Question 2 Following particulars are furnished by Bela Ltd for the year ended 31st March 2025. Particulars Debit Credit Equity Share Capital (Face ...

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Question 2 Following particulars are furnished by Bela Ltd for the year ended 31st March 2025. Particulars Debit Credit Equity Share Capital (Face Value 100) 6,00,000 8% Preference Share Capital (Face Value 100) 3,00,000 Factory Building 6,20,000 Plant & Machinery 4,98,000 Furniture & Fittings 1,52,000 ADVANCED ACCOUNTING General Reserve 88,000 Term Loan from Public Financial Corp. 3,40,000 Inventory Raw Material 1,35,000 Finished Goods 66,000 Provision for taxation 12,000 Dividend Payable 10,000 Preliminary Expenses 21,000 Profit & Loss A/c 99,000 Cash in hand 16,000 Cash at Bank 39,000 Trade Receivables 2,38,000 Unsecured Loan 85,000 Trade Payables 2,45,000 Outstanding Expenses 6,000 17,85,000 17,85,000 Other Information: (1) The cost of assets was: Factory Building 6,94,000 Plant & Machinery 5,35,000 Furniture & Fittings 1,76,000 (2) The Equity Capital on 01/04/2024 stood at 5,000 shares fully paid up and 1,000 shares 70 paid up. The directors made final call of 30 per share on 01/10/2024. A shareholder could not pay the call on 75 shares and his shares were forfeited. They were reissued @ 70 per share as fully paid. (3) Profit on reissue of forfeited equity shares was included in profit and loss account. (4) Bills discounted but not yet matured 15,000 (5) The balance of Term Loan from Public Finance Corporation includes 8,000 for interest accrued but not due. The loan is secured against hypothecation of Plant and Machinery. (6) The directors declared a dividend of 5% on Equity shares on 10/04/2025. You are required to prepare the Balance sheet as at 31st March, 2025 as required under Part-1 of the schedule III of the Companies Act. Workings should form part of the answer. (14 Marks)

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Answer Solution: Balance Sheet of Bela Ltd. as at 31st March, 2025 Particulars Note No Equity and Liabilities 1 Shareholders' funds a Share capital 1 9,00,000 b Reserves and Surplus 2 1,66,000 2 Non-current liabilities a Long-term borrowings 3 4,17,000 3 Current liabilities a Trade Payables 4 2,45,000 b Other current liabilities 5 24,000 c Short-term provisions 6 12,000 Total 17,64,000 ASSETS 1 Non-current assets a PPE 7 12,70,000 2 Current assets a Inventories 8 2,01,000 b Trade receivables 9 2,38,000 c Cash and cash equivalents 10 55,000 Total 17,64,000 ADVANCED ACCOUNTING Notes to accounts 1 Share Capital Equity share capital Issued, Subscribed and paid up 6,000 Equity Shares of 100 each (A) 6,00,000 Preference share capital Issued, subscribed and paid up 3,000 8% Preference shares of 100 each (B) 3,00,000 Total (A + B) 9,00,000 2 Reserves and Surplus Capital reserve (W.N.) 3,000 General reserve 88,000 Add: Profit and Loss Account 99,000 Less: Preliminary expenses (21,000) Less: profit on reissue (75x 40) (3,000) 75,000 Total 1,66,000 3 Long-term borrowings Secured- Term Loans Loan from Public Financial Corporation (3,40,000 – 8,000) (Secured by hypothecation of Plant and Machinery) 3,32,000 Unsecured loan 85,000 Total 4,17,000 4 Trade Payables 2,45,000 5 Other current liabilities Interest accrued but not due on loans (PFC) 8,000 Dividend Payable 10,000 Outstanding expenses 6,000 Total 24,000 6 Short-term provisions 12,000 Provision for taxation 7 PPE Factory Buildings 6,94,000 Less: Depreciation (74,000) 6,20,000 Plant & Machinery 5,35,000 Less: Depreciation (37,000) 4,98,000 Furniture & Fittings 1,76,000 Less: Depreciation (24,000) 1,52,000 Total 12,70,000 8 Inventories Raw Material 1,35,000 Finished goods 66,000 Total 2,01,000 9 Trade receivables 2,38,000 10 Cash and cash equivalents Cash at bank 39,000 Cash in hand 16,000 Total 55,000 Working Note: Calculation of Capital Reserve on reissue of forfeited equity shares: Balance in forfeiture Account = 5,250 Discount on reissue of shares = 2,250 Amount to be transferred to capital reserve = 5,250 - 2,250 = 3,000 Note: 1. The final dividend will not be recognized as a liability at the balance sheet date (even if it is declared after reporting date but before approval of the financial statements) as per Accounting Standards. Hence, it has not been recognized in the financial statements for the year ended 31 March, 2025. Such dividends will be disclosed in notes only. 2. There is a Contingent Liability for bills discounted but not yet matured amounting to 15,000 ADVANCED ACCOUNTING

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