Question

Galaxy Ltd. has the following balances on 1st April, 2016 :

Rs.

General Reserve 4,50,000

Statement of Profit & Loss 2,00,000

During the year ended 31st March, 2017, it incurred a loss of Rs. 3,20,000. How would you show these items in the Balance Sheet and notes to accounts ?

Answer 1

Galaxy Ltd.

EXTRACT OF BALANCE SHEET

as at 31st March, 2017

$\begin{array}{cccc}\text{Particulars}& \text{Note}& \text{31.03.2017}& \text{31.03.2016}\\ & \text{No.}& & \\ & & \text{Rs.}& \text{Rs.}\\ \text{1. EQUITY AND LIABILITIES :}& & & \\ \text{(1) Shareholder's Funds}& & & \\ \text{Reserves and Surplus}& 1& 3,30,000& 4,50,000\end{array}$

Notes to Accounts :

$\begin{array}{ccc}& & \text{31.03.2017}\\ \text{(1) Reserves and Surplus :}& & \\ \text{(a) General Reserve}& & 4,50,000\\ \text{(b) Surplus :}& & \\ \text{Blance in Statement of Profit}\&\text{Loss (Opening)}& 2,00,000& \\ \text{Surplus (Loss) for the Period}& \underset{–}{(3,20,000)}& \underset{–}{(1,20,000)}\\ & & \underset{–}{\underset{–}{3,30,000}}\end{array}$