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

Illustration 3.

Following balances have been extracted from the books of King Furnishings Ltd. as at
31st March, 2018:

` `
Equity Share Capital (fully paid 4,00,000 Accumulated Depreciation 30,000
shares of ` 100 each) Provision for Taxation 25,000
Fixed Assets (At cost) 6,60,000 Reserves and Surplus 1,00,000
Inventories 40,000 5% Debentures (secured against land) 2,00,000
Cash and Bank Balances 50,000 Unsecured Loan from Subsidiaries 50,000
Creditors 30,000 Underwriting Commission 5,000
Bills Receivable 20,000 Investments 70,000
Interest accrued and due on 5% Debentures 10,000
You are required to prepare Balance Sheet of King Furnishings Ltd. as at 31st March,
2018, as prescribed under Schedule III of the Companies Act, 2013. (ISC 2012, Modified)

Solution: BALANCE SHEET OF KING FURNISHINGS LTD.
as at 31st March, 2018
Particulars Note No. `

I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1 4,00,000
(b) Reserves and Surplus 2 95,000
2. Non-Current Liabilities
Long-term Borrowings 3 2,50,000
3. Current Liabilities
(a) Trade Payables 4 30,000
(b) Other Current Liabilities 5 10,000
(c) Short-term Provisions 6 25,000
Total 8,10,000
II. ASSETS
1. Non-Current Assets
( a) Fixed Assets:
Tangible 7 6,30,000
(b) Non-Current Investments 8 70,000
2. Current Assets
(a) Inventories 40,000
(b) Trade Receivables 9 20,000
(c) Cash and Bank Balances 50,000
Total 8,10,000