Ex. 1:| The following balances are taken from the books of Gujarat Limited as on 31-3-2011:on 4 B.S. Shah Prakash, ene $$$ 8: Shah Prakash, Debit Balances T[_GreditBalances Ty \Calls in Arrears on shares. 2,400|6 % Cum. Pref. Shares of 2.25.00 Goodwill 80,000] 100 cach fully paid [Land 1,00,000}Equity Shares of % 100 3,22,009 |Building (cost € 3,00,000) | 2,42,000|cach fully paid [Plant and Machinery (cost | 3,72,800|Forfeited Shares A/c 2000 %5,00,000) Capital Reserve 1 13,009) Fumiture (cost € 20,000) 12,350}Sccurities Premium 20,009 | [Patents (cost & 30,000) 22,500|General Reserve 25.0 [Stores and spare parts 6,300|Debenture Red, Fund 44,00) 16 % Gujarat Govt. Loan 60,000}Profit & Loss A/c 38,900 (2012) 16 % Debentures 200,000) Deb. Red. Fund Investments} 39,000] (having a floating charge| | Jinvestments in shares of | 40,000} on company’s assets) ACo. Lid. (800 Shares Bank Loan (secured on land | - 75,000 of 100 each, & 50 and building) | per share paid up) Fixed Deposit 60,00 Closing Stock (at cost) 1,41,000)Bank Overdraft 25,000 Sundry Debtors 1,25,000}Loan from Subsidiary Co, 20) ICash on hand 1,500}Unclaimed Dividend 2,000 [Bank Balance 25,900]Sundry Creditors | 90,000) Bills Receivable 10,000)Bills Payable | 15,000) [Prepaid Insurance 1,000}salaries Outstanding 1,000) Deposits with Customs 4,000}Interest on loan accrued 1,000) Office but not due [Preliminary Expenses 7,400)Pfovision for Taxation 70,000 Proposed Dividend Provision for Bad debts Biven below, you are required to prepare Vertical any as on 31% : : March 2011 in the form prescribed bY ‘he Indian companies Act 2013, revised schedule 111: : any consists of $,000, 6% Cum. Preferen* Equity Shares of @ 100 each, 'ssued, 1,000 Equity Shares are issued for considera” Calls in arrears i include % 1,000 due from dit nsferred to G Rais und during the @) (4) & 4,000 is tra enture Redemption F vent Reserve and & 5,000 to DeterFinal Accounts of Limited Company 5 (5) Investments are to be shown at cost. (6) Closing stock includes Raw materials = 32,000; Work-in-progress % 24,000 and Finished Goods & 85,000. : (7) Sundry debtors are all unsecured but good, out of which debtors of % 5,000 are for more than 6 months. (8) During the year, machines of € 5,000 were added, while machines of Z 30,000 were sold. (9) The amount of gratuity payable by the company is indeterminable. (10) A claim of = 10,000 against the company has not been accepted. (11) Out of the bills discounted with the bank, bills of = 5,000 mature after 31/3/2011.Ex. 2: Following is the Trial Ralance of Indu Limited as at 31" December, 201 [Di c Particulars [Purchases & Sales ‘umniture |Goods Retumed jLand & Building 'Debtors-Creditors Bills ‘Equity Share Capital '10% Debentures (To be redeemed on 31/12/2016) ‘Stock (1/1/2010) ‘Bank Overdraft & Cash Plant and Machinery (Cost price 1,20,000) Cartage outward Cartage inward Salary & Unpaid salary Provident Fund & P. F. Contribution interest on Debentures °3,75,000] 6,15,000) 30,000) 22,500) 3,75,000) 3,30,000 1,80,000 112,500 7,500 96,000 4,500) 3,000 75,000! 3,000] 7,500) 15,000) 60,000) 45,000) 9,00,000) 150,000 15,000} 7,500 30,000~~ 16 B. S. Shah Prakashan Discount on Debentures 5,250) _ D. R. Fund & D.RF, Investments 15,000, 15.44 Bad debts & B. D. Reserve 13,500 6 yy, I Audit fee & Share Transfer Fee | 4,500 159) i | | | General Reserve = 9,004) (Unpaid wages & Director's Fee 7,500 154 Profit & Loss A/c (1/1/2010) _— 67,50) Calls in arrears & Share Forfeiture A/c 15,000; 22,500, |Wages & Interest 14,250; 7,500) Printing and stationery 6,750, _ | Investments 3,45,000| _ Additional Information: (1) Authorised share capital of the Company consists of 1 0,000 Equity Shares of 7100 each. (2) Investments are as under: z Provident Fund Investments 30,000 Investments in Shares of Baroda Ltd. 3,15,000 % 70 per share paid up) (3) Interest includes Interest on debenture redemp! tion fund investments = 3,000. (4) Stock on 31/12/2010 amounted of 3,00,000, (5) Write off ® 3,000 as bad debts and provide 8 12 (6) Depreciate Plant & Machinery by 10% on Strai (7) Depreciate Land & Building by 10% and Fumit (8) Transfer & 10,000 to D. R. Fund A/e and & 20,01 (9) The Board has recommended 10% dividend, (10) Provision for Income-tax is to be made at the rate of 50% : © On profit. Prepare Profit & Loss A/c and Vertical Balance Sheet from the above information. ,000 for Bed Debt Reserve. ight Line Method, ture by 5%, 00 to General Reserve Alc,Ex. 9;) The following balances have been extracted from the books of Swan , Industries Ltd. as on 31/3/2011: Debit Balances = [___ Credit Balances z Profit and Loss A/e 7,60,000(Share Capital 10,00,000| Furniture 1,30,000}Securities Premium 3,00,000 ‘Wages 1,19,000/8% Debentures 4,00,000 |Purchases : 15,80,000| [Bank Overdraft 1,30,000) |Debtors (including 1,30,000} 9,21,000)Creditors 1,80,500) | over 6 months) Misc. Receipts 2,500) ‘Investments 52,000) Sales (including 5% sales _|31,50,000 IInterim Dividend 50,000} tax) Electricity Expenses 13,000|Discount Received 5,500) [Plant & Machinery 5,46,000!Provident Fund 2,00,000! |Opening Stock 3,80,000|General Reserve _ 3,00,000) Interest on Debentures | 16,000)46 Land & Building 6,50,000 Salaries 3,00,000} Selling Expenses Cash Advance Payment of Income tax Contribution to P,P, Other Office Expenses ‘Addon formation () The entire authorised capital which consists of % 100 each has been issued atd subscribed, (2) Closing stock at cost 2 9,80,000, (3) Depreciation to be charged on the basis of written down value method @ 5% (4) The a%, Debentures were issued on 1-4-2010. Inter and necessary provisions are made in accounts, (5) Provision for taxation 7 4,50,000, (6) Transfer 210,000 to General Reserve, . 7) Other office &*penses include auditor’s fee% 5,000 (includi i service 1,000) and directors fee 2 40,000. es ting foe fr tation ) The directors have Proposed a final dividend of 5 it it addition wo the interim dividend already declared, Prepared ty ee Prepare final accounts for the ee year ending on 31/3/2011 ji por revived whedule III of Provisions of Companies Act 2013. (Guj. Uni ow PoEx. 17: Prepare the Final Accounts of the Vijay Co. Ltd. as per revised schedule Il of Companies Act 2013, from the following Trial Balance as on 31/03/2013 and additional information given below: - | Debit Balances [| _ Credit Balances = | Land & Building : 3,40,000jEquity share capital ' 4,00,000| Machinery 2,30,000]Share forfeiture A/c 9,000) Furniture » 64,000]Securities premium 33,000; Investments . 3,31,400]Capital reserve 1,10,000} Debtors 1,32,000}General reserve 1,80,000) |Loose Tools 24,000|7.5% Pref. share capital 2,00,000} Cash & bank balance 21,600|5% Debentures (Mortgage) 1,00.000Final Accounts of Limited Company 95 \Calls-in-Arrears (equity 20,000|Deb. Redemption fund 40,000 | shares) {Bank Loan 50,800 | Opening stock 66,600|Public Deposit 29.200) [Purchases 2,13,000}Provident fund 26,000) ‘productive wages 70,400!Sales 5,20,000] 'peb. Red. Fund Investments; — 40,000/Creditors 66,000 [Salaries | 1,14,000}Profit & Loss A/c 11,000] Rent. Rates & Taxes | 40,000)Income from investments 19,000] ‘Directors fees | . 7,000Reserve for bad debts 6,000] ‘Postage & Telegrams 13,000; ‘Provident fund contribution 5,000: Income tax 56,000) Preliminary expenses 12,000) 18,00,000} 18,00,000) Additional Information: (1) The authorized capital of the company is of & 10,00,000. (2) The directors of the company recommended 7.5% dividend on pref. share capital and 10% on equity share capital. (3) Transfer % 50,000 to general reserve. (4) Provide depreciation on machinery at 20/c. on furniture at 5% and on land and building at 4%. (5) Outstanding expenses: Productive wages ¥ 5,000, Salaries % 6,000 and Rates and Taxes % 3,000. (©) Provide 5% reserve for bad debts on debtors. (7) Prepaid rent amount to % 4,000. (8) The stock on 31/3/2013 was & 1,90,800. (North Guj. Uni., F.Y., Dec. 2013)Ex. 24;] Following is the Trial Balance of Sheweta Ltd. as on 31/3/2018: Advertisement Expenses {___ Debit Balance Credit Balance z Land & Building 36,00,000| Equity Share Capital 39,00,000 Plant & Machinery 30,00,000}10% Preference Share 12,00,000 ‘Furniture Capital ‘Cash & Bank | 1,44,000|Share Forfeiture A/c 30,000 Calls in arrears 15,000|General Reserve 3,60,000} Bad-Debts ! 45,000} Capital Reserve 1,65,000 P. F. Contribution |. 18,000|Security Premium 54,000 Office Expenses 2,40,000|Provident Fund 2,10,000 ‘Salary & Wages 1,80,000} 10% Debentures 6,00,000' Director’s Fees : 75,000|Sales 55,50,000) 'M. D. Remuneration ; 4,50,000}Creditors 9,00,000) Interest on i 30,000}Reserve for Bad Debts 24,000} Debentures Income from Investment 27. 000! 45,000}Public Deposit 1,80,000)102 ; B. S. Shah Prakashan |Audit Fees 48,000}Profit & Loss A/c 2,40,000| Investments Pre-paid Income-tax Debtors Bills Receivable Stock (1/4/2017) Purchases 1,35,00,000 After considering the following information, prepare Vertical Final Accounts as per latest format of Companies Act. (1) The closing stock on 31-3-2018 was & 2,25,000. (2) Provide depreciation on fixed assets at 10%. (3) Provide 5% reserve for bad-debts on debtors. (4) The directors of the company recommended dividend on preference share capital and 10% on equity share capital. (5) Transfer ¥ 50,000 to General Reserve. (©) Make provision for taxation at 50% of net profits. (Guj. Uni., B.B.A.-II, Dec., 2018)