# DK Goel Solutions for Class 12 Accountancy Vol 2 Chapter 1 Financial Statements of Companies (As per Schedule III)

DK Goel Accountancy Class 12 Solutions Chapter 1 Financial Statements of Companies (As per Schedule III) which is outlined by expert Accountancy teachers from the latest version of DK Goel Accountancy Class 12 textbook solutions. We at BYJUâ€™S provide DK Goel Solutions to assist students to comprehend all the theories in particular.

There are numerous concepts in Accountancy, but the concepts of Admission of a partner, Accounting Ratios and Cash Flow Statement (As per AS – 3 Revised) is important.

## DK Goel Solutions Class 12 – Chapter 1 – Part B

Question 1

On 1st April 2018, ABC Ltd. was established with an authorized capital of â‚¹. 25,00,000/- divided into 2,50,000 equity shares of â‚¹. 10/- each. Out of these, the company issued 1,00,000 equity shares of â‚¹. 10/- each at a premium of 10%. The amount was payable as follows:

On Application: â‚¹. 4/- (including premium)

On Allotment: â‚¹. 4/-

On Final Call: â‚¹. 3/-

The public applied for 90,000 equity shares and all the money was duly received. How will you show the â€˜Share Capitalâ€™ in the Balance Sheet of a company? Also, prepare â€˜notes to accountsâ€™ for the same.

Solution:

EXTRACT OF BALANCE SHEET OF ABC LTD.

As at 31st March 2019

Particulars Note No. Amount

Current year

Amount

Previous year

#### â‚¹

â‚¹
EQUITY AND LIABILITIES
Shareholderâ€™s Funds:
Share Capital 1 9,00,000

Notes to Accounts:

Particulars

#### â‚¹

Share Capital:
Authorised Capital:
2,50,000 Equity Shares of â‚¹.10/- each 25,00,000
Issued Capital:
1,00,000 Equity Shares of â‚¹. 10/- each 10,00,000
Subscribed and Fully Paid
90,000 Equity Shares of â‚¹. 10/- each 9,00,000

Question 2

French Ltd. has an opening debit balance of â‚¹. 5,00,000/- in Reserves and Surplus as Balance of Statement of Profit and Loss. It earned a profit of â‚¹. 8,00,000/- for the year ended March 31st 2019. How would you show these items in the Balance Sheet and notes to accounts?

Solution:

French Ltd.

EXTRACT OF BALANCE SHEET As at 31st March 2019

Particulars Note No. 31.03.2019 31.03.2018

#### â‚¹

â‚¹
EQUITY AND LIABILITIES
Shareholderâ€™s Funds:
Reserves and Surplus 1 3,00,000 (5,00,000)

Notes to Accounts:

Particulars

#### â‚¹

Reserves and Surplus:
Surplus
Balance in the statement of P&L (Opening) (5,00,000)
Surplus for the period 8,00,000 3,00,000

Question 3

Neptune Ltd. has the following balances on 1st April 2018:

â‚¹

General reserve 4,50,000

Statements of P&L 2,00,000

During the year ended 31st March 2019, it incurred a loss of â‚¹.3,20,000/-. How would you show these items in the Balance Sheet and notes to accounts?

Solution:

Neptune Ltd.

EXTRACT OF BALANCE SHEET As at 31st March 2019

Particulars Note No. 31.03.2019 31.03.2018

#### â‚¹

â‚¹
EQUITY AND LIABILITIES
Shareholderâ€™s Funds:
Reserves and Surplus 1 3,30,000 6,50,000

Notes to Accounts:

Particulars

#### â‚¹

Reserves and Surplus:
General Reserve 4,50,000
Surplus
Balance in the statement of P&L (Opening) 2,00,000
Surplus for the period (3,20,000) (1,20,000)
3,30,000

Question 4

Name the sub-headings under which the shareholderâ€™s funds shall be classified in a companyâ€™s balance sheet.

Solution:

Shareholderâ€™s funds shall be classified as follows:

• Share Capital
• Reserves and Surplus
• Money received against share warrants

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 DK Goel Accountancy Solutions Class 12 â€“ Part B (Chapter wise) Chapter 2 Financial Statements Analysis Chapter 3 Tools for Financial Analysis: Comparative Statements Chapter 4 Common Size Statements Chapter 5 Accounting Ratios Chapter 6 Cash Flow Statement (As per AS â€“ 3 Revised)

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