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    Company Final

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    Company Final

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    json3084
    12 views5 pages

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    3. Company Final

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    12 views5 pages

    Company Final

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    json3084

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    © All Rights Reserved
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    of 5

    INTER CA – ADVANCED ACCOUNTING

    COMPANY FINAL ACCOUNTS

    HOMEWORK SECTION

    Answer 9
    Journal Entries
    Sr. L. Debit Credit
    No. Particulars F. ` `
    1. Profit & Loss A/c Dr. 1,50,000
    To Debenture Interest A/c 1,50,000
    (Being transfer of debenture interest to
    Profit & Loss A/c)

    2. Profit & Loss A/c Dr. 3,00,000


    To Provision for Taxation A/c 3,00,000
    (Being provision for tax made @ 30% on
    10,00,000) [11,50,000 – 1,50,000 = 10,00,000]

    3. Profit & Loss A/c Dr. 35,000


    To General Reserve A/c 35,000
    (Being creation of general reserve @ 5% of net
    profit [i.e. ` 7,00,000]) [10,00,000 – 3,00,000 ]

    Balance Sheet (Extracts) as on 31.03.2014


    Particulars Notes No. `
    EQUITY AND LIABILITIES
    (1) Shareholders funds
    (a) Share Capital 1 14,00,000
    (b) Reserve and Surplus 2 14,00,000
    (2) Non Current Liabilities
    (a) Long term borrowings 3 10,00,000

    :1:
    INTER CA – ADVANCED ACCOUNTING

    Notes to Accounts:
    (1) Share Capital
    Issued, subscribed and called up
    Equity Share Capital fully paid up 10,00,000
    1
    13 % Preference share capital
    2 4,00,000 14,00,000

    (2) Reserve and Surplus


    Securities Premium 7,00,000
    General Reserve 35,000
    Surplus (Profit / Loss)
    Profit for the period 7,00,000
    (-) Transfer to General Reserve (35,000) 6,65,000 14,00,000

    (3) Long term Borrowings


    A) Secured loan
    15% Debentures 10,00,000

    Answer 10
    In the books of Haria Chemicals Ltd.
    Balance Sheet as at 31.03.2011

    Particulars Notes No. `


    I. EQUITY AND LIABILITIES
    (1) Shareholders funds
    (a) Share Capital 1 25,00,000
    (b) Reserve and Surplus 2 7,40,000
    (2) Non Current Liabilities
    (a) Long term borrowings 3 11,45,000
    (3) Current Liabilities
    (a) Trade Payables 2,81,000
    Total 46,66,000

    :2:
    INTER CA – ADVANCED ACCOUNTING

    II. ASSETS
    (1) Non Current Assets
    (a) Property, Plant & Equipment
    (i) Tangible Assets 4 30,05,000
    (ii) Intangible Assets (Goodwill) 2,65,000
    (2) Current Assets
    (a) Inventories 8,23,000
    (b) Trade Receivable 4,40,000
    (c) Cash & Bank balances 5 53,000
    (d) Short term loans and advances 6 80,000
    Total 46,66,000

    Statement of Profit / Loss for the year ended 31.03.2011


    Particulars Notes No. ` `
    Revenue from Operations (Sales) 42,68,000
    Other income (A) 7 56,000
    43,24,000
    Expenses
    Cost of material consumed 8 23,19,000
    Change in inventory of finished goods 9 (1,43,000)
    Employee benefit expenses 10 9,00,000
    Finance cost 11 1,71,000
    Other expenses 12 4,76,000
    (B) 37,23,000
    Profit before tax (A – B) 6,01,000
    Provision for tax –
    Profit for the period 6,01,000

    Notes to Accounts:
    (1) Share Capital
    Authorized ?
    Issued subscribed & paid up
    2,50,000 Equity shares of ` 10 each fully paid 25,00,000
    25,00,000
    (2) Reserve and Surplus
    Balance as per last Balance sheet 1,39,000
    Balance in Profit / Loss A/c 6,01,000
    7,40,000

    :3:
    INTER CA – ADVANCED ACCOUNTING

    (3) Long term Borrowings


    11% Debentures 5,00,000
    Bank loans 6,45,000
    11,45,000

    (4) Tangible Assets


    Furniture 2,00,000
    Plant & Machinery 8,60,000
    (-) PFD (1,46,000) 7,14,000
    Fixtures 3,00,000
    Freehold land 15,46,000
    Tools & Equipments 2,45,000 30,05,000

    (5) Cash & Cash equivalents


    Current A/c 45,000
    Cash 8,000
    53,000

    (6) Short term loans & advances


    Loan to directors 80,000

    (7) Other income


    Rent received 46,000
    Transfer fees 10,000
    56,000
    (8) Cost of materials consumed
    Purchases 23,19,000

    (9) Changes in inventory of finished goods


    Opening inventory 6,80,000
    Closing inventory (8,23,000) (1,43,000)
    (10) Employee benefits expenses
    Wages 9,00,000

    (11) Finance cost


    Interest on Bank loan 1,16,000
    Debentures interest 55,000
    1,71,000
    :4:
    INTER CA – ADVANCED ACCOUNTING

    (12) Other expenses


    Discount 40,000
    Advertisement 20,000
    Bad debts 35,000
    Commission 1,20,000
    Rentals 25,000
    Preliminary expenses 10,000
    Consumables 84,000
    Dealers aids 21,000
    Transit insurance 30,000
    Trade expenses 37,000
    Distribution freight 54,000 4,76,000

    Note: It is assumed that Haria Chemicals Ltd. is manufacturing company. Therefore


    Purchased is treated as material consumed and Inventory is treated as
    Inventory of finished goods. Alternatively Purchase can be treated as
    Purchase of stock in trade and Inventory as Inventory of stock in trade.

    :5:

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