The following balances have been extracted from the books of Vanity Ltd. as at 31 $^{s t}$ March, 2017:
Trial Balance as at 31 $^{s t}$ March, 2017
Particulars Debit
(Rs.) Credit
(Rs.)
Equity Share Capital ( $5, 000$ share of $R s . 100$
each fully paid) $5, 00, 000$
Fixed Assets $7, 30, 000$
Reserves Surplus $2, 00, 000$
Inventories $50, 000$
Cash and Bank Balances $1, 70, 000$
Creditors $40, 000$
Bill Payable $20, 000$
Underwriting Commission on issue of shares $10, 000$
$5 %$ Debentures ( $\frac{1}{5}$ of the Debentures to be redeemed
on 31 $^{s t}$ March, 2018) $2, 00, 000$
Proposed Dividend $12, 000$
Interest accrued and due on $5 %$ Debentures $8, 000$
Trade Receivables $20, 000$
TOTAL $¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 9, 80, 000 - -------- -$ $¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 9, 80, 000 - -------- -$
You are required to prepare as at 31 $^{s t}$ March, 2017:
(i) The Balance Sheet of Vanity Ltd. as per Schedule III of the Companies Act, 2013
(ii) Notes to Accounts.

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Solution

BALANCE SHEET As On 31st March 2017
S. No. Particulars Note No. 31.3.17 31.3.16

1.
2.
3. EQUITY and LIABILITIES
Shareholder's funds
a) Share Capital
b) Reserves and Surplus
Non Current Liabilities
Long term Borrowings
(5% Debentures)
Current Liabilities
a) Trade Payables
b) Other Current Liabilities
c) Short term Provisions
1
2
3
4
5
6
500000
190000
160000
60000
48000
12000
TOTAL 970000

1.
2. ASSETS
Non Current Assets
Fixed Assets
Current Assets
a) Inventories
b) Trade Receivables
c) Cash and Bank Balance

730000
50000
20000
170000
TOTAL 970000
Notes To Accounts:
Particulars Amount Amount
1. Share Capital
Authorized Capital
........ Equity Shares @ Rs. 100
Issued Capital
........ Equity Shares @ Rs. 100
Subscribed Capital
Subscribed and Fully Paid Up
5000 Equity Shares @ 10 Rs. 100
( _ )
( _ )

( _ )
( _ )
500000
2. Reserves and Surplus
less: Underwriting Commission 200000
(10000)
190000
3. Long term Borrowings
5 % Debentures
160000
4. Trade Payables
Creditors
Bills Payable

40000
20000
5. Other Current Liabilities
Current Maturity of Long Term Debts-
5% Debentures
Interest accrued and Due on
5% Debentures
40000
8000
6. Short term Provisions
Proposed Dividend
12000

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Similar questions

From the following extracts of Balance Sheet of Exe Ltd., calculate Cash Flow from Financing Activities:

Particulars	31^st March, 2019 (₹)	31^st March, 2018 (₹)
Equity Share Capital	5,25,000	4,00,000
10% Preference Share Capital	4,00,000	5,50,000
Securities Premium Reserve	2,25,000	1,00,000
12% Debentures	4,00,000	3,00,000

Additional Information:
1. Equity Shares were issued on 31st March, 2019.
2. Interim dividend on Equity Shares was paid @ 15%.
3. Preference Shares were redeemed on 31st March, 2019 at a premium of 5%. Premium paid was debited to Statement of Profit and Loss.
4. 12% Debentures of face value ₹ 1,00,000 were issued on 31st March, 2019.

Q. On 1st June, 2015, R Energy Ltd. issued 10,000, 7% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% at the end of five years . All the debentures were subscribed and allotment was made . Loss on issue of Debentures is to be written off over the life of the debentures.
Prepare the Balance Sheet (extract) as at 31st March, 2016 and 31st March, 2017 showing Loss on issue of Debentures.

Following is the Balance Sheet of Mevanca Limited as at 31st March, 2017:

Mevanca Limited BALANCE SHEET
as at 31st March, 2017:
Particulars	Note No.	31st March, 2017 (₹)	31st March, 2016 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		3,00,000	1,00,000
(b) Reserves and Surplus	1	25,000	1,20,000
2. Non-Current Liabilities
Long-term Borrowings	2	80,000	60,000
3. Current Liabilities
(a) Trade Payables		6,000	20,000
(b) Short-term Provisions	3	68,000	70,000
Total		4,79,000	3,70,000
II. ASSETS
1. Non-Current Assets
Fixed Assets	4	3,36,000	1,92,000
2. Current Assets
(a) Inventories		67,000	60,000
(b) Trade Receivables		51,000	65,000
(c) Cash and Cash Equivalents		25,000	49,000
(d) Other Current Assets		…	4,000
Total		4,79,000	3,70,000

Notes to Accounts

Particulars	31st March, 2017 (₹)	31st March, 2016 (₹)
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss	25,000	1,20,000
	25,000	1,20,000
2. Long-term Borrowings
10% Long-term Loan	80,000	60,000
	80,000	60,000
3. Short-term Provisions
Provision for Tax	68,000	70,000
	68,000	70,000
4. Fixed Assets
Machinery	3,84,000	2,15,000
Accumulated Depreciation	(48,000)	(23,000)
	3,36,000	1,92,000

Additional Information:
(i) Additional loan was taken on 1st July, 2016.
(ii) Tax of ₹ 53,000 was paid during the year.
Prepare Cash Flow Statement.

Following are the balance sheets of Alpha Ltd. as at March 31^st, 2016 and 2017:

Particulars	2016 Rs.	2017 Rs.
I. Equity and Liabilities
Equity share capital	2,00,000	4,00,000
Reserves and surplus	1,00,000	1,50,000
Long-term borrowings	2,00,000	3,00,000
Short-term borrowings	50,000	70,000
Trade payables	30,000	60,000
Short-term provisions	20,000	10,000
Other current liabilities	20,000	30,000
Total	6,20,000	10,20,000
II. Assets
Fixed assets	2,00,000	5,00,000
Non-current investments	1,00,000	1,25,000
Current investments	60,000	80,000
Inventories	1,35,000	1,55,000
Trade receivables	60,000	90,000
Short term loans and advances	40,000	60,000
Cash at bank	25,000	10,000
Total	6,20,000	10,20,000

Q. Godrej Ltd. has 20,000; 7% Debentures of ₹ 100 each due for redemption on 31st August, 2018. There is a balance of ₹ 3,50,000 in Debentures Redemption Reserve Account as on 31st March, 2016. Investment, as required by the Companies Act, 2013 is made on 1st April, 2017 in fixed deposit bearing interest @ 6% p.a. Bank deducted TDS @ 10% on its maturity which is 31st March, 2018.
Pass Journal entries for redemption of debentures.

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Particulars	Debit (Rs.)	Credit (Rs.)
Equity Share Capital ( $5, 000$ share of $R s . 100$ each fully paid)		$5, 00, 000$
Fixed Assets	$7, 30, 000$
Reserves Surplus		$2, 00, 000$
Inventories	$50, 000$
Cash and Bank Balances	$1, 70, 000$
Creditors		$40, 000$
Bill Payable		$20, 000$
Underwriting Commission on issue of shares	$10, 000$
$5 %$ Debentures ( $\frac{1}{5}$ of the Debentures to be redeemed on 31 $^{s t}$ March, 2018)		$2, 00, 000$
Proposed Dividend		$12, 000$
Interest accrued and due on $5 %$ Debentures		$8, 000$
Trade Receivables	$20, 000$
TOTAL	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 9, 80, 000 - -------- -$	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 9, 80, 000 - -------- -$

S. No.	Particulars	Note No.	31.3.17	31.3.16
1. 2. 3.	EQUITY and LIABILITIES Shareholder's funds a) Share Capital b) Reserves and Surplus Non Current Liabilities Long term Borrowings (5% Debentures) Current Liabilities a) Trade Payables b) Other Current Liabilities c) Short term Provisions	1 2 3 4 5 6	500000 190000 160000 60000 48000 12000
	TOTAL		970000
1. 2.	ASSETS Non Current Assets Fixed Assets Current Assets a) Inventories b) Trade Receivables c) Cash and Bank Balance		730000 50000 20000 170000
	TOTAL		970000

Particulars	Amount	Amount
1. Share Capital Authorized Capital ........ Equity Shares @ Rs. 100 Issued Capital ........ Equity Shares @ Rs. 100 Subscribed Capital Subscribed and Fully Paid Up 5000 Equity Shares @ 10 Rs. 100	( ___ ) ( ___ )	( ___ ) ( ___ ) 500000
2. Reserves and Surplus less: Underwriting Commission	200000 (10000)	190000
3. Long term Borrowings 5 % Debentures		160000
4. Trade Payables Creditors Bills Payable		40000 20000
5. Other Current Liabilities Current Maturity of Long Term Debts- 5% Debentures Interest accrued and Due on 5% Debentures		40000 8000
6. Short term Provisions Proposed Dividend		12000