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M.18 Management Accounting (Section B)—ISC XII

(b) Imara Ltd.
BALANCE SHEET as at 31st March, 2019 (` in ”000)
Particulars Note No. `
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 780
(b) Reserves and Surplus 200
2. Share Application Money Pending Allotment 20
3. Non-Current Liabilities
(a) Long-term Borrowings 600
(b) Long-term Provisions 200
4. Current Liabilities
(a) Short-term Borrowings 180
(b) Trade Payables 40
(c) Other Current Liabilities 1 20
Total 2,040
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
Tangible 1,200
(b) Non-current Investments 400
2. Current Assets
(a) Current Investments 100
(b) Inventories 40
(c) Trade Receivables 160
(d) Cash and Cash Equivalents 120
(e) Other Current Assets 2 20
Total 2,040

Notes to Accounts (` in ”000)
Particulars `
1. Others Current Liabilities
Oustanding Expenses 20
2. Other Current Assets
Prepaid Expenses 20

Note: Dividend Proposed for the Year 2018–19 is ` 20,000.

Section B
9. (a) ‘Provision for Doubtful Debts’ is not deducted from the Trade Receivables as the purpose is
to calculate the number of days for which sales are tied up in debtors and not to ascertain
the realisable value of trade receivables. If the ‘Provision for Doubtful Debts’ is deducted,
it would give an impression that a portion of Trade Receivables (to the extent of provision)
has already been collected.