Page 273 - ISCDEBK-12
P. 273
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.