Preparation of Final Accounts of Companies

 Provisions of Companies Act, 2013

 Schedule III
 Adjustments
 Practical Problems and Solutions
 Provisions of Companies Act, 2013

The Final Accounts of a company are to be prepared according to the following provisions of the Companies Act, 2013

 Before AGM- Under Section 129(2) of the Companies Act, the Board of Directors have to lay before every AGM the
Balance Sheet, the Profit & Loss Account and Directors Report.
 Accounting Year- The period to which the accounts relate is called an Accounting Year or a Financial Year. A
Financial Year may be for a period less or more than a calendar year. It cannot exceed 15 months unless
specifically permitted by the registrar where it may extend upto 18 months.
 Balance Sheet- Every Balance Sheet of a company must give True & Fair view of the state of affairs of the company
as at the end of financial year. Every Balance Sheet must comply with the requirements of Part I of the Schedule III
of the Companies Act, 2013 as far as possible.
 Profit & Loss- Every statement of Profit & Loss must give True & Fair view of the profit or loss of the company for
the financial year. Every statement of Profit & Loss must comply with the requirements of Part II of the Schedule
III of the Companies Act, 2013 as far as possible.
 Vertical- Under Schedule III of the Companies Act, 2013 the Balance Sheet and the Statement of Profit & Loss can
be prepared only in Vertical Format.
 Main Accounts with Notes- The main items in the financial statements can be shown in the Balance Sheet and
Statement of Profit & Loss and the detailed items can be shown in the Notes to Accounts.
 Schedule III to the Companies Act, 2013

 Applicable- Schedule III of the Companies Act, 2013 provides the manner in which every company
registered under the Act shall prepare its Balance Sheet, Statement of Profit & Loss and notes thereto.

 Vertical Format- The Schedule III prescribes only the vertical format for presentation of Financial
Statements. Thus, a company does not have an option to use horizontal format for the presentation of
Financial Statements as prescribed in the original Schedule VI

 Profit & Loss- The Schedule III lays down a format for the presentation of statement of Profit & Loss

 Appropriation- This format of statement of Profit & Loss does not mention any appropriation item on its
face. The appropriations are to be presented under “Reserves & Surplus” in the Balance Sheet.

 Notes- Break-up of item in main financial statements will be shown in the Notes (not schedules).
 FORMAT OF BALANCE SHEET
Name of the company___________________________________
Balance Sheet as on___________________

Particulars Figures as at the end of Figures as at the end of

the Current Reporting the Previous Reporting
Period Period

A. EQUITY and LIABILITIES

I Shareholder’s Funds
a. Share Capital
b. Reserves & Surplus
II Share Application Money Pending Allotment
III Non Current Liabilities
a. Long Term Borrowings
b. Other Long Term Liabilities
c. Long Term Provisions
IV Current Liabilities
a. Short Term Borrowings
Particulars Figures as at the end of Figures as at the end of
the Current Reporting the Previous Reporting
Period Period

b. Trade Payables
c. Other Current Liabilities
d. Short Term Provisions
Total ××× ×××

B. ASSETS
I. Non Current Assets
a. Fixed Assets
Tangible Assets
Intangible Assets
b. Non Current Investments
c. Long Term Loans & Advances
d. Other Non Current Assets
II. Current Assets
Trade Receivables
Current Investments
A Particulars Figures as at the end of Figures as at the end of
the Current Reporting the Previous Reporting
Period Period

Inventories
Cash and Cash Equivalents
Short Term Loans & Advances
Other Current Assets
Total ××× ×××
Disclosures- A Company shall disclose the following in the notes to accounts

Share Capital- For each class of share capital (different classes of preference shares to be treated separately)
 the number and the amount of shares authorized
 The number of shares issued, subscribed and fully paid & subscribed and not fully paid
 Par value of shares
 A reconciliation of the number of shares outstanding at the beginning and at the end of the period
 The rights, preferences and restrictions attaching to that class including restrictions on the distribution of
dividends and repayment of capital
 Shares in the company held by its holding company or by its subsidiaries or associates
 Shares in the company held by any shareholder holding more than 5 percent shares

Reserves and Surplus- It shall be classified as

 Capital Reserve, Capital Redemption Reserve, Securities Premium Reserve, Debentures Redemption Reserve,
Revaluation Reserve and Other Reserves
 Surplus i.e. Balance in Statement of Profit & Loss disclosing allocations & appropriations like dividend paid,
bonus shares, transfer to/from reserves
 Debit Balance of Statement of Profit & Loss shall be shown as negative figure under the head “Surplus”
Long Term Borrowings- It shall be classified as
 Bonds/Debentures
 Term Loan from Banks, Other Financial Institutions
 Loans & Advances from related parties, Public Deposits etc.
 Borrowings can further be classified as Secured and Unsecured.
 Terms of repayment of term loans & other loans

Other Long Term Liabilities- It shall be classified as

 Long Term Trade Payables and Others

Long Term Provisions- It shall be classified as

 Provision for Employee Benefits
 Others (if specified)

Short Term Borrowings- It shall be classified as

 Loans repayable on demand from Banks & from other parties.
 Loans & Advances fro Subsidiaries/Holding Company/ Associates/Business Ventures , Deposits, Other Loans
and advances of short term nature.
 Borrowings can further be classified as Secured and Unsecured.
Trade Payables- The following points should be disclosed under this head
 The Principle amount and the Interest due thereon remaining unpaid to any supplier.
 The amount of Interest due and payable for the period of delay in making payment
 The amount of interest accrued & remaining unpaid at the end of each accounting year.

Other Current Liabilities- The amounts shall be classified as

 Current maturities of long term debt, Income received in advance, Taxes Payable
 Interest accrued but not due on borrowings, Interest accrued and due on the borrowings
 Unpaid Dividends, Unpaid Matured Deposits & Debentures and interest accrued thereon

Short Term Provisions- The amounts shall be classified as

 Provision for employee benefits and other short term provisions

Tangible Assets- Classification shall be given as

 Land & Building, Plant & Equipment, Furniture and Fixture
 Vehicles, Office Equipment, Assets under lease, Other assets

Intangible Assets- Classification shall be given as

 Goodwill, Brands/Trademarks, Computer Software, patents, copyrights, Intellectual Property Rights
 Recipes, Formulae, Models, designs.

Non Current Investments- The classification shall be as follows

 Investment in Property, in Equity Instruments, in Preference Shares, in Government Securities, in Debentures
or Bonds, in Mutual Funds and other non current investments

Long Term Loans & Advances- It shall be classified as

 Capital Advances, Security Deposits, Loans & Advances to related parties, Other long term loans & advances
 The above amounts can also be mentioned as secured, considered good and unsecured, considered good and
doubtful
 Allowance for bad & doubtful loans and advances
 Loans & Advances due by Directors or Other Officers of the company

Other Non-Current Assets- It shall be classified as

 Long Term Trade Receivables which can be further classified as a)Secured, considered good b)Unsecured,
considered good and c) doubtful
 Allowances for bad & doubtful debts
 Debts due by directors & other officers.
Trade Receivables- It shall be classified as
 Aggregate amount of Trade Receivables outstanding for a period exceeding 6 months
 Trade Receivables shall further be classified as a)Secured, considered good b)Unsecured, considered good and
c) doubtful
 Allowances for bad & doubtful debts
 Debts due by directors & other officers.

Current Investments- It shall be classified as

 Investment in Equity Instruments, Preference Shares, Government Securities
 Investment in Units, Debentures or Bonds, Mutual Funds
 Other Short Term Investments
 Note- The basis of valuation, aggregate amount of quoted investments and market value thereof and aggregate
amount of unquoted investments should also be disclosed.

Inventories- Classification can be made as

 Raw Material, Work-In-Progress, Finished Goods
 Stock-in-Trade, Stores & Spares, Loose Tools and Other Inventories
 Goods in Transit should also be disclosed.
Cash & cash Equivalents- It shall be classified as
 Balances with Banks, Cheques and drafts on hand, Cash in Hand
 Earmarked Bank Balances (e.g. Unpaid Dividend) shall be separately stated
 Bank Deposits with more than 12 months maturity shall be disclosed separately.

Short Term loans & Advances- It shall be further classified as

 Loans & Advances to related parties on short term basis which can be further classified as a)Secured, considered
good b)Unsecured, considered good and c) doubtful
 Allowances for Bad & Doubtful loans & advances shall also be disclosed
 Loans and Advances due by Directors or Other Officers of the company

Other Current Assets- Thus is an all inclusive heading, which incorporates current assets that do not fit into any
other assets categories
 Adjustments in Final Accounts
Adjustments Profit & Loss A/c Balance Sheet
1) Closing Stock Change in Inventories Asset Side
2) Depreciation Depreciation & Amortization Expenses Deduct from respective assets
3) Outstanding Expenses Add to respective expense Liability Side
4) Prepaid Expenses Deduct from respective expense Asset Side
5) Deferred Revenue Expenditure Other Expenses Remaining Balance on Asset Side
written off
6) Income due, not received Add to Income Asset Side
7) Income received in advance Deduct from Income Liability Side
8) B/R dishonoured Add to Debtors
Deduct from B/R
9) Bills Payable dishonoured Add to Creditors
Deduct from Bills Payable
10) Sales not recorded Add to Sales as per Trial Balance Add to Debtors as per Trial Balance
11) Purchases not recorded Add to Purchases as per Trial Balance Add to Creditors as per Trial Balance
12) RDD Bad Debts + New Reserve- Old Reserve Deduct New Reserve from Debtors
 Adjustments Profit & Loss A/c Balance Sheet
13) Goods lost; insurance claim due Show Net Loss (Cost less Claim) on Show Insurance Claim due on Asset
Debit Side Side
14) Goods given away as samples Show Cost in Other Expenses
15) Profit on Sale of Asset Other income Deduct W.D.V. from Asset
16) Loss on Sale of Asset Deduct from Other Income Deduct W.D.V. from Asset
17) Unclaimed Dividend Show in Other Current Liabilities
18) Interest on Debentures Finance Cost Other Current Liabilities
a) Accrued and Due
b) Accrued and Not Due
 Name of the company – Vishal Limited Balance Sheet as on 31st March 2017
Particulars Note Amount
A. EQUITY and LIABILITIES Notes to Accounts
1. Reserves & Surplus
1 Shareholder’s Funds
a. Capital Reserve 60,000
b. Profit
a. Share & Loss
Capital A/c (Credit
(Equity Balance)
Share Capital) 42,980 52,00,000
Total& Surplus
b. Reserves 1,02,980 1 1,02,980
2 Non Current Liabilities
a. Long Term Borrowings ( Loan from SBI) 8,00,000
Notes to Accounts
b. Long Term Provisions (Employees Welfare Fund) 6,00,000
2. Trade Payables
3. Current Liabilities
a. Sundry Creditors 1,00,020
b. Bills
a. Short Payable
Term Borrowings (Short Term Loan from Bank) 85,100 4,90,200
Total 1,85,120 2
b. Trade Payables 1,85,120
c. Other Current Liabilities (Unpaid Dividend) 64,800
d. Short Term Provisions (Provision for Expenses) 1,64,000
TOTAL 76,07,100
Particulars Note Amount
B. ASSETS
1. Non Current Assets
a. Fixed Assets
Tangible Assets 3 48,59,940
Intangible Assets (Patents) 10,00,000
b. Other Non Current Assets (Expenses on Issue of Shares) 25,000
2. Current Assets
a. Current Investments (Government Bonds) 3,36,000
b. Inventories (Stock in trade) 3,55,600
c. Trade Receivables 3,66,240
d. Cash & cash Equivalents (Cash at Bank) 3,14,320
e. Short Term Loans & Advances ( Advances to Employees) 3,00,000
Notes to Accounts
f. 3 Other
Tangible Assets
Current Assets (Advance Tax) 50,000
a.TOTAL
Premises 41,09,940 76,07,100
b. Furniture & Fixtures 7,50,000
c. Total 48,59,940
Name of the company – Regal Limited Balance Sheet as on 31st March 2017
Particulars Note Amount
A. EQUITY and LIABILITIES
1 Shareholder’s Funds
a. Share Capital 1 20,50,000
b. Reserves & Surplus (General Reserve) 4,15,000
2 Non Current Liabilities
a. Long Term Borrowings ( Mortgage Loan ) 3,10,000
b. Long Term Provisions (Staff Welfare Fund) 85,000
3. Current Liabilities
a. Short Term Borrowings (Cash Credit) 75,000
b. Trade Payables 2 2,04,500
Notes to Accounts 26,550
c. Short Term Provisions Notes
(Provision for tax)
to Accounts
Share Capital
TOTALa. Creditors for goods 1,68,500 31,66,050
a. Equity Share Capital 15,00,000
b. b.8% Creditors
Preference for expenses
Share Capital 36,000
5,50,000
c. c.Total
Total 20,50,000
2,04,500
Particulars Note Amount
B. ASSETS
1. Non Current Assets
a. Fixed Assets
Tangible Assets 3 22,80,600

Intangible Assets (Computer Software) 83,250

b. Non Current Investments (9% Debentures) 2,45,000
c. Other Non Current Assets (Share Issue Expenses) 30,000
2. Current Assets

a. Inventories 4 2,63,200
b. Trade Receivables (Debtors for goods) 1,90,000
c. Cash & cash Equivalents (Cash at Bank) 23,000
d. Other Current Assets (Interest accrued on Investments) 51,000
Notes
NotestotoAccounts
Accounts
3 TOTAL
3 Tangible
Inventories
Assets 31,66,050
a.a. Office
LooseEquipment
Tools 4,80,600
1,63,000
b.b. Plant
Stores
& Machinery
& Spares 18,00,000
1,00,200
c.c. Total
Total 22,80,600
2,63,200
Name of the company – Neelam Electronics Limited Balance Sheet as on 31st March 2017

Particulars Note Amount

Notes to Accounts Notes to Accounts
A.2. EQUITY
Reserves
and& Surplus
LIABILITIES 3. Trade Payables
1a.Shareholder’s
Capital Reserve
Funds a. Sundry Rs.20,000
Creditors Rs.4,80,000
b. Security Premium Rs.1,80,000
b. Bills Payable 1
Rs. 60,000
a. Share Capital 18,40,000
c. General Reserve c. Total Rs.2,00,000 Rs.5,40,000
b. Reserves & Surplus 2 9,80,000
d. Profit & Loss A/c Rs.5,80,000
2e.Non Current Liabilities
Total Rs.9,80,000
a. Long Term Borrowings ( 9% Debentures) 6,00,000
3. Current Liabilities
a. Short Term Borrowings (Bank Overdraft- Union Bank) 4,00,000
b. Trade Payables 3 5,40,000
Notes to Accounts
c. Other Current Liabilities ( Interest Due on Debentures) 13,500
a. Share(Provision
d. Short Term Provisions Capitalfor tax) 2,41,000
TOTAL
Authorized Share Capital Rs.60,00,000
46,14,500
(6,00,000 Equity Shares of Rs.10 each)
Issued, Subscribed and Fully Paid Up Rs.18,40,000
(1,84,000 Equity Shares of Rs.10 each)
 Notes to Accounts
Particulars 6. Trade Receivables Note Amount
B. ASSETS Sundry Debtors Notes to Accounts
a. Outstanding
7. Cashfor more Equivalents
& Cash than 6 months 1,80,000
1. Non Current Assets
b. Others a. Cash at Bank 68,600 9,20,000 11,00,000
a. Fixed Assets Billsb.Receivable
Cash in Hand 39,000
c. Discounted with Bank, not matured
Tangible Assets 15,000 4 10,70,000
d.Assets
Intangible Others Total
(Goodwill) 2,65,000 2,80,000
1,07,600 1,30,000
b. Non Current Investments 5 28,000
Total 13,80,000
2. Current Assets
a. Inventories 16,98,900
b. Trade Receivables Notes to Accounts 6 13,80,000
c. Cash &4.cash
Tangible Assets
Equivalents Notes to Accounts 7 1,07,600
a. Land & Building 5,00,000
5. Non Current
TOTALLess:- Depreciation Investments
(1,20,000) 3,80,000 46,14,500
b. Plant Investment in Equity Shares
& Machinery of X Limited
10,00,000
= 5000 shares of Rs.10 each,
Less:- Depreciation Rs.4 per share
(4,00,000) 6,00,000
called and paid up = Rs.20,000
c. Furniture 1,60,000
Security Deposit (Long Term)
Less:- Depreciation = Rs.8,000
(70,000) 90,000
Total Amount = Rs.28,000
Total 10,70,000
 Format of Statement of Profit & Loss

Particulars Figures for the current Figures for the Previous

reporting period reporting period
Revenue from operations
Add:- Other Income
Total Revenue
Less:- Expenses
Cost of materials consumed
Purchases of stock in trade
Changes in inventories
Employee Benefit Expenses
Finance Cost
Depreciation & Other amortization expenses
Other Expenses
Profit before Exceptional, Extraordinary items
and Tax
Less:- Exceptional Items
Particulars Figures for the current Figures for the Previous
reporting period reporting period
Profit before extraordinary items & Tax
Less:- Extra Ordinary Items
Profit Before Tax
Less:- Current & Deferred Tax
Profit / Loss for the period from operations
Company Should disclose the following points in Statement of Profit & Loss

 Revenue from Operations:- Sale of Products, Sale of Services, Other Operating Revenues , Any sale of manufacturing
scrap etc.

 Other Income:- Interest Income, Dividend Income, Profit/Loss on sale of investments, Other non operating income,
profit on sale of fixed assets etc.

 Cost of Materials Consumed:- Raw Materials and Purchases Components

 Change in Inventories:- Finished Goods (Opening Stock – Closing Stock), Work In Progress (Opening Stock – Closing
Stock) and Stock in Trade (Opening Stock – Closing Stock)

 Employee Benefit Expenses:- Salaries & wages, Contribution to Provident & Other Funds, Expenses on ESOP, Staff
welfare Expenses

 Finance Cost:- Interest on Borrowings from Bank and Others, Interest on Debentures, Finance Charges, Interest by Tax
Department, Other Borrowing Costs, Amortization of discount/premium, Expenses on issue of shares/Debentures
 Other Expenses:- Consumption of stores & spare parts, Power & Fuel, Rent, Repairs to Building & Machinery,
Insurance, rates & taxes, all types of payment to auditor for audit services, tax matters, company law matters,
management & other services etc, Loss on foreign currency transactions, expenses on CSR activities

 Exceptional Items:- Cost of restructuring, disposal of fixed assets & long term investments, legal settlement, reversal
of provisions

 Extra Ordinary Items:- Loss from attachment of property, loss from earthquake, profit from insurance claim.
Name of the company:- Sonali Limited
Profit & Loss Statement for the year ended 31st March 2017.

Particulars Note Amount

Revenue from Operations (Sales) 5,00,000
Other Income 1 25,000
Total Revenue (A) 5,25,000
Less:- Expenses
a) Cost of materials consumed (Purchases of finished goods) 1,75,000
b) Changes in Inventories (Finished Goods) (Rs.1,50,000 – Rs.30,000) 1,20,000
c) Employee Benefit Expenses (Salaries & wages) 50,000
d) Finance Cost (Interest on Debentures) 5,000
e) Depreciation (Plant & Machinery) 5,000
f) Other Expenses (General Expenses) 10,000
Notes to Accounts (3,65,000)
Total Expenses (B)
1. Other Income
Profit Before Tax (A – B) 1,60,000
a. Interest Received = Rs.20,000
Less:- Provision for Tax
b. Dividend Received = Rs.5,000 (50,000)
c. period
Profit for the Total = Rs.25,000 1,10,000
Name of the company:- Cipla Limited Profit & Loss Statement for the year ended 31st March 2017.
Notes to Accounts
Particulars 3. Depreciation & Amortization
Notes to Accounts
Expenses Note Amount Amount
2. Employee Benefit Expenses
a. Depreciation = Rs.3,32,593
Revenue from Operations (Sales) 1 72,61,657
a. Salaries Expenses
b. Amortization & Wages = Rs.5,19,426
= Rs.1,00,000
Other Incomec. (Dividend
Total on shares received)
b. Contribution to P.F = Rs.2,50,000
= Rs.4,32,593 1,30,088
Total Revenue c. Total = Rs.7,69,426
(A) 73,91,745
Less:- Expenses
a) Cost of materials consumed 30,81,842
b) Changes in Inventories ( Increase in inventories) (6,96,688)
c) Employee Benefit Expenses 2 7,69,426
d) Finance Cost 1,97,768
Notes to Accounts
e) Depreciation & Amortization 3 4,32,593
1. Expenses
Revenue from Operations
f) Other Expenses a. Sale of sugar 4
= Rs.70,66,041 28,44,558
b. Power generation income = Rs.1,95,616 (66,29,499)
Total Expenses (B)
c. Total = Rs.72,61,657
Profit Before Tax Notes to Accounts (A – B) 7,62,246
4. Other
Less:- Expenses
Provision for Tax (2,16,818)
a. Power & Fuel = Rs.15,23,312
Profit for the period 5,45,428
b. Rent, Rates & Taxes = Rs.13,21,246
c. Total = Rs.28,44,558
 Finance Cost
Other
Name of theExpenses
company:- Bharat Limited
Employee Benefit Expenses
a. Debenture Interest Paid
Profit & Loss Statement for the year ended 31st March 2017
Rs.1,80,000
a. Bad a.Debts
Wages
b. Debenture Rs.9,79,800
Interest Rs.21,100 Rs.1,80,000
Outstanding
Particulars
Add- New Provision (Rs.8,70,000 × 5%) Rs.43,500 Note Amount Amount
b. Salaries
(Adjustment 4) Rs.2,02,250
Less- Old
Revenue from Provision
Operations
Total (Sales)Expenses
c. Share Issue (Rs.35,000)Rs.50,000
Rs.11,82,050 Rs.29,600 41,50,000
Other Income Less:- Written Off (Adjustment 3) (Rs.5,000) NIL
b. General Expenses
Total Rs.68,350
Total Revenue
Total (A)
Rs.97,950 41,50,000
Less:- ExpensesRs.4,05,000
a) Cost of materials consumed (Purchases) 18,50,000
b) Changes in Inventories (Op. Stock- Cl. Stock) (Rs.7,50,000 – Rs.9,50,000) (2,00,000)
c) Employee Benefit Expenses 1 11,82,050
d) Finance Cost 2 4,05,000
e) Depreciation ( on Plant - 15% on Rs.33,00,000) (Adjustment 2) 4,95,000
f) Other Expenses 3 97,950

Total Expenses (B) 38,30,000

Profit Before Tax (A – B) 3,20,000
Less:- Provision for Tax (50% of Rs.3,20,000) (Adjustment 6) 1,60,000
Profit for the period 1,60,000
 Reserves & Surplus
Name of the company:-
Tradea.PayablesBharat Limited Balance Sheet as on 31st March 2017
General Reserve Rs.2,50,000
a. Bills Payable
b. Profit & Loss A/c Rs.3,70,000 Rs.2,62,500
Particulars Note Amount
b. Creditors
Add:- Profit of the year Rs.4,00,000 Rs.1,60,000
A. EQUITY
TotalLess:-
and LIABILITIES
Interim Dividend paid Rs.7,70,000 (Rs.3,92,500)
Net Amount Rs.2,80,000
1 Shareholder’s Funds
a. Share Capital 1 39,25,000
b. Reserves & Surplus 2 2,80,000
2 Non Current Liabilities
a. Long Term Borrowings (12% Debentures ) 30,00,000
3. Current Liabilities
a. Trade Payables 3 7,70,000
b. Other Current Liabilities (Interest On Debentures Outstanding) (Adj 4) 1,80,000
c. Short Term Provisions (Provision for tax) (Adjustment 6) 1,60,000

TOTAL 83,15,000
Share Capital
Issued, Subscribed, Called and Paid up Rs.40,00,000
Less:- Calls in Arrears (Rs.75,000)
Net Amount Rs.39,25,000
 Tangible Assets
a. Premises Rs.30,72,000
Particulars Note Amount
b. Plant
Trade ReceivablesRs.33,00,000
B. ASSETSa.
Less:- Dep.
Debtors (Rs.4,95,000) Rs.8,70,000
1. Non Current Assets
Rs.28,05,000
Less:- Provision for Doubtful Debts (Rs.43,500)
Total
Total
a. Fixed Assets
Rs.8,26,500
Rs.58,77,000 4
Tangible Assets 58,77,000
Intangible Assets (Goodwill) 2,50,000
b. Other Non Current Assets (Share Issue Expenses) (Adjustment 3) 5,000
2. Current Assets
a. Inventories (Closing Stock ) (Adjustment 1) 9,50,000
b. Trade Receivables 5 8,26,500
c. Cash & cash Equivalents (Bank) 4,06,500
TOTAL 83,15,000
 Other Expenses
Employee Benefit Expenses
a. Discount Allowed Rs.4,200
Name
b. of the company:-
Insurance Moon &&Rs.6,720
Depreciation Star Co. Limited
Amortization ExpensesProfit & Loss Statement for the year ended 31 st March 2017.
a. Wages Rs.70,000
a. Depreciation
Less:- Prepaid
b. (6720 on Plant (15%Rs.1,680
× 3/12)
Salaries on Rs.1,80,500)
Rs.50,40
Rs.18,500 Rs.27,075
c.Particulars
b. Depreciation on Furniture (10% on Rs.17,100)
Rent c. Bonus Rs.6,000
Rs.10,500
Note
Rs.1,710 Amount Amount
d. General
Revenue Expenses
from Operations (Sales) Rs.8,950 3,25,000
Total Rs.99,000
e. Total
Printing Rs.2,400 Rs.28,785
f.Other Income (Discount Received)
Advertising Rs.3,800 3,150
g.Total
BadRevenue
Debts Rs.3,200 (A) 3,28,150
Less:- Expenses
Total Rs.33,590
a) Cost of materials consumed (Purchases) 2,00,000
b) Changes in Inventories (Rs.50,000 – Rs.1,91,500) (1,41,500)
c) Employee Benefit Expenses 1 99,000
d) Depreciation & Amortization Expenses (Adjustment 2) 2 28,785
e) Other Expenses 3 33,590
Total Expenses (B) 2,19,875

Profit Before Tax (A – B) 1,08,275

Less:- Provision for Tax (Adjustment 3) 8,000
Profit for the period 1,00,275
Name of the company:- Moon & Star Limited Balance Sheet as on 31 st March 2017.

Particulars Note Amount

A. EQUITY and LIABILITIES
1 Shareholder’s Funds
a. Share Capital 1 2,45,000
b. Reserves & Surplus 2 1,16,795
2 Non Current Liabilities
a. Long Term Borrowings (Unsecured Loan ) 15,700
3. Current Liabilities
a. Trade Payables (Creditors) Reserves & Surplus 35,200
a. Reserves Share Capital
b. Other Current Liabilities
Authorized
Rs.25,000 (Interim Dividend Payable) (Adjustment 4)
Capital 14,700
b.5,000
c. Short Term Equity (Provision
Provisions
Profit shares of Rs.100
& Loss for tax)each
A/c (Credit (Adjustment Rs.5,00,000
Balance) 3)Rs.6,220 8,000
TOTAL Add:- Profit of the year Rs.1,00,275 4,35,395
Issued, Subscribed and called up
Less:- Interim Dividend
(Rs.2,45,000 × 6%) of Rs.100 each
2,500 Equity Shares Rs.14,700
Rs.2,50,000 Rs.91,795
Total
Less:- Calls in arrears Rs.5,000
Rs.1,16,795
Total Rs.2,45,000
Particulars Note Amount
B. ASSETS
1. Non Current Assets
a. Fixed Assets
Tangible Assets 3 1,68,815
2. Current Assets
a. Inventories (Closing Stock ) (Adjustment 1) 1,91,500
b. Trade Receivables (Debtors) 38,700
c. Cash & Cash Equivalents (Bank) 34,700
d. Short Term Loans & Advances (Prepaid Insurance) 1,680
TOTAL 4,35,395
Tangible Assets
a. Plant Rs.1,80,500
- Depreciation Rs.27,075 Rs.1,53,425

b. Furniture Rs.17,100
- Depreciation Rs.1,710 Rs.15,390

- Total Rs.1,68,815