Page 351 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes Illustration 3:
The following balances appear in the books of Excel books:
Particulars `
Goodwill 20,000
Plant and machinery 1,60,000
Building 1,45,000
Cash in hand 10,000
Stock in trade 70,000
Share Capital
1000 equity shares of 100 each is issued at par, Rs. 80 per share called up and paid up 80,000
8% Debentures 2,50,000
Preliminary Expenses 5,000
Creditors 55,000
Dividends Payable 25,000

Showing the above items under the major heads in accordance with section 211 and Part I of
Schedule VI of the Companies Act, 1956. Prepare a Balance Sheet of the company.
Solution:
Balance sheet of Excel Books as on................
Liabilities ` Assets `
Share Capital Fixed Assets
Authorized Capital Goodwill 20,000
1,000 Shares of ` 100 each 1,00,000 Plant & Machinery 1,60,000
Issued & Subscribed & paid up Building 1,45,000
1,000 Shares of ` 100 each 80,000 Investments —
` 80 per share called up & paid up – Current Assets, loans & Advances
Reserve & Surplus Current Assets
Secured loans 8% debentures 2,50,000 Cash in hand 10,000
Unsecured loans – Stock in Trade 70,000
Current liabilities & Provision
Current Liabilities
Dividend payable 25,000 Loan & Advances —
Creditors 55,000 Miscellaneous Expenses
Provisions Preliminary Expenses 5,000
Profit & Loss A/c —
4,10,000 4,10,000

Illustration 4:
The following ledger balances were extracted from the goods of Varun Ltd. as on 31 March
st
2006. Land and building ` 2,00,000, 12 % debentures ` 2,00,000, share capital ` 10,00,000 (equity
shares of ` 10 each fully paid up) Plant and Machinery ` 8,00,000, Goodwill ` 2,00,000, Investments
in shares of Raja Ltd. ` 2,00,000, General Reserve ` 2,00,000, Stock in trade ` 1,00,000, Bill receivable
` 1,00,000, Debtors ` 1,50,000, Creditors ` 1,00,000, Bank loans (Unsecured) ` 1,00,000, Provision
for taxation ` 55,000, Discount on issue 12% debentures ` 5,000, Proposed dividends ` 1,00,000.
You are required to prepare the balance sheet of company as per Schedule-VI Part-I of the
Companies Act 1956.

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