Question

Xylo Ltd. was formed on 1^st April, 2017, with an authorized capital of ₹ 12,00,000 divided into Equity Shares of ₹ 10 each. It issued a prospectus inviting applications for 30,000 shares to be issued at par. The issue was fully subscribed and the amount due on the shares was received by the company.

On 1^st April, 2018, the company issued another 60,000 shares at a premium of ₹ 2 per share to be received with allotment. Applications for 55,000 shares were received which were duly allotted.

All the amounts due on these shares were received except the final call ₹ 2 per share on 1,000 shares.

On 1^st October, 2018, the company also issued 2,000 6% debentures of ₹ 100 each at par, to be redeemed at par in five equal annual instalments beginning from 1^st October, 2019. The entire issue price of these debentures was received by the company with application.

Half yearly interest on the debentures of ₹ 6,000 was paid by the company to the debenture holders on 31^st March, 2019.

You are required to show the relevant items under:

1. Equity and Liabilities in the Balance Sheet of the Company as at 31^st March, 2019 (prepared as per Schedule III of the Companies Act, 2013).
2. Notes to Accounts.

Answer 1

BALANCE SHEET OF XYLO LTD. as at 31st March, 2019
Particulars	Note No.	31.3.2019
I. EQUITY AND LIABILITIES:		₹
1. Shareholder’s Funds:
(a) Share Capital	1	8,48,000
(b) Reserve and Surplus	2	1,04,000
2. Non-Current Liabilities:
Long-term Borrowings	3	1,60,000
3. Current Liabilities:
Other Current Liabilities	4	40,000

Notes to Accounts:

	₹	₹
(1) Share Capital:
Authorized Capital
1,20,000 Equity Shares @ ₹ 10 each		12,00,000
Issued Capital:
90,000 Equity Shares @ ₹ 10 each		9,00,000
Subscribed Capital:
Subscribed and fully paid
84,000 Equity Shares @ ₹ 10 each		8,40,000
Subscribed but not fully paid
1,000 Equity Shares @ ₹ 10 each	10,000	8,000
Less: Calls-in-arrears	(2,000)
		8,48,000
(2) Reserve and Surplus:
Securities Premium		1,10,000
Balance of statement of P & L (Interest on debentures)		(6,000)
		1,04,000
(3) Long-term Borrowings:
2,000, 6% Debentures of @ ₹ 100 each		1,60,000
(4) Other Current Liabilities:
400, 6% Debenture of ₹ 100 each redeemable within 12 months		40,000