Question 1

Question 01 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 01 Chapter 1 of +2-B
Arrangement of Balance sheet Items
1. (Exhibiting full paid-up capital) Punjab Steel Ltd. Has an authorized capital of 50,00,000 divided into shares of Rs100 each. It issues 40,000 shares to the public.Public subscribed for 38,000 shares and received the full amount on shares. Show share capital in the Balance Sheet.
The solution of Question 01 Chapter 1 of +2-B: - 
Balance Sheet of Punjab Steel Limited

Particulars
Note no.
Amount

I. Equity and Liabilities

Question 2

Question 02 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 02 Chapter 1 of +2-B
Arrangement of Balance sheet Items
2. (Exhibiting Not Full Paid-up Capital) Good Year Tyre Limited has an authorized capital of 20,00,000 divided into Rs 10 shares. It invited applications for 1,00,000 shares company received full face value on 99,000 shares. However, on 1,000 shares the final call of Rs 3 is not received.Show the above in the Balance Sheet.
The solution of Question 02 Chapter 1 of +2-B: - 
Balance Sheet of Good Year Tyre Limited

Particulars
Not

Question 3

Question 03 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 03 Chapter 1 of +2-B
Arrangement of Balance sheet Items
3. (Subscribed but Not Full Paid up Capital) Assam Tea Company was registered with 5,00,000 equity shares of Rs 100 each. The company invited applications for Rs 4,00,000 Equity shares. However, only 3,00,000 shares where subscribed and allotment was made to all applicants. Company called Rs 80 per share. One shareholder holding 5,000 shares did not pay first call of Rs 10. Show share capital in balance Sheet.
The solution of Ques

Question 4

Question 04 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 04 Chapter 1 of +2-B
Arrangement of Balance sheet Items
4. (Showing Full Format of Share Capital) A company has authorize share capital of Rs 10,00,000 divided into 75,000 Equity shares of Rs 10 each and 2,500 10% preference Shares of Rs 100 each. It issued 60% of Equity shares and 80% Preference Shares. Public Subscribed for 40,000 Equity share and 1,500 Preference Shares. On Equity shares company called up Rs 8 per share and on preference shares Rs 80 were called up. All calls were r

Question 5

Question 05 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 05 Chapter 1 of +2-B
Arrangement of Balance sheet Items
5. (Positive Balance in Reserve and Surplus) Ceat Tyre Limited has supplied the following details on 31-3-2018. You are required to show items in Balance Sheet.

Rs

General Reserve 
7,50,000

Securities Premium Reserve 
5,00,000

Surplus in Statement of profit and loss (Opening)
10,00,000

Company Sustained Loss Rs 6,25,000 during the year ended 31st March 2018.
The solution of Question 05 Chapter 1 of +2-B: - 
Balance S

Question 6

Question 06 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 06 Chapter 1 of +2-B
Arrangement of Balance sheet Items
6. (Negative Balance: Reserve and Surplus) Jupitor Limited, has the following balances as on 31st March 2018.

Rs

General Reserve 
12,00,000

The surplus in Statement of profit and loss (Opening)
(7,50,000)

There is a loss of Rs 6,00,000 during the year ended 31st March 2018. exhibits the items in the Balance Sheet.
The solution of Question 06 Chapter 1 of +2-B: - 
Balance Sheet of Jupitor Limited

Particulars
Note no.

Question 7

Question 07 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 07 Chapter 1 of +2-B
Arrangement of Balance sheet Items
7. (Treatment of Reserve and Surplus/Bonus Shares Issued)

Rs

General Reserve 
3,00,000

Capital Reserve
2,40,000

Securities Premium Reserve
12,60,000

Surplus in Statement of profit and loss (Opening)
(21,60,000)

During the current year company earned Rs 14,40,000. Bonus Share worth Rs 9,00,000 were issued out of Securities Premium Reserve.Prepare Balance Sheet.
The solution of Question 07 Chapter 1 of +2-B: - 
Balan

Question 8

Question 08 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 08 Chapter 1 of +2-B
Arrangement of Balance sheet Items
8. (Rearranging Heads of Assets & Liabilities) Rearrange the following heads of Assets and Liabilities according to the provision of Schedule III.

Liabilities
Assets

Current Liabilities
Non-Current Assets

Non-current liabilities
Current Assets

Shareholder funds

Share application money pending allotment

The solution of Question 08 Chapter 1 of +2-B: - 
Balance Sheet

Particulars
(1)

Note no.(2)
Figures as

Question 9

Question 09 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 09 Chapter 1 of +2-B
Arrangement of Balance sheet Items
9. (Example of various heads of Balance Sheet) Give three examples for each of the following :

(i) Current Assets
(ii) Reserve and Surplus

(iii) Contingent Liabilities

The solution of Question 09 Chapter 1 of +2-B: -

Current Assets

Reserve & Surplus
Contingent Liabilities

a. Cash
a. Capital Reserve
a. Bills Discounted but not matured(to be shown as footnotes)

b. Loose tools
b. Securities Premium Reserve

Question 10

Question 10 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 10 Chapter 1 of +2-B
Arrangement of Balance sheet Items
10. (Identification of heads of Assets & Liabilities/GST) Give the heading under which the following items will be shown in a company’s balance sheet as per schedule III of Companies Act, 2013.(i) Securities Premium Reserve, (ii) General Reserve, (iii) 10% Debentures, (iv) Stores and Spare parts, (v) Patents, (vi) Input IGST, (vii) Input CGST, (viii) Input SGST.
The solution of Question 10 Chapter 1 of +2-B: -

Items

Head

Question 11

Question 11 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 11 Chapter 1 of +2-B
11. (Identification of heads of Assets & Liabilities) Give the heading under which the following items will be shown in a company’s balance sheet as per schedule III of Companies Act, 2013.(i) Licenses and Franchise, (ii) Tax Payable, (iii) Outstanding Expenses, (iv) Capital advances, (v) Debenture sinking Fund, (vi) Share forfeited account, (vii) Share issue Expenses.
The solution of Question 11 Chapter 1 of +2-B: -

Items

Heading

(i) Licenses and Franc

Question 12

Question 12 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 12 Chapter 1 of +2-B
12. (Identification of heads of Assets & Liabilities/GST) Give the heading under which the following items will be shown in a company’s balance sheet as per schedule III of Companies Act, 2013.

i.10% Debentures
ii.Bills discounted from bank

iii.Trade Payable
iv.Calls in arrears

v.Debenture Redemption Reserve
vi.General Reserve

vii.Work in Progress
viii.Investment

ix.Output CGST
x.Output SGST

The solution of Question 12 Chapter 1 of +2-B: -

Question 13

Question 13 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 13 Chapter 1 of +2-B
Arrangement of Balance sheet Items
13. (Identification of heads of Assets & Liabilities) Give the heading under which the following items will be shown in a company’s balance sheet as per schedule III of Companies Act, 2013.(i) Interest accrued on investment, (ii) Premium on redemption of debentures, (iii) Arrears of fixed cumulative preference dividend, (iv) Shares of NTPC, (v) Fixed deposits from Public, (vi) Capital Redemption Reserve, (vii) Debenture Redemp

Question 14

Question 14 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 14 Chapter 1 of +2-B
Arrangement of Balance sheet Items
14. (Identification of heads of Assets & Liabilities) Give the heading under which the following items will be shown in a company’s balance sheet as per schedule III of Companies Act, 2013.(i) Goodwill, (ii) Patents, (iii) Provident Fund, (iv) Copyrights, (v) Unclaimed Dividend, (vi) Stores and Spare Parts.
The solution of Question 14 Chapter 1 of +2-B: -

Items

Heading

(i)Goodwill
Non - Current Assets

(ii)Patents
Non

Question 15

Question 15 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 15 Chapter 1 of +2-B
Arrangement of Balance sheet Items
15. (Items under Major headings) Enumerate any two items which are included in each of the following major headings and Subheadings.(i) Long-term borrowings, (ii) Current Liabilities, (iii) Fixed Assets.
The solution of Question 15 Chapter 1 of +2-B: -

Long-term borrowings

Current Liabilities
Fixed Assets

(i)Dentures
(i) Sundry Creditors
(i) Plant & Machinery

(ii)Loan from Bank
(ii) Unclaimed Dividend
(ii) Building

Question 16

Question 16 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 16 Chapter 1 of +2-B
Arrangement of Balance sheet Items
16. (Identification of heads of Assets & Liabilities/GST) Give the heading under which the following items will be shown in a company’s balance sheet as per schedule III of Companies Act, 2013.(i) Denture sinking fund, (ii) Capital Redemption Reserve, (iii) Work in Progress, (iv) Investment in Preference Shares, (v) Security deposits, (vi) Input IGST, (vii) Output IGST.
The solution of Question 16 Chapter 1 of +2-B: -

Ite

Question 17

Question 17 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 17 Chapter 1 of +2-B
Arrangement of Balance sheet Items
17. (Treatment of Fixed Assets & Depreciation in Balance Sheet) How would you show the following items in the Balance sheet of ABC Limited as at 31st March, 2018.
(i) Total Depreciation to date as on 1st April 2017 Rs 5,00,000.(ii) Written down value of fixed assets as on 1st April 2017 Rs 10,00,000(ii) Depreciation to be written off at 25% p.a. on written down value.
The solution of Question 17 Chapter 1 of +2-B: - 
Balance S

Question 18

Question 18 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 18 Chapter 1 of +2-B
Arrangement of Balance sheet Items
18. (Reserve & surplus in Balance Sheet) How would you show the following items in the Balance sheet as at 31st March, 2018 as per the requirement of schedule III of Companies Act, 2013.General Reserve (Since March 31, 2017) Rs 7,00,000, Surplus i.e. balance in Statement of Profit & Loss (Debit Balance) for 2017-2018 Rs 3,00,000?
The solution of Question 18 Chapter 1 of +2-B: - 
Balance Sheet of ABC Limited as on 31st Marc

Question 19

Question 19 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 19 Chapter 1 of +2-B
19. (Reserve & surplus in Balance Sheet) How would you show the following items in the Balance sheet as at 31st March 2018 as per the requirement of Schedule III of Companies Act, 2013.
General Reserve (Since March 31, 2017) Rs 8,00,000, Surplus i.e. balance in Statement of Profit & Loss (Debit Balance) for 2017-2018 Rs 12,00,000?
The solution of Question 19 Chapter 1 of +2-B: - 
Balance Sheet

Particulars
Note no.
Amount

II Equity & Liabilities

Question 20

Question 20 Chapter 1 of +2-B  - USHA Publication  12 Class

Sarbjit Singh · Accepted Answer

Question 20 Chapter 1 of +2-B
20. (Equity & Liabilities with Notes to Accounts) The following figures were extracted from the Trial Balance of X Ltd. :-

Particular
Rs

Share Capital
1,00,000

Securities Premium Reserve
10,000

12% Debentures
50,000

Fixed Deposits (Cr.)
10,000

Creditors
5,000

The solution of Question 20 Chapter 1 of +2-B: - 
Balance Sheet

Particulars
Note no.
Amount

II Equity & Liabilities

1. Shareholders’ Fund

Share Capital
 
1,00,000

Re

Particulars	Note no.	Amount
I. Equity and Liabilities
1. Shareholders’ Funds
Share Capital	1	38,00,000
Total		38,00,000

Particulars	Note no.	Amount
1. Share Capital
50,000 Shares of Rs 100 each		50,00,000
2. Issued Capital
40,000 Shares of Rs 100 each		40,00,000
Subscribed & Fully Paid-up Capital
38,000 Shares of Rs 100 each		38,00,000

USHA Publication Part 2 volume I Solutions Chapter No. 1 - Financial Statements of a Company

Quick Chapter Summary & Cheat Sheet

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Table of Contents

Question 01 Chapter 1 of +2-B - USHA Publication 12 Class

The solution of Question 01 Chapter 1 of +2-B: -

Question 02 Chapter 1 of +2-B - USHA Publication 12 Class

Question 03 Chapter 1 of +2-B - USHA Publication 12 Class

Question 04 Chapter 1 of +2-B - USHA Publication 12 Class

Question 05 Chapter 1 of +2-B - USHA Publication 12 Class

Question 06 Chapter 1 of +2-B - USHA Publication 12 Class

Question 07 Chapter 1 of +2-B - USHA Publication 12 Class

Question 08 Chapter 1 of +2-B - USHA Publication 12 Class

Question 09 Chapter 1 of +2-B - USHA Publication 12 Class

Question 10 Chapter 1 of +2-B - USHA Publication 12 Class

Question 11 Chapter 1 of +2-B - USHA Publication 12 Class

Question 12 Chapter 1 of +2-B - USHA Publication 12 Class

Question 13 Chapter 1 of +2-B - USHA Publication 12 Class

Question 14 Chapter 1 of +2-B - USHA Publication 12 Class

Question 15 Chapter 1 of +2-B - USHA Publication 12 Class

Question 16 Chapter 1 of +2-B - USHA Publication 12 Class

Question 17 Chapter 1 of +2-B - USHA Publication 12 Class

Question 18 Chapter 1 of +2-B - USHA Publication 12 Class

Question 19 Chapter 1 of +2-B - USHA Publication 12 Class

Question 20 Chapter 1 of +2-B - USHA Publication 12 Class

Question 21 Chapter 1 of +2-B - USHA Publication 12 Class

Question 22 Chapter 1 of +2-B - USHA Publication 12 Class

Question 23 Chapter 1 of +2-B - USHA Publication 12 Class

Question 24 Chapter 1 of +2-B - USHA Publication 12 Class

Question 25 Chapter 1 of +2-B - USHA Publication 12 Class

Question 26 Chapter 1 of +2-B - USHA Publication 12 Class

Question 27 Chapter 1 of +2-B - USHA Publication 12 Class

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