Press 'Ctrl' + '{' on the next cell for notes to accounts For Q.

Particulars Note No Amount

I. Revenue from Operations 1 11,574,000

II. Other Income 2 1,286,000
III. Total Revenue (I + II) 12,860,000

IV. Expenses
Cost of Materials Consumed 3 4,115,200
Purchase of Stock in Trade 4 514,400
Changes in Inventory (WIP + FG) 5 514,400
Employee Benefit Expense 6 1,028,800
Finance Costs 7 514,400
Depreciation and Amortisation Expense 8 514,400
Other Expenses 9 3,086,400
Total Expenses 10,288,000

Profit before Exceptional / Extraordinary Items 2,572,000

(-) Exceptional or Extraordinary Items 10 2,000
Profit Before tax 2,570,000

(-) Tax Expense

1. Current Tax 11 1,028,000
2. Deferred Tax 0

Profit / (Loss) for the period 1,542,000

Roll No 643
Press 'Ctrl' + '{' on the next cell for notes to accounts For Q.2

Name of the Company

Balance Sheet as at 31st March, 2022

Particulars Note No.

I. EQUITY & LIABILITIES

1. Shareholder's Funds
a. Share Capital 1
b. Reserves & Surplus 2

2. Non Current Liabilities

a. Long Term Borrowings 3
b. Other Long Term Liabilities 4
c. Long Term Provisions 5

3. Current Liabilities
a. Short Term Borrowings 6
b. Trade Payables 7
c. Other Currrent Liabilities 8
d. Short Term Provisions 9

Total

II. ASSETS
1. Non Current Assets
a. Intangible Assets and Property, Plant and Equipment
(I) Tangible Assets 10
(ii) Intangible Assets 11

b. Capital Work-in-Progress 12

c. Non Current Investments 13

2. Current Assets

a. Current Investments 14
b. Inventories 15
c. Trade Receivables 16
d. Cash & Cash Equivalents 17
e. Short Term Loans and Advances 18
f. Other Current Assets 19

Total
Amount

32,150,000
6,430,000

9,645,000
3,215,000
3,215,000

964,500
3,858,000
2,893,500
1,929,000

64,300,000

25,720,000
5,144,000

1,286,000

16,075,000

3,215,000
3,215,000
4,822,500
1,607,500
1,607,500
1,607,500

64,300,000
 Particulars Amount Amount

For Q.2 Note 1 :- Share Capital

Authorized Share Capital

10,000,000 shares of Rs.10 each 100,000,000
Issued, subscribed, called up & fully paid Shares

3,215,000 shares of Rs.10 each fully paid up 32,150,000

Note 2 :- Reserves and Surplus

General Reserve
Opening Balance as on 1.4.2021 771,000
(+) Profit for the current year 1,542,000 2,313,000

Capital Reserves 1,029,250

Capital Redemption Reserve 1,029,250
Securities Premium 1,029,250
Revaluation Reserve 1,029,250
6,430,000
Note 3 :- Long Term Borrowings

Inter-Corporate Deposits (Cr.)(Long term) 2,411,250

9% Debentures 2,411,250
Public Deposits 2,411,250
Loan from ICICI Bank 2,411,250
9,645,000

Note 4 :- Other Long Term Liabilities

Long term trade payable 3,215,000

3,215,000

Note 5 :- Long Term Provisions

Long Term Provisions 3,215,000

3,215,000

Note 6 :- Short Term Borrowings

Short Term Borrowings 964,500

964,500

Note 7 :- Trade Payables

Trade Payables 3,858,000
3,858,000

Note 8 :- Other Currrent Liabilities

Income Received in Advance 2,604,150

Application Money Refund and Interest Due 289,350
2,893,500

Note 9 :- Short Term Provisions

Provision for Bad and Doubtful Debts 450,500

Provision for Tax 1,028,000
Provision for Employee Benefits 270,300
Provision for Warranties 180,200
1,929,000

Note 10 :- Tangible Assets

Land and Building 12,860,000

Plant and equipment 7,716,000
Office Equipments 5,144,000
25,720,000

Note 11 :- Intangible Assets

Mining Rights 2,572,000

Licenses and Franchise 1,543,200
Computer Software 1,028,800
5,144,000

Note 12 :- Capital Work-in-Progress

Plant & Equipment - Construction in Progress 1,286,000

1,286,000

Note 13 :- Non Current Investments

Investment in Preference shares of KK Ltd 16,075,000

16,075,000

Note 14 :- Current Investments

Current Investments 3,215,000

3,215,000
 Note 15 :- Inventories

Inventories
a Finished Goods 2,594,754
b Work in Progress 288,306 2,883,060

Loose Tools 151,740

Provision for Warranties 180,200
3,215,000

Note 16 :- Trade Receivables

Secured, Considered Good 4,123,238

Doubtful for More than 6 Months 458,138
4,581,375

Sundry Debtors 4,581,375

(-) Provision for bad and doubtful debts 241,125 4,340,250
Bills Receivable 482,250
4,822,500

Note 17 :- Cash & Cash Equivalents

Balances with bank 803,750

Cash on Hand 482,250
Investment in Marketable Securities 321,500
1,607,500

Note 18 :- Short Term Loans and Advances

Short Term Loans and Advances 1,607,500

1,607,500

Note 19 :- Other Current Assets 1,607,500

Unexpired portion of Advertisement expenditure 1,286,000

Prepaid Expenses 321,500
1,607,500

For Q.1 Note 1 :- Revenue from Operations

Sales of Goods 12,860,000

(-) Sales Returns (10%) 1,286,000
11,574,000
 Note 2 :- Other Income

Dividend Income 1,286,000

1,286,000

Note 3 :- Raw Materials Consumed

Raw Materials Purchased 3,703,680

Consumption of Stores and Spare Parts 411,520
4,115,200

Note 4 :- Purchase of Stock in trade

Purchase of Finished Goods 514,400

514,400

Note 5 :- Changes in Inventories (WIP + FG)

a Finished Goods
Opening Stock 2,851,954
(-) Closing Stock 2,594,754 257,200

b WIP 514400
Opening Stock 545,506
(-) Closing Stock 288,306 257,200
514,400

Note 6 :- Employee Benefit Expenses

Salaries and Wages 514,400

Contribution to Provident and ESIC 205,760
Staff Welfare Expenses 205,760
Bonus 102,880
1,028,800

Note 7 :- Finance Costs

Interest on Borrowings from Bank 297,388

Interest on Debentures 217,013
514,400

Note 8 :- Depreciation and Amortisation Expenses

Depreciation on Machinery 514,400

514,400
Note 9 :- Other Expenses

Payment for Audit Services 308,640

Payment for Taxation Matters 308,640
Payment for Company Law Matters 308,640
Payment for Management Services 308,640
Payment for Other Services 308,640
Insurance 154,320
Repairs to Buildings 462,960
Repairs to Machinery 462,960
Power and Fuel 154,320
Rent 154,320
Compensation on Legal Settlements. 154,320
3,086,400

Note 10 :- Exceptional or Extraordinary Items

Loss due to fire 2,000

2,000

Note 11 :- Tax Expense

Deferred Tax -
Current Tax 1,028,000
1,028,000
 Balance Sheet

Liabilities Amount

Equity Share Capital of Rs. 10 each 19,290,000

8 % Preference Share Capital of Rs. 100 each, 12,860,000

Rs. 75 paid up

10 % Debentures of Rs. 100 each 9,645,000

Creditors 7,716,000

Director's Loan 8,359,000

Bills Payable 6,430,000

64,300,000

Journal Entries

Sr No. Particulars Dr.

1 Equity Share Capital A/c (10,10) Dr. 19,290,000

To Equity Share Capital A/c (5,5)
To Capital Reduction A/c
(Being paid up value of equity shares reduced
from Rs. 10 to Rs. 5 each)

2 8 % Preference Share Capital A/C (100,75) Dr. 12,860,000

To 8 % Preference Share Capital A/C (75,75)
(Being face value of preference shares reduced upto
their paid up value of Rs. 75)

3 8 % Preference Share Capital A/C Dr. 12,860,000

Capital Reduction A/c Dr. 1,543,200
To Preference Shareholder's A/c
(Being amount towards preference share capital and
50 % of arrears of dividends for the past 3 years
payable to preference shareholders)
 4 Preference Shareholder's A/c Dr. 14,403,200
To Equity Share Capital A/c
(Being equity shares issued to preference shareholders
as full and final consideration for the amount due to
them)

5 Capital Reduction A/c Dr. 192,900

To Cash/Bank A/c
(Being the interest that was due on 10% debentures
for 6 months, 60% of which has been waived of by
debenture-holders, balance amount paid to debenture -
holders)

6 10% Debentures A/c (100,100) Dr. 9,645,000

To 11% Debentures A/c (80,80)
(Being old 10% debentures surrendered by debenture -
holders for new 11% debentures of Rs. 80 each)

7 Creditors A/c Dr. 7,716,000

To Capital Reduction A/c
To Equity Share Capital A/c
To Cash/Bank A/c
(Being 40% of amount due to creditors waived off, 25%
of the amount due paid in cash and equity shares of
Rs. 5 each issued for the balance amount)

8 Director's Loan A/c Dr. 8,359,000

To Capital Reduction A/c
To Cash A/c
(Being directors sacrifice 50% of the amount due to
them and the balance paid to them as cash)

10 11% Debentures A/c Dr. 6,108,500

To Bank A/c
(Being new 11% Debentures issued for making balance
payment to Creditors and Director's Loan)

9 Land & Building A/c Dr. 2,572,000

To Capital Reduction A/c
(Being land and building revalued upwards by 20%)

10 Capital Reduction A/c Dr. 17,039,500

To Plant & Machinery A/c
To Furniture A/c
To Investmens A/c
 To Debtors A/c
To Goodwill A/c
To Profit & Loss A/c
(Being assets devalued, bad debts written off,
investments reduced to their market value, goodwill
and losses written off fully)

11 Capital Reduction A/c Dr. 707,300

To Capital Reserve A/c
(Being balance in Capital Reduction a/c transferred
to capital reservce a/c)

Balance Sheet after reconstruction

Liabilities Amount

Equity Share Capital of Rs. 5 each 26,748,800

11 % Debentures of Rs. 80 each 15,753,500

Bills Payable 6,430,000

CapitaL Reserve 707,300

49,639,600

Capital Reduction a/c

Dr
Particulars Amount

To 8% Preference Share Capital A/c 1,543,200

To Cash/ Bank A/c 192,900
(Accrued Debenture Interest)

To Plant & Machinery A/c 643,000

To Furniture A/c 482,250
To Investments A/c 643,000
To Debtors A/c 482,250
To Goodwill A/c 6,430,000
To Profit & Loss A/c 8,359,000
To Capital Reserve A/c 707,300
(balance)
19,482,900
 Assets Amount

Land & Building 12,860,000

Plant & Machinery 6,430,000

Furniture 3,215,000

Investment 6,430,000
(MV - 90% of Book Value)

Goodwill 6,430,000

Debtors 9,645,000

Bank 4,501,000

Inventory 6,430,000

Profit & Loss A/c 8,359,000

64,300,000

Cr.

9,645,000
9,645,000

12,860,000

Preference Dividend for 3 yrs

50%
14,403,200
14,403,200

192,900

9,645,000

3,086,400
2,700,600
1,929,000

4,179,500
4,179,500

6,108,500

2,572,000

643,000
482,250
643,000
 482,250 2
6,430,000
8,359,000

707,300

Assets Amount 3

Land & Building 15,432,000

Plant & Machinery 5,787,000

Furniture 2,732,750

Investment 5,787,000
4
Debtors 9,162,750

Bank 4,308,100

Inventory 6,430,000

49,639,600

-
Reduction a/c
Cr
Particulars Amount

By Equity Share Capital A/c 9,645,000

By Creditors A/c 3,086,400
By Director's Loan A/c 4,179,500
By Land & Building A/c 2,572,000

19,482,900
3,086,400
1,543,200
Working Note Amount
Bank balance
Opening Bank Balance 4,501,000
(-) Amount paid as Deb Int 192,900
(-) Amount paid to Creditors 1,929,000
(-) Amount paid towards Dorector's Loan 4,179,500
(+)Amount raised through issue of 6,108,500
11% Debentures to pay Creditors and for
Director's Loan

Closing Balance 4,308,100

Bal in cap Red a/c
Adjustment of Equity Share Capital 9,645,000
(-) Adjustment of Pref Share Capital 1,543,200
(-) Adjustment of Debenture Interest 192,900
(+) Adjustment of Creditors 3,086,400
(+) Adjustment of Director's Loan 4,179,500
(+) Revaluation of Land & Building 2,572,000

Balance 17,746,800

(-) Revaluation of Plant & Machinery 643,000

(-) Revaluation of Furniture 482,250
(-) Investments written down 643,000
(-) Bad Debts 482,250
(-)Goodwill 6,430,000
(-)Profit & loss A/c 8,359,000

Balance to be transferred to Capital Reserve 707,300

Equity Share Capital

Balance after paid up value reduced to Rs. 5 9,645,000

(+) Issued to Preference Shareholders 14,403,200
(+) Issued to Creditors 2,700,600

Closing Balance 26,748,800

11% Debentures

Opening Balance (10% - 11%) 9,645,000

(+) Issued to pay Crediors and Director's Loan 6,108,500

Closing Balance 15,753,500

 Balance Sheet

Liabilities Amount

Equity Share Capital of Rs. 100 each 19,290,000

10 % Preference Share Capital of Rs. 20 each 12,860,000

12 % Debentures of Rs. 100 each 22,505,000

Creditors 8,359,000

Provision for tax 1,286,000

64,300,000

Journal Entries

Sr No. Particulars Dr.

1 10 % Preference Share Capital A/C (20,20) Dr. 12,860,000

To 10 % Preference Share Capital A/C (50,50)
(Being preference shares consolidated into preference
shares of FV of Rs. 50 each)

2 Equity Share Capital A/c (100,100) Dr. 19,290,000

To Equity Share Capital A/c (50,50)
To Share Surrender A/c
(Being equity shares subdivided into shares of FV of Rs. 50
each, and each shareholder shall surrender 60 % of their
shareholding)

3 Share Surrender A/c Dr. 2,893,500

To 10 % Preference Share Capital A/C
(Being out of shares surrendered, 25% converted to
preference shares and issued to debenture holders in
partial settlement of their claims)

4 Share Surrender A/c Dr. 5,787,000

To Equity Share Capital A/C
 (Being out of shares surrendered, 50 % issued to creditors
in full settlement of their claims)

5 Capital Reduction A/c Dr. 2,000

Income Tax Liability A/c Dr. 1,286,000
To Bank A/C
(Being income tax liability settled with an additional
penalty of Rs. 2,000)

6 Fixed Assets A/c Dr. 3,536,500

To Capital Reduction A/c
(Being fixed assets revalued upwards by 10%)

7 Share Surrender A/c Dr. 2,893,500

To Capital Reduction A/c
(Being balance in Share Surrender A/c transferred to
Capital Reduction A/c)

8 Capital Reduction A/c Dr. 5,000

To Cash / Bank A/c
(Being reconstruction expenses paid)

9 Creditors A/c Dr. 8,359,000

10% Debentures A/c Dr. 2,893,500
To Capital Reduction A/c
(Being balance in creditors A/c and partial claim of
debenture holders settled transferred to
capital reduction a/c)

10 Capital Reduction A/c Dr. 11,091,750

To Other Current Assets A/c
To Goodwill A/c
To Profit & Loss A/c
(Being other current assets written down, goodwill and
losses written off)

11 Capital Reduction A/c Dr. 6,583,750

To Capital Reserve A/c
(Being balance in Capital Reduction a/c transferred
to capital reservce a/c)

Balance Sheet after reconstruction

Liabilities Amount

Equity Share Capital of Rs. 50 each 13,503,000

10 % Preference Share Capital of Rs. 20 each 15,753,500

12 % Debentures of Rs. 100 each 19,611,500

Capital Reserve 6,583,750

55,451,750

Capital Reduction a/c

Dr
Particulars Amount

To Bank A/c 2,000

To Bank A/c 5,000

To Other Current Assets A/c 1,446,750

To Goodwill A/c 3,215,000
To Profit & Loss A/c 6,430,000
To Capital Reserve A/c 6,583,750
(balance)

17,682,500
 Assets Amount

Fixed Assets 35,365,000

Investment 3,215,000

Other Current Assets 9,645,000

Cash and Bank balance 6,430,000

Goodwill 3,215,000

Profit & Loss A/c 6,430,000

64,300,000

Cr.

###
12,860,000

7,716,000
11,574,000 ###

2,893,500

5,787,000
 1,288,000

3,536,500

2,893,500

5,000

11,252,500

1,446,750
3,215,000
6,430,000

6,583,750

Assets Amount

Fixed Assets 38,901,500

Investment 3,215,000
 Other Current Assets 8,198,250

Cash and Bank balance 5,137,000

55,451,750

pital Reduction a/c

Cr
Particulars Amount

By Creditors A/c 8,359,000

By 10% Debentures A/c 2,893,500
By Fixed Assets A/c 3,536,500
By Share Surrender A/c 2,893,500

17,682,500
Working Note Amount
Bank balance
Opening Cash and Bank Balance 6,430,000
(-) Income Tax Liability 1,288,000
(-) Reconstruction Expenses 5,000

Closing Balance 5,137,000

Bal in cap Red a/c

Transfer from Share Surrender A/c 2,893,500
(-) Income Tax Penalty 2,000
(+) Revaluation of Fixed Assets 3,536,500
(-) Reconstruction Expenses 5,000
(+) Balance in creditors 8,359,000
(+) Preference Shares issued to Debentrue 2,893,500
holders

Balance 17,675,500

(-) Writing off Other Current Assets 1,446,750

(-) Goodwill 3,215,000
(-) Losses written off 6,430,000

Balance transferrred to capital reserve 6,583,750

Equity Share Capital

ESC after shares surrendered 7,716,000

(+) Shares issued to creditors 5,787,000

Closing Balance 13,503,000