[CBSE] Financial Statements of a Company Solutions TS Grewal (2024-25)
Solutions of Financial Statements of a Company chapter of Ts Grewal Class 12 CBSE Board 2024-25
Following are the solutions
Q. 1 What are the major heads in the Equity and Liabilities part of the Balance Sheet as per Schedule III?
Answer:-
Major Heads of the Equity and Liabilities part of the Balance Sheet as per Schedule III are.
- Shareholder’s Funds
- Application Money Pending Allotment
- Non-Current Liabilities
- Current Liabilities
Q. 2 Under which major head will the following be shown:
(i) Share Capital; and
(ii) Money Received Against Share Warrants?
Answer:-
(i) Major head of the share capital is Shareholder’s Funds.
(ii) Major head of the share capital also is Shareholder’s Funds.
Note:-
Share Warrants give the holder right to get Equity Shares on a specified date and at a specified value. Thus, Share Warrants will be converted into Equity Shares at a later date at a predetermined price. Sindh these are to be converted into Equity Shares, these are classified or shown as Shareholder’s Funds.
Q. 3 List any five items that are shown under Reserves and Surplus.
Answer:-
Following are the five items that are shown under Reserves and Surplus
- Capital Reserve
- Capital Redemption Reserve
- Debentures Redemption Reserve
- Securities Premium
- Surplus, i.e., Balance in Statement of Profit & Loss
Q. 4 Under which sub-head will the following be classified or shown:
(i) Long-term Borrowings;
(ii) Deferred Tax Liabilities (Net); and
(iii) Long-term Provisions?
Answer:-
Non-Current Liabilities
Q. 5 Name the items that are shown under Long-term Borrowings.
Answer:-
The following are shown under the head Long-term Borrowings.
- Debentures
- Bonds
- Long-term Loan from Bank
- Long-term Loans from others; Public Deposits
Q. 6 State giving reason whether Trade Receivables are classified as Current Assets or Non-Current Assets in the Balance Sheet of a Company as per Schedule III of the Companies Act, 2013 in the following cases:
| Case | Operating Cycle Period (Months) | Expected Realisation Period (Months) |
| 1 | 10 | 11 |
| 2 | 10 | 12 |
| 3 | 10 | 13 |
| 4 | 14 | 13 |
| 5 | 15 | 16 |
Solution:-
Case – 1 – Current Assets
Reason:- Assets realisable within the 12 months period are classified as current assets irrespective of the operating cycle period.
Case – 2 – Current Assets
Reason:- Assets realisable within the 12 months period are classified as current assets irrespective of the operating cycle period.
Case – 3 – Non-Current Assets
Reason:- Here Trade Receivables realised after 12 months and it is also realised after the operating cycle of the business.
Case – 4 – Current Assets
Reason:- Here However Trade Receivables realised in 13th months but it is less than the operating cycle of the business. The assets realised within the operating cycle of the business are classified as Current Assets
Case – 5 – Non-Current Assets
Reason:- Here Trade Receivables realised in 16th months but it is after the operating cycle of the business that is 15 months.
Q. 7 State giving reason whether Trade Payables are classified as Current Liabilities or Non-Current Liabilities in the Balance Sheet of a Company as per Schedule III of the Companies Act, 2013 in the following cases:
| Case | Operating Cycle Period (Months) | Expected Payment Period (Months) |
| 1 | 10 | 11 |
| 2 | 10 | 12 |
| 3 | 10 | 13 |
| 4 | 14 | 13 |
| 5 | 15 | 16 |
Answer:-
Case – 1 – Current Liabilities
Reason:- Liabilities to be paid off within the 12 months period are classified as current assets irrespective of the operating cycle period.
Case – 2 – Current Liabilities
Reason:- Liabilities to be paid off within the 12 months period are classified as current assets irrespective of the operating cycle period.
Case – 3 – Non-Current Liabilities
Reason:- Here Trade Payables to be paid after 12 months and it is also to be paid after the operating cycle of the business.
Case – 4 – Current Liabilities
Reason:- Here However Trade Payables is to be paid in 13th months but it is to be paid within the operating cycle of the business. The liabilities paid within the operating cycle of the business are classified as Current liabilities.
Case – 5 – Non-Current Liabilities
Reason:- Here Trade Payables is to be paid in 16th months but it is after the operating cycle of the business that is 15 months. Thus, Liabilities paid off after 12 months and also after the operating cycle of the business are termed as Non-Current Liabilities.
Q. 8 Under which head and how are the following items shown in the Balance Sheet of a company under Schedule III:
(i) Calls-in-Arreas;
(ii) Share Application Money Pending Allotment
(iii) Unpaid Dividend; and
(iv) Dividend not paid on Cumulative Preference Shares
Answer:-
(i) Calls-in-Arrers is shown under Shareholder’s Funds by way of deduction from ‘Subscribed but not fully paid-up’ under Subscribed Capital.
(ii) Share Application Money Pending Allotment is shown as a separate line item between Equity and Non-Current Liabilities.
(iii) Undpaid Dividend is shown as Other Current Liabilities under Current Liabilities
(iv) Dividend not paid on Cumulative Preference Shares is shown as Contingent Liabilities in the Notes to Accounts.
Q. 9 Under which main head and sub-head of Equity and Liabilities part of the Balance Sheet are the following items classified or shown:
(i) Bonds;
(ii) Debentures;
(iii) Public Deposits;
(iv) Capital Redemption Reserve;
(v) Forfeited Shares Account;
(vi) Sundry Creditors; and
(vii) Interest Accrued but Not Due on Debentures?
(viii) Interest Payable
Answer:-
(i) Bonds: – Sub Head (Long-term Borrowings), Main Head (Non-Current Liabilities
(ii) Debentures:- Sub Head (Long-term Borrowings), Main Head (Non-Current Liabilities
(iii) Public Deposits:- Sub Head (Long-term Borrowings), Main Head (Non-Current Liabilities
(iv) Capital Redemption Reserve:- Sub Head (Reserves and Surplus), Main Head (Shareholder’s Funds)
(v) Forfeited Shares Account:- It is shown under subscribed capital under the sub head Share Capital (Shown by way of addition to Subscribed capital) under the main head Shareholder’s Funds.
(vi) Sundry Creditors:- Sub Head (Trade Payables), Main Head (Current Liabilities
(vii) Interest Accrued but not Due on Debentures:- Sub Head (Other Current Liabilities), Main Head (Current Liabilities)
(viii) Interest Payable:- Sub Head (Other Current Liabilities), Main Head (Current Liabilities)
Q. 10 State any two items that are included in the following major heads under which liabilities of a company are shown:
(i) Reserves and Surplus;
(ii) Long-term Borrowings;
(iii) Short-term Borrowings
(iv) Other Current Liabilities
Answer:-
(i) Reserves and Surplus:- Capital Reserve, Capital Redemption Reserve
(ii) Long-term Borrowings:- Debentures; Term Loans from bank;
(iii) Short-term Borrowings:- Bank Overdraft; Cash credit from Bank;
(iv) Other Current Liabilities:- Undpaid Dividend; Current Maturities of Long-term Debts;
Q. 11 Classify the following items under major head and sub-head (if any) in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013:
(i) Capital work-in-Progress;
(ii) Provision for Warranties:
(iii) Income received in Advance; and
(iv) Capital Advances
Answer:-
| Head | Sub-Head | ||
| (i) | Capital work in Progress | Non-Current Assets | Property, Plant and Equipment and Intangible Assets |
| (ii) | Provision for Warranties | Non-Current Liabilities | Long-term Provisions |
| (iii) | Income received in Advance | Current Liabilities | Other Current Liabilities |
| (iv) | Capital Advances | Non-Current Assets | Capital Work in Progress |
Q. 12 Under which major heads and sub-heads will the following items be placed in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013?
(i) Debentures with maturity period in current financial year
(ii) Securities Premium
(iii) Provident Fund
Answer:-
| S.No | Item | Major Head | Sub-Head |
| (i) | Debentures with maturity period in current financial year | Current Liabilities | Other Current Liabilities |
| (ii) | Securities Premium | Shareholder’s Funds | Reserves and Surplus |
| (iii) | Provident Fund | Non-Current Liabilities | Long-term Provisions |
Q. 13. Under which heads the following items on the Assets part of the Balance Sheet of a company will be presented:
(i) Sundry Debtors;
(ii) Patents and Trademarks;
(iii) Shares in Quoted Companies;
(iv) Advances recoverable in cash;
(v) Prepaid Insurance;
(vi) Work-in-Progress
Solution:-
| Sub-Head | Main Head | ||
| (i) | Sundry Debtors | Trade Receivables | Current Assets |
| (ii) | Patents and Trademarks | Property, Plant and Equipment and Intangible Assets – Intangible Assets | Non-Current Assets |
| (iii) | Shares in Quoted Companies | Non-Current Investments | Non-Current Assets |
| (iv) | Advances recoverable in cash | Short-term Loans and Advances | Current Assets |
| (v) | Prepaid Insurance | Other Current Assets | Current Assets |
| (vi) | Work-in-Progress | Inventories | Current Assets |
Q. 14. Under which of the major heads will the following items be shown while preparing Balance Sheet of a company, as per Schedule III of the companies Act, 2013:
(i) 10% Debentures;
(ii) Stock-in-Trade;
(iii) Cash at Bank;
(iv) Bills Receivable;
(v) Goodwill;
(vi) Loose Tools;
(vii) Truck;
(viii) Provision for Tax
(ix) Sundry Creditors?
Solution:-
| Head | Sub-Head | ||
| (i) | 10% Debentures | Non-Current Liabilities | Long-term Borrowings |
| (ii) | Stock-in-Trade | Current Assets | Inventories |
| (iii) | Cash at Bank | Current Assets | Cash and Cash Equivalents |
| (iv) | Bills Receivable | Current Assets | Trade Receivables |
| (v) | Goodwill | Non-Current Assets | Property, Plant and Equipment and Intangible Assets-Intangible Assets |
| (vi) | Loose Tools | Current Assets | Inventories |
| (vii) | Truck | Non-Current Assets | Property, Plant and Equipment and Intangible Assets – Property, Plant and Equipment |
| (viii) | Provision for Tax | Current Liabilities | Short-term Provisions |
| (ix) | Sundry Creditors | Current Liabilities | Trade Payables |
Q. 15. Under which heads will the following items be shown in the Balance Sheet of a company:
(i) Bank Balance;
(ii) Investments (Long-term);
(iii) Outstanding Salary;
(iv) Subscribed and paid-up Capital;
(v) Bills Payable;
(vi) Unclaimed Dividends;
(viii) Shares Option Outstanding Account;
(viii) General Reserve
Solution:-
| Head | Sub-Head | ||
| 1 | Bank Balance | Current Assets | Cash and Cash Equivalents |
| 2 | Investments (Long-term) | Non-Current Assets | Non-Current Investments |
| 3 | Outstanding Salary | Current Liabilities | Other Current Liabilities |
| 4 | Subscribed and paid-up Capital | Shareholder’s Funds | Share Capital |
| 5 | Bills Payable | Current Liabilities | Trade Payables |
| 6 | Unclaimed Dividends | Current LIabilities | Other Current Liabilities |
| 7 | Shares Option Outstanding Account | Shareholder’s Funds | Reserves and Surplus |
| 8 | General Reserve | Shareholder’s Funds | Reserves and Surplus |
Q. 16. Under which major heads and sub-heads will the following items be presented in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013?
(i) Bank Overdraft
(ii) Subsidey Reserve
(iii) Capital Redemption Reserve
(iv) Mining Rights
(v) Patents
(vi) Debit balance in the Statement of Profit & Loss
(vii) Debenture Redemption Reserve
(viii) Provision for Taxation
Solution:-
| S.N | Item | Major head | Sub-Head |
| (i) | Bank Overdraft | Current Liabilities | Short-term Borrowings |
| (ii) | Subsidy Reserve | Shareholder’s Funds | Reserves and Surplus |
| (iii) | Capital Redemption Reserve | Shareholder’s Funds | Reserves and Surplus |
| (iv) | Mining Rights | Non-Current Assets | Property, Plant and Equipment and Intangible Assets-Intangible Assets |
| (v) | Patents | Non-Current Assets | Property, Plant and Equipment and Intangible Assets-Intangible Assets |
| (vi) | Debit Balance in the Statement of Profit & Loss | Shareholder’s Funds | Reserves and Surplus (as negative amount) |
| (vii) | Debenture Redemption Reserve | Shareholder’s Funds | Reserves and Surplus |
| (viii) | Provision for Taxation | Current Liabilities | Short-term Provisions |
Q. 17. Under which heads the following are shown in a Company’s Balance Sheet.
(i) Public Deposits;
(ii) Office Furniture;
(iii) Prepaid Rent;
(iv) Outstanding Salaries;
(v) Computer Software;
(vi) Interest Accrued in Investment
Solution:-
| Sub-Head | Head | ||
| 1 | Public Deposits | Long-term Borrowings | Non-Current Liabilities |
| 2 | Office Furniture | Property, Plant and Equipment and Intangible Assets – Property, Plant and Equipment | Non-Current Assets |
| 3 | Prepaid Rent | Other Current Assets | Current Assets |
| 4 | Outstanding Salaries | Other Current Liabilities | Current Liabilities |
| 5 | Computer Software | Property, Plant and Equipment and Intangible Assets – Intangible Assets | Non-Current Assets |
| 6 | Interest Accrued on Investment | Other Current Assets | Current Assets |
Q. 18. Under which major headings and sub-headings the following items will be shown in the Balance Sheet of a company as per Schedule III of Companies Act, 2013?
(i) Provision for Employee Benefits
(ii) Calls in Advance
Answer:-
| S.No | Item | Major head | Sub-head |
| 1 | Provision for Employee Benefits | Non-Current Liabilities | Long-term Provisions |
| 2 | Calls-in-Advance | Current Liabilities | Other Current Liabilities |
Q. 19. Under which sub-headings will the following items be placed in the Balance Sheet of a company as per Schedule III, part I of the Companies Act, 2013?
(i) Prepaid Expenses
(ii) Loose Tools
(iii) Loans Repayable on Demand
(iv) Provision for Employees Benefit
(v) Negative Balance in the Statement of Profit & Loss
(vi) Bank Overdraft
(vii) Bills Receivables
(viii) Trade Marks
Answer:-
| S.N | Items | Sub-Head |
| (i) | Prepaid Expenses | Other Current Assets |
| (ii) | Loose Tools | Inventories |
| (iii) | Loans repayable on Demand | Short-term Borrowigns |
| (iv) | Provision for Employees Benefit | Long-term Provisions |
| (v) | Negative balance in Statement of Profit & Loss | Reserves and Surplus (as negative amount) |
| (vi) | Bank Overdraft | Short-term Borrowings |
| (vii) | Bills Receivables | Trade Receivables |
| (viii) | Trade Marks | Property, Plant and Equipment and Intangible Assets – Intangible Assets |
Q. 20 How are the following items shown while preparing Balance sheet of a company:
(i) Surplus, i.e., Balance in Statement of Profit & Loss (Dr.)
(ii) Interest accrued and due on Debentures;
(iii) Computer Software under development;
(iv) Interest accrued on Investment;
Solution:-
| S.N | Items | Major Head | Sub-Head |
| (i) | Surplus, i.e., Balance in Statement of Profit & Loss (Dr.) | Shareholder’s Funds | Reserves and Surplus (As negative Amount) |
| (ii) | Interest accrued and due on Debentures | Current Liabilities | Other Current Liabilities |
| (iii) | Computer Software under development | Non-Current Assets | Property, Plant and Equipment and Intangible Assets – Intangible Assets Under Development |
| (iv) | Interest accrued on Investment | Current Assets | Other Current Assets |
Q. 21 Under which heads and sub-heads will be the following items shown in the Balance Sheet of a Company as per Schedule III, Part I of the Companies Act, 2013?
(i) Securities Premium
(ii) Interest accrued and due on secured loans
(iii) Cash and Bank balance
(iv) Interest accrued but not due
(v) Building
(vi) Mining Rights
(vii) Sundry Debtors
(viii) Sundry Creditors
(ix) Premium on Redemption of Debentures
(x) Provision for Tax
Answer:-
| S.N | Items | Major Head | Sub-Head |
| 1 | Securities Premium | Shareholder’s Funds | Reserves and Surplus |
| 2 | Interest accrued and due on secured loans | Current Liabilities | Other Current Liabilities |
| 3 | Cash and Bank balance | Current Assets | Cash and Cash Equivalents |
| 4 | Interest accrued but not due | Current Liabilities | Other Current Liabilities |
| 5 | Building | Non-Current Assets | Property, Plant and Equipment and Intangible Assets – Property, Plant and Equipment |
| 6 | Mining Rights | Non-Current Assets | Property, Plant and Equipment and Intangible Assets – Intangible Assets |
| 7 | Sundry Debtors | Current Assets | Trade Receivables |
| 8 | Sundry Creditors | Current Liabilities | Trade Payables |
| 9 | Premium on Redemption of Debentures | Non-Current Liabilities | Other Long-term Liabilities |
| 10 | Provision for Tax | Current Liabilities | Short-term Provisions |
Q. 22 Prepare Balance Sheet of Recovery Ltd. as per Schedule III of the Companies Act, 2013:
10% Debentures of ₹ 100 each
Stock in Trade (Inventories)
Goodwill
Provision for Tax
Totalling of Balance Sheet is not required
Answer:-
Recovery Ltd. Balance Sheet as at 31st March
| Particulars | Note. No. | 31st March |
| I. EQUITY AND LIABILITIES | ||
| 1. Non-Current Liabilities (a) Long-term Borrowings | 1. | 1,90,000 |
| 2. Current Liabilities (a) Short-term Provisions | 2. | 6,000 |
| Total | ||
| II. ASSETS | ||
| 1. Non-Current Assets (a) Property, Plant and Equipment and Intangible Assets: (i) Intangible Assets | 3 | 20,000 |
| 2. Current Assets (a) Inventories | 4 | 40,000 |
| Total |
Notes to Accounts
| 1. | Long-term Borrowings 10% Debentures of ₹ 100 each | 1,90,000 |
| 2. | Short-term Provisions Provision for Tax | 6,000 |
| 3. | Intangible Assets Goodwill | 20,000 |
| 4. | Inventories Stock-in-trade | 40,000 |
Q. 23. Prepare Balance Sheet of VT Ltd. as at 31st March, 2023, from the following information as per Schedule III, Part I of the Companies Act, 2013:
| Items | ₹ |
| General Reserve | 3,000 |
| 8% Debentures | 3,000 |
| Surplus, i.e., Balance in Statement of Profit & Loss (Credit) | 1,200 |
| Depreciation | 700 |
| Property, Plant and Equipment (Cost) | 9,000 |
| Other Current Liabilities | 2,500 |
| Share Capital | 5,000 |
| Other Current Assets | 6,400 |
Answer:-
| Particulars | Note. No. | 31st March |
| I. EQUITY AND LIABILITIES | ||
| 1. Shareholder’s Funds (a) Share Capital (b) Reserves and Surplus | 1 | 5,000 4,200 |
| 2. Non-Current Liabilities (a) Long-term Borrowings | 2 | 3,000 |
| 3. Current Liabilities (a) Other Current Liabilities | 2,500 | |
| Total | ||
| II. ASSETS | ||
| 1. Non-Current Assets (a) Property, Plant and Equipment and Intangible Assets: (i) Property, Plant and Equipment | 3 | 8,300 |
| 2. Current Assets (a) Other Current Assets | 4 | 6,400 |
| Total |
Notes to Accounts
| 1. | Reserves and Surplus (a) General Reserve (b) Surplus,i.e., Balance in Statement of Profit & Loss (Credit) | 3,000 1,200 |
| 2. | Long-term Borrowings 8% Debentures | 3,000 |
| 3. | Property, Plant and Equipment Less: Depreciation | 9,000 700 |
| 8,300 |
Q. 24 From the following information extracted from the books of Howrach Ltd., prepare Balance sheet of the company as at 31st March, 2023 as per Schedule III of the Companies Act, 2013:
| Items | ₹ |
| Long-term Borrowings | 1,000 |
| Trade Payables | 60 |
| Share Capital | 800 |
| Reserves and Surplus | 180 |
| Property, Plant and Equipment | 1,600 |
| Inventories | 40 |
| Trade Receivables | 160 |
| Cash and Cash Equivalents | 240 |
[Ans.: Total of Balance Sheet – ₹ 20,40,000.]
Answer:-
| Particulars | Note. No. | 31st March |
| I. EQUITY AND LIABILITIES | ||
| 1. Shareholder’s Funds (a) Share Capital (b) Reserves and Surplus | 1 | 800000 180000 |
| 2. Non-Current Liabilities (a) Long-term Borrowings | 2 | 1,000000 |
| 3. Current Liabilities (a) Trade Payables | 60000 | |
| Total | 20,40,000 | |
| II. ASSETS | ||
| 1. Non-Current Assets (a) Property, Plant and Equipment and Intangible Assets: (i) Property, Plant and Equipment | 1,600000 | |
| 2. Current Assets (a) Inventories (b) Trade Receivables (c) Cash and Cash Equivalents | 40000 160000 240000 | |
| Total | 20,40,000 |
Q. 25. Prepare Balance Sheet of HP Ltd. as at 31st March, 2023 from the following information:
| Items | ₹ |
| Equity Share Capital | 20,00,000 |
| 12% Preference Share Capital | 10,00,000 |
| Property, Plant and Equipment | 46,60,000 |
| Accumulated Depreciation | 16,60,000 |
| Investments | 4,00,000 |
| Current Liabilities | 8,00,000 |
| 12% Debentures | 6,00,000 |
| workmen Compensation Reserve | 1,00,000 |
| Surplus, i.e., Balance in Statement of Profit & Loss (Cr.) | 3,00,000 |
| Stock | 6,00,000 |
| Sundry Debtors | 8,00,000 |
| Cash | 1,50,000 |
| Loans and Advances | 50,000 |
| Provision for Taxation | 2,00,000 |
[Ans. Total of Balance Sheet – ₹ 50,00,000.]
Answer:-
| Particulars | Note. No. | 31st March |
| I. EQUITY AND LIABILITIES | ||
| 1. Shareholder’s Funds (a) Share Capital (b) Reserves and Surplus | 1 2 | 30,00,000 4,00,000 |
| 2. Non-Current Liabilities (a) Long-term Borrowings | 3 | 6,00,000 |
| 3. Current Liabilities (a) Other Current Liabilities (b) Short-term Provisions | 4 | 8,00,000 2,00,000 |
| Total | 50,00,000 | |
| II. ASSETS | ||
| 1. Non-Current Assets (a) Property, Plant and Equipment and Intangible Assets: (i) Property, Plant and Equipment (b) Non-Current Investments | 5 | 30,00,000 4,00,000 |
| 2. Current Assets (a) Inventories (b) Trade Receivables (c) Short-term Loans and Advances (d) Cash and Cash Equivalents | 6 7 | 6,00,000 8,00,000 50,000 1,50,000 |
| Total | 50,00,000 |
Notes to Accounts
| 1. | Share Capital Equity Share Capital 12% Preference Share Capital | 20,00,000 10,00,000 |
| 2. | Reserves and Surplus (a) Workmen Compensation Reserve (b) Surplus,i.e., Balance in Statement of Profit & Loss (Cr.) | 1,00,000 3,00,000 |
| 3. | Long-term Borrowings 12% Debentures | 6,00,000 |
| 4. | Short-term Provisions Provision for Taxation | 2,00,000 |
| 5. | Property, Plant and Equipment Less: Accumulated Depreciation | 46,60,000 16,60,000 |
| 30,00,000 | ||
| 6. | Inventories Stock | 6,00,000 |
| 7 | Trade Receivables Sundry Debtors | 8,00,000 |
Q. 26. Under which head following revenue items of a non-financial company will be classified or shown:
(i) Sales;
(ii) Revenue from Services Rendered;
(iii) Sale of Scrap;
(iv) Interest Earned on Loans;
(v) Gain (Profit) on Sale of Investments
Answer:-
| Items | Head |
| (1) Sales (2) Revenue from Services Rendered (3) Sale of Scrap | Revenue from Operations |
| (4) Interest Earned on Loans (5) Gain (Profit) on Sale of Investments | Other Income |
Q. 27. Calculate Cost of Materials Consumed from the following:
Opening Inventory of Materials ₹ 5,00,000; Purchase of Materials ₹ 25,00,000; and Closing Inventory of Materials ₹ 4,00,000.
[Ans.: ₹ 26,00,000.]
Answer:-
Cost of Material Consumed = Opening Inventory + Purchase of Materials – Closing Inventory of Materials
Cost of Material Consumed = ₹ 5,00,000 + ₹ 25,00,000 – ₹ 4,00,000
Cost of Material Consumed = ₹ 26,00,000
Q. 28. Calculate Cost of Materials Consumed from the following:
Opening Inventory: Materials ₹ 3,50,000; Finished Goods ₹ 75,000; Stock-in-Trade ₹ 2,00,000; Closing Inventory: Materials ₹ 3,25,000; Finished Goods ₹ 85,000; Stock-in-Trade ₹ 1,50,000; Purchases during the year; Raw Material ₹ 17,50,000; Stock-in-Trade ₹ 9,00,000.
[Ans. ₹ 17,75,000.]
Solution:-
Cost of Materials Consumed = Opening Inventory of Materials + Purchase of Raw Material – Closing Inventory of Materials
Cost of Materials Consumed = ₹ 3,50,000 + ₹ 17,50,000 – ₹ 3,25,000
Cost of Materials Consumed = ₹ 17,75,000
Q. 29. From the following information of Hospitality Ltd. for the year ended 31st March, 2022, calculate amount that will be shown in the Note to Accounts on Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade:
| Particulars | Opening Inventory (₹) | Closing Inventory (₹) |
| Finished Goods | 5,00,000 | 5,50,000 |
| Work-in-Progress | 4,50,000 | 4,25,000 |
| Stock-in-Trade | 6,50,000 | 6,00,000 |
[Ans.: Change in inventories of: Finished Goods – (₹ 50,000); work-in-Progress – ₹ 25,000 and Stock-in-Trade – ₹ 50,000; Net Change – ₹ 25,000.]
Answer:-
Notes to Accounts:
| Particulars | ₹ | Year ended 31st March |
| Change in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade | ||
| (a) Finished Goods Opening Inventory Less: Closing Inventory | 5,00,000 5,50,000 | (50,000) |
| (b) Work-in-Progress Opening Inventory Less: Closing Inventory | 4,50,000 4,25,000 | 25,000 |
| (c) Stock-in-Trade Opening Inventory Less: Closing Inventory | 6,50,000 6,00,000 | 50,000 |
| Total (a + b + c) | 25,000 |
₹ 25,000 will be shown in the Statement of Profit & Loss against Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade.
Q. 30. From the following information of Best Marketing Ltd. for the year ended 31st March, 2022 Prepare Note to Accounts on Depreciation and Amortisation Expenses:
Depreciation on: Building ₹ 15,500; Plant and Machinery ₹ 25,000; computers ₹ 60,000; Goodwill Written off ₹ 7,500; Patents written off ₹ 12,500.
[Ans.: Depreciation – ₹ 1,00,500; Amortisation – ₹ 20,000; Total – ₹ 1,20,500.]
Solution:-
Notes to Accounts
| Note. No. | Particulars | ₹ | |
| 1 | Depreciation and Amortisation Expenses | ||
| Depreciation | |||
| Building | 15,500 | ||
| Plant & Machinery | 25,000 | ||
| Computers | 60,000 | 1,00,500 | |
| Amortisation | |||
| Goodwill Written Off | 7,500 | ||
| Patents Written Off | 12,500 | 20,000 | |
| Amount to be shown in the Statement of Profit & Loss | 1,20,500 |
Q. 31. From the following information, compute the amount to be shown in Note to Accounts on Employees Benefit Expenses: Wages ₹ 5,40,000; Salaries ₹ 7,20,000; Bonus ₹ 1,05,000; Staff Welfare Expenses ₹ 60,000; and Business Promotion Expenses ₹ 50,000.
[Ans.: Employees Benefit Expenses – ₹ 14,25,000.]
Solution:-
Notes to Accounts
| Note. No. | Particulars | ₹ |
| Employees Benefit Expenses | ||
| Wages Salaries Bonus Staff Welfare Expenses | 5,40,000 7,20,000 1,05,000 60,000 | |
| Amount to be shown in Income Statement under Employees Benefit Expenses | 14,25,000 |
From the following information, prepare Note to Accounts on Employees Benefit Expenses:
Q. 32. Wages ₹ 2,70,000; Salaries ₹ 3,60,000; Staff Welfare Expenses ₹ 60,000; Printing and Stationery Expenses ₹ 20,000 and Business Promotion Expenses ₹ 50,000.
[Ans.: Employees Benefit Expenses – ₹ 6,90,000.]
Solution:-
| Note. No. | Particulars | ₹ |
| Employees Benefit Expenses | ||
| Wages Salaries Staff Welfare Expenses | 2,70,000 3,60,000 60,000 | |
| Amount to be shown in Income Statement under Employees Benefit Expenses | 6,90,000 |
