Solution: 18

Books of H LTD.
Balance Sheet as at 31-3-2021
Particulars Note No. ₹
Equity and Liabilities
1) Shareholders Fund
a) Share capital 1 13,00,000
b) Reserve and Surplus 2 54,61,900

2) Non-Current Liabilities
Long-term borrowings 3 4,00,000
3) Current Liabilities
Trade Payable 10,40,000
82,01,900
Assets
1) Non-Current Assets
a) Property, Plant and Equipment 4 40,61,000
b) Intangible Assets (Goodwill) 10,00,000

2) Current Assets
Inventories 9,50,000
Trade Receivables 19,60,000
Cash and Cash Equivalent 2,30,900
82,01,900
Statement of Profit and Loss Account

Particulars Notes ₹
I Revenue from operations 60,00,000
II Other Income --
Total Revenue 60,00,000
III Expenses:
Purchases 22,32,100
Finance Cost 5 36,000
Depreciation (10% of 6,70,000) 67,000
Other Expenses 6 34,80,000
Total Expenses 58,15,100
Profit (Loss) for the period (III – IV) 1,84,900
Notes to Accounts
1) Share Capital
Authorised Share Capital
5,000, 6% preference shares of ₹100 each 5,00,000
10,000, Equity shares of ₹100 each 10,00,000
15,00,000
Issued and subscribed and paid up capital
5,000, 6% preference shares of ₹100 each 5,00,000
8,000, Equity shares of ₹100 each 8,00,000
13,00,000

2) Reserves and Surplus

Capital Reserve 5,000
Revaluation Reserve (36,00,000 – 24,00,000) 12,00,000
General Reserve 40,00,000
Profit and Loss Balance
Opening 72,000
Profit for the period 1,84,900 2,56,900
54,61,900

3) Long-term borrowing
9% Debenture 4,00,000
4,00,000
4) Property, Plant and Equipment
Land 24,00,000
Add: Revaluation adjustment 12,00,000 36,00,000
Plant and Machinery
Opening Balance 7,70,000
Less: Disposed off 1,00,000
6,70,000
Less: Depreciation (1,72,000 – 30,000 + 67,000) 2,09,000 4,61,000
40,61,000
5) Finance Costs
Debenture Interest 36,000
36,000
6) Other Expenses
Factory Expenses 15,00,000
Administration Expenses 3,00,000
Selling Expenses 14,00,000
Goodwill w/o 2,50,000
Loss on sale of machinery 30,000
34,80,000