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10.6 Double Entry Book Keeping (Section A)—ISC XII

Notes to Accounts
1. Share Capital `
Authorised Capital
50,000 Shares of ` 10 each 5,00,000
Issued Capital
40,000 Shares of ` 10 each 4,00,000
Subscribed Capital
Subscribed but not fully paid-up:
40,000 shares of ` 10 each, ` 5 called-up 2,00,000
Less: Calls-in-Arrears (3,000 × ` 2) 6,000
1,94,000
2. Cash and Bank Balances
Cash at Bank 1,94,000

Illustration 2.

Following balances have been extracted from the books of Robin Ltd. on 31st March, 2018:

Share Capital ` 10,00,000; (1,00,000 Equity Shares of ` 10 each ) Securities Premium
` 1,00,000; 12% Debentures ` 5,00,000; Creditors ` 2,50,000; Balance—Profit and Loss (Dr.)
` 50,000; Livestock ` 9,00,000; Investments in Government Bonds ` 4,00,000; Work-in-Progress
` 4,00,000; Discount on Issue of 12% Debentures ` 1,00,000; Patents ` 40,000; Unclaimed
Dividend ` 10,000; Accounts Receivable ` 20,000; and Deposits ` 50,000.
Prepare Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013.

Proposed Dividend for the year is ` 50,000. (ISC 2009, Modified)

Solution: Robin Ltd.

BALANCE SHEET as at 31st March, 2018
Particulars Note No. `

I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1 10,00,000
(b) Reserves and Surplus 2 (50,000)
2. Non-Current Liabilities
Long-term Borrowings 3 5,50,000
3. Current Liabilities
(a) Trade Payables 4 2,50,000
(b) Other Current Liabilities 5 10,000
Total 17,60,000