ILLUSTRATION 6

YOU ARE REQUIRED TO PREPARE BALANCE SHEET AND STATEMENT OF PROFIT AND LOSS FROM THE FOLLOWING TRIAL BALA

SOL:
HARSHITA CHEMICALS LTD
TRIAL BALANCE AS AT 31ST MARCH, 2021

PARTICULARS AMOUNT PARTICULARS AMOUNT

INVENTORY 680000 EQUITY SHARES
FURNITURE 200000 CAPITAL (SHARES OF RS10 EACH) 2500000
DISCOUNT 40000 11%DEBENTURES 500000
LOAN TO DIRECTORS 80000 BANK LOANS 645000
ADVERTISEMENT 20000 TRADE PAYABLES 281000
BAD DEBTS 35000 SALES 4268000
COMMISSION 120000 RENT RECEIVED 46000
MATERIALS CONSUMED 2319000 TRANSFER FEES 10000
PLANT AND MACHINERY 860000 PROFIIT AND LOSS ACCOUNT 139000
RENTALS 25000 DEPRICIATION PROVISION:
CURRENT ACCOUNT 45000 MACHINERY 146000
CASH 8000
INTEREST ON BANK LOANS 116000
PRELIMINARY EXPENSES 10000
FIXTURES 300000
WAGES 900000
CONSUMABLES 84000
FREEHOLD LAND 1546000
TOOLS AND EQUIPMENT 245000
GOODWILL 265000
TRADE RECIEVABLES 440000
DEALER AIDS 21000
TRANSIT INSURANCE 30000
TRADE EXPENSES 37000
DISTRIBUTION FRIEGHT 54000
DEBENTURE INTEREST 55000
8535000 8535000

ADDITIONAL INFORMATION:CLOSING INVENTOY ON 31-3-2021 823000

E FOLLOWING TRIAL BALANCE OF HARSHITA CHEMICALS LTD. FOR THE YEAR ENDED 31ST MARCH 2021.

HITA CHEMICALS LTD.

31ST MARCH, 2021
 HARSHITA CHEMICALS LT
BALANCE SHEET AS AT 31ST MARCH,

SCHEDULE NO.
EQUITY AND LIABILITIES
(1) SHAREHOLDERS FUNDS
(A) SHARE CAPITAL 1
(B) RESERVE AND SURPLUS 2
(2) NON CURRENT LIABILITIES
(A) LONG TERM BORROWINGS 3
(3) CURRENT LIABILITIES
(A) TRADE PAYABLES
(TOTAL)
ASSETS
(1) NON CURRENT ASSETS
(A) PPE 4
(B) INTANGIBLE ASSETS (GOODWILL)
(2) CURRENT ASSETS
(A) INVENTORIES
(B) TRADE RECIEVABLES
© CASH AND BANK BALANCES 5
(D) SHORT TERM LOANS AND ADVANCES 6
(TOTAL)
ARSHITA CHEMICALS LTD.
ANCE SHEET AS AT 31ST MARCH,2021

RUPEES AS AT THE END OF 31ST MARCH 2021

2500000
740000

1145000

281000
4666000

3005000
265000

823000
440000
53000
80000
4666000
 HARSHITA CHEMICALS LIMIT
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31S

PARTICULARS SCHEDULE AMOUNT

REVENUE FROM OPERATIONS 4268000
OTHER INCOME 7 56000
(A) 4324000

EXPENSES
COST OF MATERIAL CONSUMED 2319000
CHANGE IN INVENTORY OF FINISHED GOODS 8 -143000
EMPLOYEE BENEFIT EXPENSES 9 900000
FINANCE COST 10 171000
OTHER EXPENSES 11 476000
(B) 3723000

PROFIT BEFORE TAX(A-B) 601000

PROFIT BEFORE TAX 0
PROFIT FOR THE PERIOD 601000
MICALS LIMITED
R THE YEAR ENDED 31ST MARCH, 2021
 NOTES TO ACCOUNTS

1. SHARE CAPITAL
AUTHORISED
EQUITY SHARE CAPITAL OF RS10EACH
ISSUED ABD SUBSCRIBED
EQUITY SHARE CAPITAL OF RS10EACH

2. RESERVE AND SURPLUS

BALANCE AS PER LAST BALANCE SHEET
BALANCE IN PROFIT AND LOSS ACCOUNT

3. LONG TERM BORROWINGS

11% DEBENTURES
BANK LOANS(ASSUMED LONG TERM)

4 . PPE

FREEHOLD LAND
FURNITURE
FIXTURES
PLANT AND MACHINERY
TOOLS AND EQUIPMENT
TOTAL

5. CASH AND BANK BALANCES

CASH AND CASH EQUIVALENTS
CURRENT ACCOUNT BALANCE
CASHH
OTHER BANK BALANCES

6. SHORT- TERM LOANS AND ADVANCES

LOAN TO DIRECTORS

7. OTHER INCOMES
RENT RECEIVED
TRANSFER FEES

8. CHANGE IN INVENTORY OF FINISHED GOODS, WIP AND STOCK IN TRADE

OPENING INVENTORY
CLOSING INVENTORY
9. EMPLOYEE BENEFIT EXPENSE
WAGES

10. FINANCE COST

INTEREST ON BANK LOANS
DEBENTURE INTEREST

11. OTHER EXPENSES

CONSUMABLES
PREMLIMINARY EXPENSES
BAD DEBTS
DISCOUNT
RENTALS
COMMISSION
ADVERTISEMENT
DEALERS AIDS
TRANSIT INSURANCE
TRADE EXPENSES
DISTRIBUTION FRIEGHT
O ACCOUNTS

(RS)

2500000

2500000

139000
601000
740000

500000
645000
1145000

GROSS BLOCK DEPRICIATION NET BLOCK

1546000 1546000
200000 200000
300000 300000
860000 146000 714000
245000 245000
3151000 146000 3005000

45000
8000
0
53000

80000

46000
10000
56000

680000
823000 -143000
900000

116000
55000
171000

84000
10000
35000
40000
25000
120000
20000
21000
30000
37000
54000
476000