© The Institute of Chartered Accountants of India
FINANCIAL STATEMENTS OF COMPANIES 4.49 (5) Balance at Bank includes ` 2,000 with Perfect Bank Ltd., which is not a Scheduled Bank. (6) The company had contract for the erection of machinery at ` 1,50,000 which is still incomplete. Solution Pioneer Ltd. Balance Sheet as on 31st March, 20X1 Particulars Notes ` Equity and Liabilities 1 Shareholders’ funds a Share capital 1 9,99,000 b Reserves and Surplus 2 2,96,700 2 Non-current liabilities a Long-term borrowings 3 2,63,500 3 Current liabilities a Trade Payables 2,00,000 b Other current liabilities 4 67,500 c Short-term provisions 5 68,000 Total 18,94,700 Assets 1 Non-current assets a Fixed assets Tangible assets 6 11,25,000 2 Current assets a Inventories 7 2,50,000 b Trade receivables 8 2,00,000 c Cash and bank balances 9 2,77,000 d Short-term loans and advances 42,700 Total 18,94,700 © The Institute of Chartered Accountants of India
4.50 ACCOUNTING Notes to accounts ` . 1 Share Capital Equity share capital Issued & subscribed & called up 10,000 Equity Shares of ` 100 each (Of the above 2,000 shares have been issued for consideration other than cash) 10,00,000 Less: Calls in arrears (1,000) 9,99,000 Total 9,99,000 2 Reserves and Surplus General Reserve 2,10,000 Surplus (Profit & Loss A/c) 86,700 Total 2,96,700 3 Long-term borrowings Secured Term Loans Loan from State Financial Corporation (1,50,000 – 7,500) (Secured by hypothecation of Plant and Machinery) 1,42,500 Unsecured loan 1,21,000 Total 2,63,500 4 Other current liabilities Interest accrued but not due on loans (SFC) 7,500 Dividend Payable 60,000 Total 67,500 5 Short-term provisions Provision for taxation 68,000 Total 68,000 6 Tangible assets Land 2,00,000 Buildings 4,00,000 Less: Depreciation (50,000) (b.f.) 3,50,000 Plant & Machinery 7,00,000 Less: Depreciation (1,75,000) (b.f.) 5,25,000 © The Institute of Chartered Accountants of India
FINANCIAL STATEMENTS OF COMPANIES 4.51 Furniture & Fittings 62,500 Less: Depreciation (12,500) (b.f.) 50,000 Total 11,25,000 7 Inventories Raw Material 50,000 Finished goods 2,00,000 Total 2,50,000 8 Trade receivables Debts outstanding for a period exceeding six months 52,000 Other Debts 1,48,000 Total 2,00,000 9 Cash and bank balances Cash and cash equivalents Cash at bank with Scheduled Banks 2,45,000 with others (Perfect Bank Ltd.) 2,000 2,47,000 Cash in hand Other bank balances 30,000 Nil Total 2,77,000 Note : Estimated amount of contract remaining to be executed on capital account and not provided for ` 1,50,000. It has been assumed that the company had given this contract for purchase of machinery. © The Institute of Chartered Accountants of India
4.52 ACCOUNTING SUMMARY Meaning of Company has been defined Companies Act, 2013. Books of accounts should be maintained at Registered office of company. Proper books are not deemed to be kept if they do not provide a true and fair view of state of affairs of company. A number of Statutory Books have been prescribed under Companies Act which is to be maintained along with statistical books to keep a record of all transactions. Annual Return is to be filed by every company within 60 days of holding Annual general meeting.
- Summer '18