Question

From the following information, prepare a balance sheet of Mr. Raghav as at 31st March, 2016.

(i) In order permanence.

(ii) In order of liquidity

$\begin{array}{cccc}\text{Particulars}& \text{Amt (Rs.)}& \text{Particulars}& \text{Amt (Rs.)}\\ \text{Plant and Machinery}& 2,00,000& \text{Furniture and Fixtures}& 40,000\\ \text{Prepaid Expenses}& 2,000& \text{Accrued Income}& 4,000\\ \text{Income Received in Advance}& 4,000& \text{Outstanding Expenses}& 2,000\\ \text{Bills Payable}& 6,000& \text{Bills Receivables}& 4,000\\ \text{Sundry Debtors}& 2,00,000& \text{Sundry Creditors}& 1,98,000\\ \text{Bank Overdraft}& 20,000& \text{Investments in Shares of Raghav Ltd.}& 20,000\\ \text{Long-term Loan from Bank}& 2,00,000& \text{Closing Stock}& 1,70,000\\ \text{Capital}& 4,00,000& \text{Building}& 2,00,000\\ \text{Land}& 20,000& \text{Goodwill}& 20,000\\ \text{Drawings}& 20,000& \text{Net Profit}& 1,20,000\\ \text{Cash in Hand}& 10,000& \text{Cash at Bank}& 38,000\\ \text{Income Tax Paid}& 2,000& & \end{array}$

Answer 1

(i)
Balance Sheet
as at 31st March, 2016

$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt. (Rs.)}& \text{Assets}& \text{Amt. (Rs.)}\\ \text{Capital:}& & \text{Fixed Assests:}& \\ \text{Opening Balance}4,00,000& & \text{Goodwill}& 20,000\\ (+)\text{Net Profit}\underset{–}{1,20,000}& & \text{Land}& 20,000\\ 5,20,000& & \text{Building}& 2,00,000\\ (-)\text{Drawings}20,000& & \text{Plant and Machineray}& 2,00,000\\ (-)\text{Income Tax}\underset{–}{2,000}& 4,98,000& \text{Furniture and Fixtures}& 40,000\\ \text{Long-term Liabilities:}& & \text{Investments:}& \\ \text{Long-term Loan}& 2,00,000& \text{Shares of Raghav Ltd}& 20,000\\ \text{Current Liabilities:}& & \text{Current Assests:}& \\ \text{Income Received-in-Advance}& 4,000& \text{Closing Stock}& 1,70,000\\ \text{Sundry Creditors}& 1,98,000& \text{Accured Income}& 4,000\\ \text{Outstanding Expenses}& 2,000& \text{Prepaid Expenses}& 2,000\\ \text{Bills Payable}& 6,000& \text{Sundry Debtors}& 2,00,000\\ \text{Bank Overdraft}& 20,000& \text{Bills Receivable}& 4,000\\ & & \text{Cash at Bank}& 38,000\\ & & \text{Cash in Hand}& 10,000\\ & \overline{\underset{–}{\underset{–}{9,28,000}}}& & \overline{\underset{–}{\underset{–}{9,28,000}}}\end{array}$

(ii)

Balance Sheet
as at 31st March, 2016
$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt (Rs.)}& \text{Assets}& \text{Amt. (Rs.)}\\ \text{Current Liabilities:}& & \text{Current Assets:}& \\ \text{Bank Overdraft}& 20,000& \text{Cash in Hand}& 10,000\\ \text{Bills Payable}& 6,000& \text{Cash at Bank}& 38,000\\ \text{Outstanding Expenses}& 2,000& \text{Bills Receivable}& 4,000\\ \text{Sundry Creditors}& 1,98,000& \text{Sundry Debtors}& 2,00,000\\ \text{Income Received in Advance}& 4,000& \text{Prepaid Expenses}& 2,000\\ \text{Long-term Liabilities:}& & \text{Accrued Income}& 4,000\\ \text{Long-term Loan}& 2,00,000& \text{Closing Stock}& 1,70,000\\ \text{Capital:}& & \text{Investments:}& \\ \text{Opening Balance}4,00,000& & \text{Shares of Raghav Ltd}& 20,000\\ (+)\text{Net Profit}\underset{–}{1,20,000}& & \text{Fixed Assests:}& \\ 5,20,000& & \text{Furniture and Fixtures}& 40,000\\ (-)\text{Drawings}20,000& & \text{Plant and Machinery}& 2,00,000\\ (-)\text{Income Tax}\underset{–}{2,000}& 4,98,000& \text{Building}& 2,00,000\\ & & \text{Land}& 20,000\\ & & \text{Goodwill}& 20,000\\ & \overline{\underset{–}{\underset{–}{9,28,000}}}& & \overline{\underset{–}{\underset{–}{9,28,000}}}\end{array}$