Question

How would you show the following items in a Company's Balance Sheet as at 31st March, 2017 :
$\begin{array}{cc}\text{8 \% Debentures}& 5,00,000\\ \text{Trade Payables}& 1,50,000\\ \text{Provision for Taxation}& 1,00,000\\ \text{Proposed Dividend}& 60,000\end{array}$

Answer 1

$\text{EXTRACT OF BALANCE SHEET}$ $\text{as at 31st March, 2017}$
$\begin{array}{cccc}\text{Particulars}& \text{Note}& \text{31st}& \text{31st}\\ & \text{no.}& \text{March,}& \text{March,}\\ & & 2017& 2016\\ \text{I. EQUITY AND LIABILITIES:}& & \text{Rs.}& \text{Rs.}\\ \text{1. Non Current Liabilities}& & & \\ \text{(a) Long term Borrowings}& 1& 5,00,000& \\ \text{2. Current Liabilities}& & & \\ \text{(a) Trade Payables}& & 1,50,000& \\ \text{(b) Short term Provisions}& 2& 1,00,000& \end{array}$

Notes to Accounts :

$\begin{array}{cc}& \text{Rs}\\ \text{(1) Long term Borrowings :}& \\ \text{8 \% Debentures}& \underset{–}{5,00,000}\\ \text{(2) Short term Provisions :}& \\ \text{Provision for Taxation}& 1,00,000\end{array}$

Note : Proposed Dividend is shown as Contignment Liability in the Notes to Accounts.