Advanced AccountingMCQQuestion 5311 of 305
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14. Past Ltd. had the following items under the head "Reserves and Surplus” the Balance Sheet as on 31st March 2025: (Amount ` in lakhs) Securities Premium Account 90 Capital Reserve 40 Revaluation Reserve 70 The company had an accumulated loss of ` 280 lakhs on the same date, which was disclosed under the head "Statement of Profit and Loss" as asset in Balance Sheet. What should be disclosed on the face of Balance Sheet as per Schedule III to the Companies Act, 2013?

Options

AReserve and Surplus-Securities premium 90 lakhs; others ` 110 lakh and Accumulated loss ` 280 lakhs in the Asset side.
BReserve and Surplus ` 200 lakhs; and Accumulated loss ` 280 lakhs in the Asset side.
CReserve and Surplus - ` 200 lakhs only (D Reserve and Surplus - ` 80 lakhs only
D
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Correct Answer

Option DCorrect Option

All Options:

  • AReserve and Surplus-Securities premium 90 lakhs; others ` 110 lakh and Accumulated loss ` 280 lakhs in the Asset side.
  • BReserve and Surplus ` 200 lakhs; and Accumulated loss ` 280 lakhs in the Asset side.
  • CReserve and Surplus - ` 200 lakhs only (D Reserve and Surplus - ` 80 lakhs only
  • D

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Detailed Solution & Explanation

Under Schedule III to the Companies Act, 2013:
1. The debit balance of the Statement of Profit and Loss (accumulated loss of 280\displaystyle `\,280 lakhs) should be disclosed as a negative figure under the head 'Reserves and Surplus'.
2. Total of other reserves = Securities Premium (90) + Capital Reserve (40) + Revaluation Reserve (70) = 200\displaystyle `\,200 lakhs.
3. Net Reserves and Surplus = 200280=(80)\displaystyle 200 - 280 = `\,(80) lakhs (disclosed as a negative amount on the face of the Balance Sheet).
Hence, **Option D** is the correct answer.

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