Illustration Prakash Limited.

Gives you,the following Trial balance as at 31st March,1998 Particulars Goodwill Land & Building Patents,Trademarks and Designs Plant & Machinery Stock in Trade(31.03.1998) Investment in 4% Govt Securities Interest accrued on investments Stores and Spares,at Cost Debtors Provision for Doubtful debts Cash in Hand Cash at Bank Advanced Income Tax TDS Preliminary Expenses Expenditure on Issue of Shares(net) Equity Share Capital (1,000 shares) 10% prefernce share capital (2,000 shares) 7% Debentures (secured by charge on Plant and Machinery) Sinking Fund Capital Reserve General Reserve Secured-Loan from bank(secured by Hypothecation of Stock) Interest accrued and Due on secured Loan from Bank Bank Overdraft (Unsecured) Interest Accrued but not due Creditors Fixed Deposits Proposed Dividends Taxation Provision Profit and Loss Account TOTAL debit (rs.) credit(rs.) 50,000.00 100,000.00 26,000.00 150,000.00 85,000.00 10,000.00 400.00 8,000.00 72,000.00 2,000.00 1,000.00 15,200.00 12,000.00 50.00 8,000.00 6,000.00 100,000.00 100,000.00 100,000.00 10,000.00 5,000.00 50,000.00 60,000.00 2,000.00 7,500.00 550.00 10,000.00 27,000.00 20,000.00 42,000.00 7,600.00 543,650.00 543,650.00

Following further information is given.: 1. The original cost of Land & Building is Rs.1,50,000 and Pl & Machinery is Rs.3,00,000. 2. Market value of Govt.securities is Rs.8,000 3. Of the debtors,Rs.12,000 are outstanding for more than 6 months. 4. Authorised share capital of the company is as under: 2000 Equity shares of Rs.100 each and 2000,10% preference shares of Rs.100 each 5. Rs.1000 from preliminary expenses and Rs.500 from expenditure on issue of shares are written off during the ye 6. Stock-in-trade is valued at cost or market price whichever is lower.

Prepare balance sheet of the company as on 31st March,1998.

are written off during the year

The Prakash Ltd. Balance Sheet as on 31st March,1998. Liabilities Share Capital Authorised 2,000 Equity Shares of Rs.100 each 2,000,10% Prefernce Shares of Rs.100 each Rs.

200,000.00 200,000.00 400,000.00

Issued and subscribed: 1,000 Equity shares of Rs.100 each Fully Paid-up 2,000,10% Prefernce Shares of Rs.100 each Rs.50 paid -up Reserves and Surplus Sinking Fund Capital Reserve General Reserve Profit and Loss Account Secured Loans 7% Debentures (secured by charge on Plant and Machinery) Secured-Loan from bank(secured by Hypothecation of Stock) Interest accrued and Due on secured Loan from Bank Unsecured Loans Fixed Deposits Bank Overdraft Current Liabilities and Provisions A. Current Liabilities: Creditors Interest accrued but not Due on Bank Loan Provision for Taxation Proposed Dividend 100,000.00 100,000.00

10,000.00 5,000.00 50,000.00 7,600.00

100,000.00 60,000.00 2,000.00 27,000.00 7,500.00

10,000.00 550.00 42,000.00 20,000.00

541,650.00

Assets Fixed Assets Goodwill Land & Building Cost Less.: Depreciation upto 31.03.98 Plant & Machinery Cost Less.: Depreciation upto 31.03.98 Patents,Trademarks and Designs Investments In 4% Govt.Securities (Market Value Rs.8,000) Current Assets ,Loan and Advances A.Current Assets Interest Accrued on Investment Stores and Spares(at cost) Stock-in-trade (at cost or market price whichever is lower.) Sundry Debtors Outstandings for more than 6 months Other Debts Less.: Doubtful Debts Cash in Hand Cash at Bank B.Loans and Advances Advance Income Tax paid Add.:TDS Miscellaneous Expenditure (to the extent not written off or adjusted) Preliminary Expenses Less.: Written Off Expenditure on Shares Less.: Written Off

Rs.

Rs. 50,000.00

150,000.00 50,000.00 300,000.00 150,000.00

100,000.00

150,000.00 26,000.00

10,000.00

400.00 8,000.00 85,000.00 60,000.00 12,000.00 72,000.00 2,000.00 1,000.00 15,200.00 12,000.00 50.00 70,000.00 16,200.00

12,050.00

9,000.00 1,000.00 6,500.00 500.00

8,000.00 6,000.00 541,650.00