Advertisement

Question 6 Chapter 1 of +2-B – T.S. Grewal 12 Class

Question 6 Chapter 1 of +2-B
Question No. 6 - Chapter No.1 - T.S. Grewal +2 Book Part B-min

Advertisement

Question 6 Chapter 1 of +2-B

Advertisement

6. A company has an opening credit balance in surplus, i.e., Balance in the statement of profit and loss of Rs 1,00,000. During the year, it earned a profit of Rs 75,000. It decided to transfer Rs 15,000 to debentures redemption reserve (DRR) and a dividend of Rs 25,000.
How will be appropriations shown in the financial statements?

The solution of Question 6 Chapter 1 of +2-B: – 

 

Particular

(1)

Note No.

(2)

Figures as at the end of the Current Reporting Period
(3)

Figures as at the end of the Previous Reporting Period
(4)
I. Equity and Liabilities   
1. Shareholders’ Funds   
(a) Share Capital   
(b) Reserves and Surplus11,75,000 
  1,75,000 

 

Particular

(1)

 Amount
Reserves and Surplus  
(i) Balance in the statement of profit and loss1,00,000 
Add: Profit during the year75,000 
Less: Transfer to debentures redemption reserve(15,000) 
Proposed dividend(25,000)1,35,000
(ii) Debenture redemption reserve  
Transfer from surplus, i.e., statement of profit and loss 15,000
Total of (i) and (ii) shown in the balance sheet under the surplus 1,50,000
Contingent liabilities  
Proposed dividend 25,000
  1,75,000

Advertisement-X

 

To understand more about Balance Sheet please check out following links:

Balance Sheet: Meaning, Format & Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

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

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

Advertisement-X

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

Advertisement

Advertisement

error: Content is protected !!