Key financial statement items

Sol 1
Items
1. Interest
2. Wages paid
3. Dividend on Redeemable Preference Shares (not payable at the
discretion of the issuer)
4. Salaries paid
5. Exchange differences regarded as an adjustment to borrowing costs
6. Depreciation on Building
7. Other borrowing costs
8. Depreciation on Furniture
9. Sales Promotion Expenses
10. Bad Debts
11. Staff welfare expenses
12. Purchases of Raw Materials
13. Amortisation
14. Closing inventory of Raw Materials
15. Discount allowed
16. Travelling Expenses
17. Opening Inventory of WIP
18. Purchase of Stock in trade
19. Opening Inventory of Finished Goods
20. Opening inventory of Raw Materials
21. Audit Fees
22. Rent paid
23. Advertisement
24. Equity Dividend
25. Closing inventory of WIP
26. Closing inventory of Finished Goods
27. Profit on sale of Furniture
28. Litigation settlements paid
29. Deferred tax expense
30. Current Tax expenses
31. Commission paid
32. Discount Received
33. Bad debts
34. Sundry Expenses
35. Interest Income
36. Dividend Income
37. Telephone Expenses
38. Changes in Revaluation Surplus
39. Non-operating income
40. Share of profits from Partnership Firm
41. Loss on sale of Machinery
42. Goodwill written off
Headings
Finance cost
Employee benefit expenses
Finance cost
Finance cost
Depreciation and Amortization expenses
Finance cost
Other expenses
Other expenses
Cost of raw material consumed (to be added)
Cost of raw material consumed (to be deducted)
Other expenses
Other expenses
Changes in inventories of FG, SIT and WIP
Purchase of Stock in trade
Changes in inventories of FG, SIT and WIP
Cost of raw material consumed
Other expenses
Other expenses
Other expenses
Not an item of Statement of Profit and Loss/ Not included
Changes in inventories of FG, SIT and WIP (to be deducted)
Changes in inventories of FG, SIT and WIP (to be deducted)
Exceptional items
Exceptional items (to be duducted)
Tax expenses
Tax expenses
Other expenses
Other incomes
Other expenses
Other expenses
Other incomes
Other incomes
Other expenses
Other comprehensive incomes
Other incomes
Other incomes
Exceptional items (to be duducted)
Sol 2
Name of the Company:
Statement of Profit and Loss for the year ended : 31st MARCH 2020
Particulars Note No.
I Revenue From Operations 1
II Other Income 2
III Total Income (I+II)
IV EXPENSES
Cost of raw materials consumed
Purchases of Stock-in-Trade 3
Changes in inventories of finished goods, Stock- 4

in-Trade and work-inprogress
Employee benefits expense 5
Finance costs 6
Depreciation and amortization expense
Other expenses 7
Total expenses (IV)
V Profit/(loss) before exceptional items and tax (III-

IV)
VI Exceptional Items 8
VII Profit/(loss) before tax (V+VI)
VIII Tax expense:

(1) Current tax (40% on VII)
(2) Deferred tax

IX Profit/(loss) for the period (VII-VIII)
X Other Comprehensive Income

Profit on Revaluation of Land
Loss on Revaluation of Building

Profit on Exchange differences in translating the f
XI Total Comprehensive Income for the period

(IX+X)(Comprising Profit (Loss) and Other
Comprehensive Income for the period)
XII Earnings per equity share
(1) Basic
(2) Diluted
WORKING
NOTES
NOTE
NO:
1 Revenue from operations

Sales 4580000
Less: Sales returns -15000
2 Other incomes
Discount received 4200
Misc. Incomes 9760
Prov on disc on Accounts payable (350000*0.5%) 1750
3 Purchase of stock in trade

Purchases 2785800
Add: Carriage on purchases 20300
Less: Purchase returns/ Return outwards -10000
4 Changes in inventories of FG, SIT and WIP

Opening balance of Inventories (as on 1.4.19) 145000
Less: Closing bal of Inv (Cost or NRV- whichever is l -213840
5 Employee benefit expenses

Salary 223800
Add: Outstanding salary 12200
Wages 52200
Less: Prepaid wages -2200
6 Finance cost
Interest on loan 14800
7 Other expenses
Disc. Allowed
Advertisments
Bad debts
Audit fees
Sundry expenses
Rent paid 60000
Add: Outstanding rent (60000/10* 2months) 12000
Carriage on sales
Prov for doubtful debts (500000*1%)
8 Exceptional items
Profit on sale of machinery
31.03.2020 31.03.2019
-
45,65,000
15,710
45,80,710

0
27,96,100
-68,840
2,86,000
14,800
0
1,34,730
31,62,790
14,17,920
20,000
14,37,920

5,75,168

8,62,752

1,00,000
-80,000
3,500

8,86,252

21.57
21.57
Current reporting
period
4565000
15710
2796100
-68840
236000
50000
286000
14800
3500
12500
3850
12000
13880
72000
12000
5000
134730
20000
20000
Sol 3
Statement of Profit and Loss for the year ended : 31ST MARCH 2020
Particulars Note No.
I Revenue From Operations 1

II Other Income 2
III Total Income (I+II)

IV EXPENSES
Cost of materials consumed
Purchases of Stock-in-Trade 3
Changes in inventories of finished goods, Stock-in-Trade and
work-inprogress 4
Employee benefits expense 5

Finance costs (Debenture Interest)
Depreciation and amortization expense 6
Other expenses 7
Total expenses (IV)
V Profit/(loss) before exceptional items and tax (III- IV)

VI Exceptional Items 8
VII Profit/(loss) before tax (V+VI)

Tax expense:
(1) Current tax
VIII (2) Deferred tax
IX Profit/(loss) for the period (VII-VIII)

Other Comprehensive Income
Loss on Exchange differences in translating the financial statem
X
XI Total Comprehensive Income for the period (IX+X)(Comprising P

Earnings per equity share (PAT/ No. of Eq. Shares)
(1) Basic (238300/ 50000 shares)
XII (2) Diluted (238300/ 50000 shares)
Notes to Accounts:
Note: 1: Revenue from Operations:
Sales
Less: Returns
Note: 2 : Other Income:

Discount received
Sale of old newspapers
Other Income
Note: 3 : Purchases of Stock in trade :
Purchases
Less: Returns
Note: 4: Changes in Inventory:

Opening Stock
Less: Closing Stock
Note: 5 : Employee Benefit Expenses :

Salaries 2,25,000
Less: Prepaid 2,000
Note: 6 : Depreciation and Amortisation Expenses :

Depreciation on Machinery
Goodwill written off
Note: 7 : Other Expenses :

Rent 72,000
Add: Outstanding 3,000
Telephone Expenses
Printing and Stationery 4,500
Less: Unused 500
Freight outwards
Promotion Expenses
Discount allowed
General Expenses
Note: 8 : Exceptional Items :

Profit on sale of Furniture
Loss on sale of Machinery
Loss on sale of other assets
Current Reporting Previous Reporting
Period Period
33,00,000
4,180
33,04,180

0
25,85,000
-8,000
2,23,000
30,000
4,800
1,78,280
30,13,080
2,91,100
-2,800
2,88,300

50,000

2,38,300

-20,000
-5,000

2,13,300

4.77
4.77
Current Year Previous Year
33,17,000
17,000
33,00,000

2,300
980
900
4,180
25,87,000
2,000
25,85,000

45,000
53,000
-8,000
2,23,000
2,23,000

2,800
2,000
4,800
75,000
43,900
4,000
22,980
25,500
3,000
3,900
1,78,280

3,450
-2,450
-3,800
-2,800
1. Cash deposit into Bank
Sol 4
2. Trade Receivables
3. Investments in debt instruments
4. Prepaid Expenses
5. Statutory tax liabilities
1. A perpetual bond (i.e., a bond that does not have a

Sol 5 maturity date) that pays 5% interest each year.
2. A mandatorily redeemable share with a fixed
redemption amount (i.e., a share that will be
redeemed by the entity at a future date).
3. A share that is redeemable at the option of the

holder for a fixed amount of cash.
Sol 6 Particulars
Operating Cycle (Months)
Exp. Period of payment of Trade Payables (Months)
Operating Cycle (OC)

(i) Compare
(ii) 12 months
I. When your Exp. payment is < OC & < 12 Months= CL

II. When your Exp. payment is < OC & > 12 Months= CL
III. When your Exp. payments is > OC & < 12 months= CL
IV. When your Exp.payment is > OC & > 12 Months= NCL
Sol 8 Operating Cycle and the expected period of realization of trade receivable is given below. How will you classify the
Particulars
Operating Cycle (Months)
Exp. Period of realization of Trade Receivables (Months)
Operating Cycle (OC)

(i) Compare
(ii) 12 months
I. When your Exp. realisation/ receipt is < OC & < 12 Months= CA

II. When your Exp. realisation/ receipt < OC & > 12 Months= CA
III. When your Exp. realisation/ receipt is > OC & < 12 months= CA
IV. When your Exp. realisation/ receipt is > OC & > 12 Months= NCA
It is a financial instrument and it is classified as a financial
asset since the entity has the contractual right to receive cash
from the bank. Wherein, for the bank it is a financial liability
since they are contractually obliged to pay.
It is a financial asset since the entity has the right to receive
cash.
It is a financial asset since the entity has the right to receive
cash for the investments made by them in the debt
instruments
Prepaid expenses are not classified as financial instruments
since they do not result in delivery of cash or or any other
financial instruments
Statutory tax liabilities are not classified or defined under
financial instruments.
Yes, this is a financial liability since the entity is contractually

obliged/ liable to pay 5% interest each year
Yes, this is a financial liability and the entity is obliged to pay

such fixed amounts on the redemption of shares
Yes, this is a financial liability since it is redeemable at the
option of the shareholder and the entity is contractually liable
for such redemption
1 2 3 4
9 10 10 15
10 12 14 12
CL CL NCL CL
OC Exp. PP Classificn
10 8 CL
15 13 CL
months= CL 10 11 CL
Months= NCL 15 17 NCL
zation of trade receivable is given below. How will you classify the asset?
1 2 3 4
9 17 10 10
8 15 11 15
CA CA CA NCA
C & < 12 Months= CA

& > 12 Months= CA
OC & < 12 months= CA
OC & > 12 Months= NCA
5 6 7
15 15 16
13 18 15
CL NCL CL
5 6 7
14 24 10
16 20 12
NCA CA CA
PARTICULARS
1. Land
2. Capital Advance (exceeding 12 months from the reporting period)
3. Land and Building (used for letting out)
4. Application Money paid towards securities, where security has not been allotted
on the date of Balance Sheet
5. Building
6. Bank Deposit with more than 12 months maturity
7. Security Deposit (Long term)
8. Stock in trade
9. Balances with banks to the extent held as margin money or security against
borrowings (Long Term)
10. Plant and Equipment
11. Loan to employees (Long term)
12. Licenses and franchises
13. Advance given for purchase of Land (long term)
14. Plant and Equipment (used for earning rentals)
15. Computer Software
16. Prepaid Expenses
17. Furniture and Fixtures
18. Balances with banks to the extent held as margin money or security against
borrowings (Short Term)
19. Earmarked balances with banks to pay unpaid dividend

20. Advance given for purchase of Furniture (Short term)
21. Loose Tools
22. Vehicles
23. Security Deposit (Short term)
24. Balances with banks
25. Stores and spares
26. Loan to director (short term)
27. Office Equipment
28. Investment in Partnership Firms
29. Excess Tax paid (recoverable within one year) – Current Tax Asset (net)
30. Cash in hand
31. Investments in Mutual Funds
32. Goodwill
33. Investment is subsidiaries
34. Finished goods
35. Investment in bonds (Short term)
36. Bearer Plants
37. Investment in debentures of Z Ltd
38. Raw Materials
39. Trade Marks
40. Computers
41. Cheques, drafts in hand
42. Biological Asset
CLASSIFICATION
NCA- Property, Plant & equipment (PPE)
Other non current assets
Investment property
Other financial assets

PPE
Other non- current financial assets
Other non- current assets
Inventories
Other non-current financial assets

PPE
Non-current loans (NCA)
Other intangible assets
Other non-current assets
PPE
Other current assets
PPE
Bank and bank balances other than cash & CE
Bank and bank balances other than cash & CE

Other non- current assets
Inventories
PPE
Other current assets
Cash & CE
Inventories
Current loans ( CA)
PPE
Financial investments (NCA)
Current tax assets (CA)
C & CE
Goodwill (NCA)
Inventories
Financial investments ( CA)
PPE
Financial assets (NCA)
Inventories
PPE
C & CE
Biological assets other than bearer plants
PARTICULARS CLASSIFICATION
1. Equity Share Capital Equity share capital
2. Revenue received in advance Other current liabilities
3. Long term advances Other non-current liabilities
4. Bank Overdraft Other financial liability (current)
5. Money received against share warrants Other equity
6. Securities Premium Reserve Other equity
7. Provision for employee benefits Current provisions
8. Outstanding legal claims Other current liabilities
9. Convertible Preference Shares Instruments entirely equity in nature
10. Capital Reserve Other equity
11. Debenture Non-current borrowings
12. Revaluation Surplus Other equity
13. Convertible Debenture Instruments entirely equity in nature
14. Share application money pending allotment Other equity
15. Retained Earnings Other equity
16. Public Deposits Non-current borrowings
17. Unpaid dividend Other current liabilities
18. Claims against the company not acknowledged as
debt Contingent liability
19. Contractually reimbursable expenses (Long Term) Non-current Financial liabilities

20. Current maturities of long term debts Other current liabilities
Other equity (deducted in changes in
21. Dividends equity)
22. Interest accrued Other current liabilities
Other equity (negative figure in retained
23. Debit balance in Statement of Profit and Loss earnings)
24. Debenture Redemption Reserve Other equity
25. Unpaid matured deposits and interest accrued
thereon Other current liabilities
26. Uncalled liability on shares Contingent liability
27. Legal claims outstanding (short term) Other current liabilities
28. Contractually reimbursable expenses (short Term) Other current liabilities

29. Term loans from banks Non-current borrowings
30. Capital Redemption Reserve Other equity
OB 300
Changes du 150
CB 450
Statement of changes in equity
I ESC
As at the beginning/ 1st April 20X1
Changes in Equity during the year
As at the end/ 31st March 20X2
Other Equity
STATEMENT OF CHANGES IN EQUITY
NAME OF THE COMPANY:

STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED :………………..
A. Equity Share Capital:
As at 1st April, 2019

Changes in Equity Share Capital during the year
As at 31st March, 2020
B. Other Equity:
Reserves and Surplus

Money
Received
against
Capital Securities Retained Share
Reserve Premium Earnings Warrants

Changes during the year:
Profits/ Loss for the year
Share premium on New Issue
Money received against share warrants durin
Other Comprehensive Income during the yea
Dividend paid

DEPRECIATION SCHEDULE
PPE (Straight line method)
Particulars Land Building Furniture Machinery

Gross carrying value as on 01 Apr 2019 (A)
Add: Additions during the year
Less: Deletions during the year
Gross carrying value as on 31 Mar 2020 (B)
Acc. Dep as on 01 Apr 2019 ( C)

Depreciation for the year
Less: Acc. dep on deletions during the year
Acc. Dep as on 31 Mar 2020 (D)
Carrying value as on 01 Apr 2019 (A-C)

Carrying value as on 31 Mar 2020 (B-D)
Other
Comprehe
Revaluatio nsive
n Surplus Income TOTAL

Machinery

STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31st March 2020
As at 1st April, 2019 (WN 1) 5000000

Changes in Equity Share Capital during the year (WN 2A) 1000000
As at 31st March, 2020 6000000
B. Other Equity:
Capital Securities
Reserve Premium
As at 1st April, 2019 50000 55000

Profits for the year
Share premium on New Issue (WN 2B) 500000
Money received against share warrants during the year
Other Comprehensive Income during the year
Equity Dividend paid during the year

As at 31st March, 2020 50000 555000
WN
1 ESC as at 1st April 2019
500000 ES * Rs. 10 each= 5000000
2 Changes in Equity Share Capital during the year

2A- 100000 ES* Rs. 10 each= 1000000
2B- Issued at a premium of Rs. 5 per share

Securities premium= 100000 ES * Rs. 5 each= 500000
Money
nd Surplus Received Other
against Comprehe
Retained Share Revaluatio nsive
Earnings Warrants n Surplus Income TOTAL
438900 50000 40000 35000 668900

697800 697800
500000
50000 50000
5000 5000
-70000 -70000

1066700 100000 40000 40000 1851700

As at 1st April, 2019 (1500000 ES * Rs. 1) 1500000

Changes in Equity Share Capital during the year (1000000* Rs. 1000000
As at 31st March, 2020 2500000
B. Other Equity:
Capital Securities Retained
Reserve Premium Earnings
As at 1st April, 2019 250000 355000 1538900

Profits/ Loss for the year 807800
Share premium on New Issue (1000000 ES* 0.1 each) 100000
Money received against share warrants during the year
Interim dividend paid -100000

As at 31st March, 2020 250000 455000 2246700
NOTE: The final dividend proposed by the Board of

Directors will become the liability of the entity only
when the such dividends are approved by the
Shareholders in the Annual General Meeting (A.G.M), as
per Ind AS. Hence, the proposed dividend is ignored.
Money
Received Other
against Comprehe
Share Revaluatio nsive
Warrants n Surplus Income TOTAL
500000 400000 305000 3348900

807800
100000
50000 50000
-45000 -45000
-100000

550000 400000 260000 4161700

As at 1st April, 2019 (50000 ES* 100 each) 5000000

Changes in Equity Share Capital during the year (1000 ES * 100
each) 100000
As at 31st March, 2020 5100000
B. Other Equity:
As at 1st April, 2019 10000 15000 588400

Profits for the year (WN 1) 536640

As at 31st March, 2020 10000 15000 1075040
WN
1 Calculation of Profit after tax/ PAT
Profit before interest and tax 917600
Less: Interest on Debenture (1000000* 8%) -80000
Less: Preference dividend -12000
Profit before tax 825600

Less: Tax @ 35% (825600* 35%) -288960
Profit after tax (PAT) 536640

Money
Received Other
against Comprehe
500000 50000 3000 1166400

536640
15000 15000
-50000

500000 50000 18000 1668040

As at 1st April, 2019 5000000

Changes in Equity Share Capital during the year 100000
As at 31st March, 2020 5100000
B. Instruments entirely equity

Irredeemable preference shares
As at 1st April, 2019 100000
Changes in Preference Share Capital during the year -
As at 31st March, 2020 100000
C. Other Equity:
As at 1st April, 2019 10000 15000 588400

Profits for the year (WN 1) 544440
Preference share dividend paid -12000

As at 31st March, 2020 10000 15000 1070840
Calculation of Profit after tax/ PAT

Profit before interest and tax 917600
Less: Interest on Debenture (1000000* 8%) -80000
Profit before tax 837600

Less: Tax @ 35% (837600* 35%) -293160 293160
Profit after tax (PAT) 544440

Money
Received Other
against Comprehe
500000 50000 3000 1166400

544440
15000 15000
-50000
-12000

500000 50000 18000 1663840
PPE (Straight line method)
Particulars Land Building Furniture Machinery

Gross carrying value as on 01 Apr 2019 (A) 2000000 5000000 800000 1200000
Add: Additions during the year 1000000 1000000 400000 400000
Less: Deletions during the year -500000 -2000000 -75000 -
Gross carrying value as on 31 Mar 2020 (B) 2500000 4000000 1125000 1600000
Acc. Dep as on 01 Apr 2019 ( C) - 1340000 180000 350000

Depreciation for the year - 400000 168750 320000
Less: Acc. dep on deletions during the year - -285000 -25000 -
Acc. Dep as on 31 Mar 2020 (D) - 1455000 323750 670000
Carrying value as on 01 Apr 2019 (A-C) 2000000 3660000 620000 850000

Carrying value as on 31 Mar 2020 (B-D) 2500000 2545000 801250 930000
WN
1 Depreciation calculation
a. Buildings@10%
Buildings= 4000000* 10%= 400000
b. Furniture@15%
Furniture= 1125000*15%= 168750
c. Machinery@20%
Machinery= 1600000*20%= 320000
Carrying value= Gross value- Acc. dep
PPE (Written down value method)
Particulars Land Building Furniture

Gross carrying value as on 01 Apr 2019 (A) 2000000 5000000 800000
Add: Additions during the year 1000000 1000000 400000
Less: Deletions during the year -500000 -2000000 -75000
Gross carrying value as on 31 Mar 2020 (B) 2500000 4000000 1125000
Acc. Dep as on 01 Apr 2019 ( C) - 1340000 180000

Depreciation for the year (WN 2) - 294500 145500
Less: Acc. dep on deletions during the year - -285000 -25000
Acc. Dep as on 31 Mar 2020 (D) - 1349500 300500
Carrying value as on 01 Apr 2019 (A-C) 2000000 3660000 620000

Carrying value as on 31 Mar 2020 (B-D) 2500000 2650500 824500
WN
1 Calculation of Written down value of the assets as per 31.03.2019
Building Furniture Machinery
WDV of assets/ Carrying value as at the 31.03.2019
Building=5000000-1340000 3660000
Furniture= 800000-180000 620000
Machinery= 1200000-350000 850000
Add: Additions during the year 1000000 400000 400000

Less: WDV of assets deleted during the year -1715000 -50000 -
Building= 2000000-285000
Furniture= 75000-25000
Depreciation to be calculated on: 2945000 970000 1250000
2 Depreciation for the year

a. Buildings@10%
Buildings= 2945000*10%= 294500
b. Furniture@15%
Furniture= 970000*15%= 145500
c. Machinery@20%
Machinery= 1250000*20%= 250000
Machinery
1200000
400000
-
1600000
350000
250000
-
600000
850000
1000000
Machinery
NAME OF THE COMPANY: HINDUSTAN AGRO LTD.
BALANCE SHEET AS AT : 31ST MARCH, 2020
Particulars Note No. 31.03.2020

A ASSETS:
1 NON-CURRENT ASSETS:
a) Property, Plant and Equipment 1 34,50,000

b) Capital Work-in-progress
c) Investment Property
d) Goodwill 2,00,000

e) Other Intangible Assets 2 54,800
f) Intangible Assets under development
g) Biological Assets other than bearer plants
h) Financial Assets
(i) Investments 53,000
(ii) Trade Receivables
(iii) Loans
(iv) Others (to be specified)
i) Deferred Tax Assets (net)
j) Other non-current assets

2 CURRENT ASSETS:
a) Inventories 3,64,100

b) Financial Assets
(i) Investments
(ii) Trade Receivables 3 3,95,000

(iii) Cash and Cash Equivalents 4 43,500
(iv) Bank Balances other than (iii) above
(v) Loans
(vi) Others (to be specified)
c) Current Tax Assets (Net)
d) Other Current Assets- Prepaid expenses 5 5,000

TOTAL ASSETS 45,65,400

B EQUITY AND LIABILITIES:
1 EQUITY:
a) Equity Share Capital 25,00,000
b) Instrument entirely equity in nature -
c) Other Equity 10,70,000

2 LIABILITIES:
NON-CURRENT LIABILITIES:
a) Financial Liabilities
i) Borrowings 6 6,50,000

ii) Trade Payables
iii) Other financial liabilities (other than those
specified in item (b), to be specified)
b) Provisions
c) Deferred Tax Liabilities (Net)
d) Other non-current liabilities

2B CURRENT LIABILITIES:
i) Borrowings
ii) Trade Payables 7 1,89,400

specified in item (c), to be specified) 8 15,000
b) Other Current Liabilities 9 66,000
c) Provisions (for tax) 75,000
d) Current Tax Liabilities (net)

TOTAL EQUITY AND LIABILITIES 45,65,400
Hindustan Agro. Ltd

As at 1st April, 2019 (500000 Equity Shares of Rs. 5 each) 2500000

Changes in Equity Share Capital during the year -
As at 31st March, 2020 2500000
B. Other Equity:

Capital Securities
Reserve Premium

Profit for the year

NOTES 31.3.2020 31.3.2019

1 Property, Plant & Equipment
Land 1600000
Plant & Machinery 1850000
3450000
2 Other intangible assets

Patents 10000
Trademarks 44800
54800
3 Trade Receivables
Trade Debtors 375000
Bills Receivables 20000
395000
4 Cash & Cash Equivalents

Petty Cash 10000
Cash in hand 12800
Balance with bank 20700
43500
5 Other current assets

Prepaid expenses 5000
5000
6 Non-current financial borrowings

12% Debentures 500000
Unsecured loans 150000
650000
7 Trade Payables
Trade Creditors 182200
Bills Payable 7200
189400
8 Other current financial liability

Unpaid dividend 15000
15000
9 Other Current liabilities

Outstanding expenses 66000
66000
31.03.2019

ves and Surplus

Retained
Earnings TOTAL
350000 350000

720000 720000

1070000 1070000

A ASSETS:
a) Property, Plant and Equipment 1 3,33,000

b) Capital Work-in-progress
d) Goodwill
e) Other Intangible Assets (Patents) 8,000
h) Financial Assets
(i) Investments
(iii) Loans

2 CURRENT ASSETS:
a) Inventories 60,000
b) Financial Assets
(i) Investments
(ii) Trade Receivables 2 86,830
(iii) Cash and Cash Equivalents 3 9,400
(v) Loans
d) Other Current Assets- Prepaid Insurance 600

TOTAL ASSETS 497830

1 EQUITY:
a) Equity Share Capital 1,20,000

b) Instrument entirely equity in nature
c) Other Equity 253,430

2 LIABILITIES:
i) Borrowings (Debentures) 40,000
ii) Trade Payables
specified in item (b), to be specified)
b) Provisions

i) Borrowings
ii) Trade Payables 4 51,000
specified in item (c), to be specified) 5 33,400
b) Other Current Liabilities
c) Provisions

TOTAL EQUITY AND LIABILITIES 497830
STATEMENT OF CHANGES IN EQUITY -

STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED : 31st March 2020
As at 1st April, 2019 1,20,000
Changes in Equity Share Capital during the year -

As at 31st March, 2020 1,20,000
B. Other Equity:
Capital Securities
Reserve Premium
As at 1st April, 2019 20,000 5,000

Profits for the year

Interim Dividend paid
Preference Dividend paid

As at 31st March, 2020 20,000 5,000

I Revenue From Operations 6 6,15,000

II Other Income (Discount) 1,800
III Total Income (I+II) 6,16,800

IV EXPENSES
Purchases of Stock-in-Trade 7 3,11,300

Changes in inventories of finished goods, Stock-in-Trade and
work-inprogress (Op. Inventory - Closing Inventory) -20,000
Employee benefits expense 15,800
Finance costs (Debenture Interest) 6,000
Depreciation and amortization expense 2,000
Other expenses 8 78,270
Total expenses (IV) 3,93,370
V Profit/(loss) before exceptional items and tax (III- IV) 2,23,430
VI Exceptional Items -
VII Profit/(loss) before tax (V+VI) 2,23,430

Tax expense:
(1) Current tax
VIII (2) Deferred tax
IX Profit/(loss) for the period (VII-VIII) 2,23,430

Other Comprehensive Income
Loss on Exchange differences in translating the financial
statements of a foreign operation
X
Total Comprehensive Income for the period (IX+X)
(Comprising Profit (Loss) and Other Comprehensive Income
XI for the period) 2,23,430
Earnings per equity share
(1) Basic 18.62
XII (2) Diluted 18.62
NOTES Notes to Accounts: 31.03.2020

Note: 1:
Property, Plant and Equipment:
Land 1,40,000
Building 1,80,000
Furniture 10000
Add: Furniture purchased wrongly included in Purchases 5000
15000
Less: Depreciation on Furniture 2000 13,000

3,33,000

Note: 2:
Trade Receivables
Trade Receivables 80,000
Add: Unrecorded Sales 12,000
92,000
Less: Bad Debts 600
91,400
Less: Closing Provision for doubtful debts 4,570
86,830

Note: 3:
Cash and Cash Equivalents:
Cash 9,400

9,400

Note: 4:
Trade Payables
Trade Creditors 47,000
Bills Payables 4,000

51,000

Note: 5: Other Current Financial Liabilities
Outstanding Advertisement Expenses 3,200
Debenture Interest Outstanding 6,000
Bank Overdraft 24,200
33,400

Note: 6: Revenue from Operations:
Sales 6,10,000
Add: Unrecorded Sales 12,000
6,22,000
Less: Returns 7,000
6,15,000

Note: 7 : Purchases of Stock in trade :
Purchases 3,20,000
Add: Carriage on purchases 4,300
Less: Returns -8,000
Less: Purchase of Furniture wrongly debited to Purchases
Account -5,000
3,11,300

Manufacturing Expenses 44,000
Trade Expenses 7,200
Carriage Outwards 3,500
Postage and Telegram 1,500
Stationery 800
Insurance Premium 6,000
Less: Prepaid Insurance -600 5,400
Bad debts 2,670
Advertisement Expenses 3,200
Preliminary expenses 10,000
78,270
Working Notes:
1 Closing inventory was valued at Rs. 60,000

Statement of P & L Included in Changes in inventories of SIT,
Balance Sheet CA- Inventories
You are informed that goods valued Rs. 12,000 were sold
and dispatched on 29th March, 2020, but no entry was
2 passed to this effect.
Statement of P & L Under sales: Add- Rs. 12000 as Unrecorde

Balance Sheet Under Trade receivables: Add: Rs. 12000 a
Insurance Premium includes Rs. 1,200 paid on 1st October,

2019 to run for one year from October 1, 2019 to September
3 30, 2020.
FY- 1st April, 2019 to 31st March 2020
Statement of P & L From Insurance Premium- Less: Prepaid in
Balance Sheet Under Other CA- Prepaid Insurance of Rs.
Create provision for doubtful debts at 5% on Trade

Receivables after writing off Rs. 600 as bad debts during the
4 year.
Statement of P & L Under Other Expenses- Bad debts of Rs. 26
Balance Sheet Trade Receivables of Rs. 86830
Balance
sheet Trade Receivables 80000
Add: Unrecorded Sales 12000
92000
Less: Bad debts written off -600
91400
Less: Provision for doubtful debts (5% on Trade receivables
after giving for bad debts) [91400*5%] -4570
Trade Receivables 86830
P&L Bad debts 600

Add: Prov for Doubtful debts (Clos Bal/ New adj) 4570
5170
Less: Prov for doubtful debts (OB/ given in Trial balance) -2500
Bad debt expense for the year 2670
A bill of Rs. 3,200 for advertisement in newspaper remained

5 unpaid at the end of the year.
Statement of P & L Under Other Expenses- Advertisment expe
Balance Sheet In CL- Under Current financial liabilities- O
Purchases include furniture costing Rs. 5,000 purchased

6 during the year.
Statement of P & L From Purchases- Less: Purchase of furnitu
Balance Sheet To Furniture under PPE- Add: Furniture w
7 Provide Rs. 2,000 for Depreciation on furniture.

Statement of P & L Under Dep & Amortisation exp- include R
Balance Sheet From Furniture under PPE- Less: Dep on F
8 Directors proposed a final dividend of Rs. 5,000.

Note: The final dividend of Rs. 5000 proposed by the directors will become a liability to the entity only w
31.03.2016

rplus
Retained
Earnings TOTAL
15,000 40,000

2,23,430 223430

-10,000 -10000

228,430 253,430
31.03.2019

31.03.2019

ges in inventories of SIT, WIP & FG
- Rs. 12000 as Unrecorded sales

ivables: Add: Rs. 12000 as unrecorded sales
Premium- Less: Prepaid insurance paid (April 2020 to Sep 2020) 1200*6/12
Prepaid Insurance of Rs. 600
enses- Bad debts of Rs. 2670 will be mentioned
s of Rs. 86830
enses- Advertisment expenses will appear as Rs. 3200
rrent financial liabilities- O/s Advertisment exp- Rs. 3200
Less: Purchase of furniture wrongly debited to purchases a/c

er PPE- Add: Furniture wrongly included in Purchases- Rs. 5000
mortisation exp- include Rs. 2000 as Dep on Furniture

nder PPE- Less: Dep on Furniture= Rs. 2000
ability to the entity only when the Shareholders approve such dividends in the AGM as per Ind AS. Hence, the proposed dividend
the proposed dividend has to be ignored
Particulars Note No. 31.03.2020 31.03.2019

A ASSETS:
a) Property, Plant and Equipment 1 74,500
b) Capital Work-in-progress 130000
d) Goodwill
e) Other Intangible Assets
h) Financial Assets
(i) Investments
(iii) Loans

2 CURRENT ASSETS:
a) Inventories (WN 1) 46,000
b) Financial Assets
(i) Investments
(ii) Trade Receivables 2 84,718
(iii) Cash and Cash Equivalents 3 109000
(v) Loans
d) Other Current Assets- Prepaid Insurance
(3600*9/12) 2,700

TOTAL ASSETS 446,918

1 EQUITY:
a) Equity Share Capital 200000
b) Instrument entirely equity in nature
c) Other Equity 92418

2 LIABILITIES:
i) Borrowings
ii) Trade Payables
iii) Other financial liabilities (other than
those specified in item (b), to be specified)
(Redeemable Pref. Shares) 100000
b) Provisions

i) Borrowings
ii) Trade Payables 4 47,300
iii) Other financial liabilities (other than
those specified in item (c), to be specified) 5 7,200
b) Other Current Liabilities
c) Provisions

TOTAL EQUITY AND LIABILITIES 446918
PART II
Statement of Changes in equity
A. Equity Share Capital
Particulars Amt (Rs)

Equity Share Capital as at 01 April 2019 200000
Changes in Equity shares during the year -
Equity Share Capital as at 31 March 2020 200000
B. Other Equity
As at 1st April, 2019 - - 53000

Profits/ Loss for the year 64418
Dividend paid -25000

As at 31st March, 2020 92418

Particulars Note No. 31.03.2020 31.03.2019
I Revenue From Operations 7 4,74,300

II Other Income 8 7,600
III Total Income (I+II) 4,81,900

IV EXPENSES
Purchases of Stock-in-Trade 9 3,20,000

Changes in inventories of finished goods, Stock-in-
Trade and work-inprogress (Op. Inventory - Closing
Inventory)[62000-46000] 16,000
Employee benefits expense (Salaries) 25,000
Finance costs (Preference Dividend) 5,000
Depreciation and amortization expense (15000+1500) 16,500
Other expenses 10 34,982
Total expenses (IV) 4,17,482

V Profit/(loss) before exceptional items and tax (III- IV) 64,418
VI Exceptional Items -
VII Profit/(loss) before tax (V+VI) 64,418
Tax expense:
(1) Current tax -

VIII (2) Deferred tax 0
IX Profit/(loss) for the period (VII-VIII) 64,418
Other Comprehensive Income 0

X
Total Comprehensive Income for the period (IX+X)
(Comprising Profit (Loss) and Other Comprehensive
XI Income for the period) 64,418
Earnings per equity share (PAT/ No. of ES)
XII
(1) Basic (64418/ 2000 Eq. Shares) 32.21
XII (2) Diluted (64418/ 2000 Eq. Shares) 32.21
NOTES Notes to Accounts: 31.03.2020 31.03.2019

Note: 1:
Property, Plant and Equipment:
Furniture 10000
Less: Depreciation 1500 8,500
Machinery 6,000
Vehicles 75000
Less: Depreciation 15000 60,000
74,500
Note: 2:
Trade Receivables
Bills Receivables 12,100

Trade Debtors (WN 5) 72,618
84,718
Note: 3:
Cash and Cash Equivalents:
Cash 74,800
Bank 32,800
Add: Interest credited by Bank (WN 7) 1,400 34,200
1,09,000
Note: 4:
Trade Payables
Trade Creditors 48000
Less: Set off against Debtors (WN 4) 5000 43,000
Bills Payables 4,300
47,300
Note: 5: Other Current Financial Liabilities

Salaries Outstanding 5,000
Rent Outstanding (WN 6) 2,000
Outstanding Repair Charges (WN 3) 200
7,200
Note: 7: Revenue from Operations: 31.03.2020 31.03.2019
Sales 4,78,000
Less: Returns 3,700
4,74,300
Note: 8: Other Incomes:

Discount 3,800
Bank Interest Received (34200-32800) (WN 7) 1,400
Commission 2,400
7,600
Note: 9: Purchases of Stock in trade :
Purchases 3,15,000
Add: Carriage on Purchases 7,500
Less: Returns 2,500
3,20,000

Discount Allowed 2,600
Carriage on Sales 1,200
Rent 10,000
Add: Outstanding for 2 months (WN 6) 2,000 12,000
Repairs 2,300
Add: Outstanding (WN 3) 200 2,500
Insurance Premium 3,600

Less: Prepaid Insurance (3600/12*9) 2,700 900
Vehicle Expenses 6,000
Bad debts (WN 5) 6,782

Preliminary expenses 3,000
34,982
WORKING NOTES
1 Inventory as at 31st March, 2020 was valued at Rs. 46,000.
Statement of P & L Under Changes in Inventories of SIT, WIP & FG-

Balance Sheet Under CA- Inventories- Rs. 46000
2 Depreciate Furniture at 15% and Vehicles at 20% p.a
Statement of P & L Under Depreciation & Amortization expenses- Re

Balance Sheet Under PPE- under respective asset- you'll deduct t
Calculation for Dep

Dep on Furniture= 10000* 15%= 1500
Dep on Vehicle= 75000* 20%= 15000
3 A sum of Rs. 200 is due for repairs.
Statement of P & L Under Other expenses- Add: 200 Rs which is outs

Balance Sheet Under Other Current Financial liabilities- Record
4 Debtors include Rs. 5,000 due from a customer to whom Rs. 12,000 is payable.
Balance Sheet
A. Under Trade Debtors- Set off a sum of Rs. 5000 against Creditors
B. Under Trade Creditors- Set off a sum of Rs. 5000 against Debtors
Write off Rs. 2,000 as further bad debts and create a

provision for doubtful debts at 5% on Trade debtors.
5 Also provide 2% for discount on Debtors.
Statement of P & L Under Other Expenses- Bad debts= Rs. 6782

Balance Sheet Under CA- Trade receivables- Drs of Rs. 72618 w
Balance Sheet
Trade Debtors 85000
Less: Set off against Crs -5000
80000
Less: Further Bad debts -2000
78000
Less: Provision on DD (78000* 5%) -3900
74100
Less: Provision on Disc on Drs (74100* 2%) -1482
Final Drs 72618
P&L
Bad debts 2400
Add: Further Bad debts 2000
4400
Add: Prov on DD (New- adj) 3900
Less: Prov on DD (Old- In TB) -3000
5300
Add: Prov on Disc on Drs (New- adj) 1482
Less: Prov on Disc on Drs (Old- In TB)- if any -
Bad debts expenses 6782
6 Rent is paid at the rate of Rs. 1,000 per month.
Statement of P & L Outstanding Rent of Rs. 2000

Balance Sheet Under Other Current Financial Liabilities- O/s ren
Balance with Bank as at 31st March, 2020 as

ascertained from the Pass Book is Rs. 34,200, the
7 difference representing interest allowed by bank.
Statement of P & L Under Other Incomes- Interest allowed by Bank- R

Balance Sheet Under C & CE- Bank- Add: Amount credited by b
TOTAL
53000

64418
-25000

92418
ntories of SIT, WIP & FG- Deduct: Rs. 46000
- Rs. 46000
Amortization expenses- Record the dep on furniture- 1500; Dep on Vehicle- 15000
ective asset- you'll deduct the amounts
Add: 200 Rs which is outstanding

nancial liabilities- Record O/s Repairs charges of Rs. 200
Bad debts= Rs. 6782

vables- Drs of Rs. 72618 will be recorded
nancial Liabilities- O/s rent as Rs. 2000
Interest allowed by Bank- Rs 1400 (34200-32800)

Add: Amount credited by bank to us- Rs. 1400

Key financial statement items

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Sol 1

Changes in inventories of finished goods, Stock- 4

Total expenses (IV)

V Profit/(loss) before exceptional items and tax (III-

VIII Tax expense:

(2) Deferred tax

X Other Comprehensive Income

Loss on Revaluation of Building

XI Total Comprehensive Income for the period

1 Revenue from operations

3 Purchase of stock in trade

4 Changes in inventories of FG, SIT and WIP

5 Employee benefit expenses

Particulars Note No.

I Revenue From Operations 1

III Total Income (I+II)

Employee benefits expense 5

Total expenses (IV)

V Profit/(loss) before exceptional items and tax (III- IV)

VII Profit/(loss) before tax (V+VI)

IX Profit/(loss) for the period (VII-VIII)

XI Total Comprehensive Income for the period (IX+X)(Comprising P

Note: 2 : Other Income:

Note: 3 : Purchases of Stock in trade :

Note: 4: Changes in Inventory:

Note: 5 : Employee Benefit Expenses :

Less: Prepaid 2,000

Note: 6 : Depreciation and Amortisation Expenses :

Note: 7 : Other Expenses :

Note: 8 : Exceptional Items :

Current Year Previous Year

Current Year Previous Year

Current Year Previous Year

Current Year Previous Year

Current Year Previous Year

Current Year Previous Year

Current Year Previous Year

3. Investments in debt instruments

4. Prepaid Expenses

5. Statutory tax liabilities

1. A perpetual bond (i.e., a bond that does not have a

3. A share that is redeemable at the option of the

Operating Cycle (OC)

I. When your Exp. payment is < OC & < 12 Months= CL

Operating Cycle (OC)

I. When your Exp. realisation/ receipt is < OC & < 12 Months= CA

Yes, this is a financial liability since the entity is contractually

Yes, this is a financial liability and the entity is obliged to pay

C & < 12 Months= CA

19. Earmarked balances with banks to pay unpaid dividend

Other financial assets

Other non-current financial assets

Bank and bank balances other than cash & CE

Bank and bank balances other than cash & CE

19. Contractually reimbursable expenses (Long Term) Non-current Financial liabilities

28. Contractually reimbursable expenses (short Term) Other current liabilities

Statement of changes in equity

As at the end/ 31st March 20X2

STATEMENT OF CHANGES IN EQUITY

NAME OF THE COMPANY:

A. Equity Share Capital:

As at 1st April, 2019