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

Illustration 9.
From the details given below, prepare Balance Sheet of Silver Ore Co. Ltd. as at 31st March,
2019 as per Schedule III of the Companies Act, 2013:

(` in ’000) (` in ’000)
Balance in Statement of Profit and Loss (Dr.) 1,800 Trade Payables 750
10% Debentures 2,000 Calls-in-Advance 50
Proposed Dividend 200 Employees’ Earned Leave Payable on Retirement 450
Equity Share Capital (` 100 each) 5,000 Inventories (Stores and Spares) 500
Cheques and Draft on Hand 480 Security Deposits for Telephone 50
12% Preference Share Capital (` 100 each) 4,000 Brands 1,100
Prepaid Expenses 500 Computer Software under development 200
Short-term Bank Loan 450 Trade Receivables 1,200
Interest accrued on Debentures of Tata Steels 120 Plant and Machinery 1,200
Building under construction 1,150 Investment in Land and Building 2,000
20,000, 12% Debentures of Tata Steel (` 100 each) 2,000 10% Debentures of Reliance Ltd. 1,000
Premium on Redemption of Debentures 200 (1/5th Redeemable within 1 year)
Application Money Pending Allotment 400
Solution: Silver Ore Co. Ltd.
BALANCE SHEET as at 31st March, 2019 (` in ’000)
Particulars Note No. 31st March,
2019 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1 9,000
(b) Reserves and Surplus 2 (1,800)
2. Share Application Money Pending Allotment 400
3. Non-Current Liabilities
(a) Long-term Borrowings 3 2,200
(b) Long-term Provisions 4 450
4. Current Liabilities
(a) Short-term Borrowings 5 450
(b) Trade Payables 750
(c) Other Current Liabilities 6 50
Total 11,500
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
(i) Tangible Assets (Plant and Machinery) 1,200
(ii) Intangible Assets (Brands) 1,100
(iii) Capital Work-in-Progress (Building under construction) 1,150
(iv) Intangible Assets Under Development 200
(Computer Software under Development)
(b) Non-Current Investments 7 4,800
(c) Long-term Loans and Advances (Security Deposits) 50
2. Current Assets
(a) Current Investments (1/5th Debentures of Reliance Ltd.) 200
(b) Inventories (Stores and Spares) 500
(c) Trade Receivables 1,200
(d) Cash and Bank Balances (Cheques and Draft) 480
(e) Other Current Assets 8 620
Total 11,500