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


                                                  Unsolved Questions


                       1.  Z Ltd. was registered on 1st April, 2019 with a nominal capital of ` 6,00,000 divided into 40,000 Equity
                         Shares of ` 10 each and 20,000; 6% Preference Shares of ` 10 each.

                                                         TRIAL BALANCE
                                                       as at 31st March, 2020

                     Particulars                                                         Dr. (`)   Cr. (`)
                     Net Profit for the year ...............................................................................................................................................  58,000
                     Equity Share Capital; 20,000 shares of ` 10 each (Fully paid) ....................................................................  2,00,000
                     Preference Share Capital; 10,000 shares of ` 10 each (Fully paid) ...........................................................  1,00,000
                     Machinery (At cost) ...................................................................................................................................................  35,000
                     Premises (At cost) ......................................................................................................................................................  60,000
                     Debtors .........................................................................................................................................................................  80,000
                     Creditors .......................................................................................................................................................................  20,000
                     Stock   ............................................................................................................................................................................  1,60,000
                     Office Furniture ..........................................................................................................................................................  6,000
                     Cash at Bank ................................................................................................................................................................  44,000
                     Provision for Depreciation on Machinery .........................................................................................................  7,000
                     Total                                                             3,85,000  3,85,000

                          It was decided:
                            (i)  to transfer ` 10,000 to General Reserve.
                            (ii)  to  pay  the  dividend  on  the  Preference  Share  Capital  in  full  and  to  propose  a  dividend  of  15%
                             on the Equity Share Capital.
                          You are required to prepare Balance Sheet of the company as per Schedule III, Part I of the Companies
                         Act, 2013.
                       2.  Following Ledger balances were extracted from the books of Varun Ltd. on 31st March, 2020:
                          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 ` 1,55,000;
                         Discount on Issue of 12% Debentures ` 5,000.
                          You are required to prepare Balance Sheet of the company as per Schedule III, Part I of the Companies
                         Act, 2013.


                                                   GUIDE TO  ANSWERS


                       1.  Dividend on Preference Shares—` 6,000 and on Equity Shares—` 30,000;
                          Total of Balance Sheet—` 3,78,000.
                       2.  Total of Balance Sheet—` 17,50,000.
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