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 BYJU’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 required.

DK Goel Solutions Class 12 – Chapter 1 – Part B

Question 1

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

On Application: ₹. 4/- (including premium)

On Allotment : ₹. 4/-

On Final Call : ₹. 3/-

The public applied for 90,000 equity shares and all the money was duly received. How will you show the ‘Share Capital’ in the Balance Sheet of a company? Also, prepare ‘notes to accounts’ 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

EQUITY AND LIABILITIES
Shareholder’s Funds:
Share Capital 1 9,00,000

Notes to Accounts:

Particulars

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

Question 2

French Ltd. has an opening debit balance of ₹. 5,00,000/- in Reserves and Surplus as Balance of Statement of Profit and Loss. It earned a profit of ₹. 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

EQUITY AND LIABILITIES
Shareholder’s Funds:
Reserves and Surplus 1 3,00,000 (5,00,000)

Notes to Accounts:

Particulars

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:

General reserve 4,50,000

Statements of P&L 2,00,000

During the year ended 31st March 2019, it incurred a loss of ₹.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

EQUITY AND LIABILITIES
Shareholder’s Funds:
Reserves and Surplus 1 3,30,000 6,50,000

Notes to Accounts:

Particulars

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 shareholder’s funds shall be classified in a company’s balance sheet.

Solution:

Shareholder’s funds shall be classified as follows:

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

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