Question

Olympiad Ltd. has an opening debit balance of Rs. 5,00,000 in Reserves and Surplus as Balance of Statement of Profit & Loss. It earned a profit of Rs. 8,00,000 for the year ended 31st March, 2017. How would you show these items in the Balance Sheet and notes to accounts ?

Answer 1

Olympus Ltd.

EXTRACT OF BALANCE SHEET as at 31 st March, 2017

$\begin{array}{cccc}\text{Particulars}& \text{Note}& \text{31.03.2017}& \text{31.03.2016}\\ & \text{No.}& & \\ & & \text{Rs.}& \text{Rs.}\\ \text{1. EQUITY AND LIABILITIES :}& & & \\ \text{(1) Shareholder's Funds}& & & \\ \text{Reserves and Surplus}& 1& 3,00,000& (5,00,000)\end{array}$

Notes to Accounts :

$\begin{array}{ccc}& & \text{31.03.2017}\\ \text{(1) Reserves and Surplus :}& & \\ \text{Surplus}& & \\ \text{Balance in Statement of Profit}\&\text{Loss (Opening)}& (5,00,000)& \\ \text{Surplus for the period}& \underset{–}{8,00,000}& 3,00,000\end{array}$