ 18,40,000
   4. ₹ 11,50,000
2. Value of Non-current Assets is ______.
   1. ₹ 44,70,000
   2. ₹ 24,00,000
   3. ₹ 31,50,000
   4. None of these.
3. Total of Equity and Liabilities of the company is ______.
   1. ₹ 42,40,000
   2. ₹ 32,70,000
   3. ₹ 56,95,000
   4. ₹ 37,80,000
4. Total value of Non-current Liabilities in Equity and Liabilities part of Balance Sheet is ______.
   1. ₹ 8,50,000
   2. ₹ 5,50,000
   3. ₹ 9,00,000
   4. ₹ 6,10,000

Answer 1

1. Current Assets to be shown in the Balance Sheet is ₹ 18,40,000.
2. Value of Non-current Assets is ₹ 24,00,000.
3. Total of Equity and Liabilities of the company is ₹ 42,40,000.
4. Total value of Non-current Liabilities in Equity and Liabilities part of Balance Sheet is ₹ 6,10,000.

Explanation:

A. Current Assets = Total Assets (or Total Equity & Liabilities) − Non-Current Assets

Current Assets = ₹ 42,40,000 − ₹ 24,00,000

= ₹ 18,40,000

B. Value of Non-current Assets = Building + Furniture and Fittings + Livestock + Capital Work-in-Progress + Goodwill + Trademarks + Investment in Shares

= 12,00,000 + 6,00,000 + 1,60,000 + 1,00,000 + 2,50,000 + 40,000 + 50,000

= ₹ 24,00,000

C. Total of Equity and Liabilities of the company = Shareholders’ Funds + Non-Current Liabilities + Current Liabilities

= 31,00,000 + 6,10,000 + 5,30,000

= ₹ 42,40,000

D. Total value of Non-current Liabilities

9% Debentures = ₹ 3,00,000

Public Deposits = ₹ 2,50,000

Retirement benefits Payable = ₹ 60,000

3,00,000 + 2,50,000 + 60,000

= ₹ 6,10,000