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Final Accounts of Companies—Application of Schedule III, Part I... 10.11

5. Other Current Liabilities
Accrued Interest on Debentures 28,000
6. Tangible Fixed Assets
(i) Building 6,00,000
(ii) Plant and Machinery 6,60,000
Less: Depreciation 66,000 5,94,000
(iii) Furniture 14,400
12,08,400
7. Intangible Fixed Assets
Goodwill 50,000
8. Non-Current Investments
Government Bonds 95,000
9. Inventories
Stock-in-Trade 10,000
10. Trade Receivables*
Debtors 1,74,000
Less: Provision for Doubtful Debts 8,700 1,65,300
11. Cash and Bank Balances
Cash in Hand 1,500
Cash at Bank 79,800
81,300
12. Short-term Loans and Advances
Advances to Staff 95,000
Contingent Liabilities
A contingent liability in respect of claim of ` 10,000 is not acknowledged as debt.
Illustration 5.
Following Ledger balances were extracted from the books of Varun Ltd. on 31st March, 2019:
Land and Building ` 2,00,000; 12% Debentures ` 2,00,000; Share Capital ` 10,00,000 (Equity
Shares of ` 10 each Fully Paid up); Plant and Machinery ` 8,00,000; Goodwill ` 2,00,000;
Investments in Shares of Raja Ltd. ` 2,00,000; General Reserve ` 2,00,000; Stock-in-Trade
` 1,00,000; Bills Receivable ` 1,00,000; Debtors ` 1,50,000; Creditors ` 1,00,000; Bank Loan
(Unsecured) ` 1,00,000; Provision for Tax ` 55,000; and Discount on Issue of 12% Debentures
` 5,000.
Proposed Dividend for the year is ` 1,00,000.
You are required to prepare Balance Sheet of the company as per Schedule III, Part I of
the Companies Act, 2013.
Solution: Varun Ltd.
BALANCE SHEET as at 31st March, 2019
Particulars Note No. `
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1 10,00,000
(b) Reserves and Surplus 2 1,95,000
2. Non-Current Liabilities
Long-term Borrowings 3 3,00,000
3. Current Liabilities
(a) Trade Payables 4 2,00,000
(b) Short-term Provisions 5 55,000
Total 17,50,000