Question

The following are the balances of Ashok Photo Company Ltd., as at 31st March, 2024.

	₹
Securities Premium	40,000
Freehold Premises	2,50,000
Plant & Machinery	4,00,000
Furniture	15,300
Patents	4,200
Goodwill	1,20,000
Debtors	1,50,800
Share Capital: (40,000 shares ₹ 10 each)	4,00,000
15% Debentures	1,00,000
Interest Accrued and due on Debentures	7,500
Creditors	95,100
Surplus (as on 1.4.2023)	2,80,000
Provision for Doubtful Debts	5,000
Debenture Sinking Fund	80,000
Bills Payable	25,500
Closing Inventories	1,26,000
Unsecured Loans: Public Deposits	50,000
Balances and Deposit with Excise authorities	16,000
Unclaimed Dividend	2,000
Net Profit for the year	1,48,000
Cash in Hand and at Bank	36,600
9% Government Securities	25,000
Underwriting Commission	9,200
Sinking Fund Investments	80,000

Informations:

1. The authorised Capital of the Company is divided into 50,000 shares of ₹ 10 each.
2. Directors decided to transfer ₹ 38,000 to General Reserve.top
3. Directors proposed a dividend of 12% on share capital.

Prepare the Balance Sheet of the Company as at 31st March, 2024 along with ‘Notes to Accounts’.

Answer 1

Balance Sheet as at 31st March, 2024
Particulars	Note no.	₹
I. EQUITY & LIABILITIES:
(1) Shareholders’ Funds:
Share Capital	1	4,00,000
Reserves and Surplus	2	4,50,000
(2) Non-Current Liabilities:
15% Debentures	3	1,00,000
(3) Current Liabilities:
Trade Payables	4	95,100
Bills Payable	5	25,500
Interest Accrued & Due on Debentures	6	7,500
Unclaimed Dividend	7	2,000
(4) Short-term Borrowings:
Public Deposits	8	50,000
Total		10,30,100
II. ASSETS:
(1) Non-Current Assets:
(a) Property, Plant & Equipment
Freehold Premises	9	2,50,000
Plant & Machinery	10	4,00,000
Furniture	11	15,300
(b) Intangible Assets
Goodwill	12	1,20,000
Patents	13	4,200
(c) Non-Current Investments
9% Government Securities	14	25,000
Sinking Fund Investments	15	80,000
Other Non-Current Assets
Balance with Excise Authorities	16	16,000
Underwriting Commission	17	9,200
(2) Current Assets:
Inventories	18	1,26,000
Trade Receivables	19	1,45,800
Cash and Cash Equivalents	20	36,600
Total		10,30,100

Notes to Accounts:

Note 1: Share Capital:

Particulars	₹
Authorised Capital:
50,000 Equity Shares of ₹ 10 each	5,00,000
Issued, Subscribed & Paid-up Capital:
40,000 Equity Shares of ₹ 10 each fully paid	4,00,000

Note 2: Reserves & Surplus:

Particulars	₹
Securities Premium	40,000
General Reserve (Transferred)	38,000
Debenture Sinking Fund	80,000
Surplus in Statement of P&L
Opening Balance	2,80,000
Add: Net Profit	1,48,000
Less: Transfer to General Reserve	(38,000)
Less: Proposed Dividend (12% of ₹ 4,00,000)	(48,000)
Closing Balance	3,42,000
Total	4,50,000

Note 19: Trade Receivables:

Particulars	₹
Debtors	1,50,800
Less: Provision for Doubtful Debts	(5,000)
Total	1,45,800