Question 26 Chapter 1 VK Publications Class 12 Part 2

Question 26 Chapter 1 VK Publications Class 12 Part 2 – 2021

Table of Contents

The solution of Question 26 Chapter 1 VK Publications Class 12 Part 2: –

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

26. The following particulars have been extracted from the books of Creative Ltd. as at 31stMarch, 2018:

Particulars	Rs.	Particulars	Rs.
Provisions for taxation	2,70,000	Laon and advance	18,000
Reserves and Surplus	5,94,000	Current assets	8,80,200
Current liabilities	5,92,200	Inventories	36,000
Short term Bank loan	90,000	7% Debentures	2,70,000
Non current investment	3,42,000	Equity Share Capital	7,20,000
Fixed assets	12,60,000	(Fully paid shares of Rs. 100 each)

A law suit is pending against the company for a claim of Rs 15,000. Prepare the Balance Sheetof the company as prescribed under Schedule III, Part I of the Companies Act.

The solution of Question 26 Chapter 1 VK Publications Class 12 Part 2: –

Particulars	Note No.	Current Year (Rs. )	Previous Year (Rs.)
EQUITY AND LIABILITIES
1.Shareholders’ Funds
(a) Share Capital	1.	7,20,000
(b) Reserves and Surplus	2.	5,94,000
2. Non-current Liabilities
(a) Long-term Borrowings	3.	2,70,000
3. Current Liabilities
(a) Short-term Borrowings	4.	90,000
(b) Other Current Liabilities	5.	5,92,200
(c) Short-term Provisions	6.	2,70,000

Total		25,36,200

II. ASSETS
1. Non-current Assets
a) Fixed Assets		12,60,000
b) Non-current Investments		3,42,000

2. Current Assets
(a) Short-term Loans and Advances		18,000
(b) Inventories		36,000
(c) Other Current Assets		8,80,200

Total		25,36,200

Notes to Accounts:

Particulars	Amount (Rs.)
1. Shareholders’ Fund
Share Capital (7,200 Fully paid shares of 100 each)	7,20,000

2. Long-term Borrowings
7% debentures	2,70,000

3.Short-term Borrowings
Short-term Bank Loan	90,000

4. Short-term Provisions
Provision for Taxation	2,70,000