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T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 1 - Financial Statements of a Company

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Exercise/Page

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 1 - Financial Statements of a Company Page/Excercise 1.64

Solution Ex. 1

The major heads in the Equity and Liabilities part of Balance sheet are:

 i. Shareholder's Funds

 ii. Share Application Money Pending Allotment

 iii. Non-Current Liabilities and

 iv. Current Liabilities

 

Balance Sheet

as at____________

Particulars

Note

No.

Rs. 

I. Equity and Liabilities

 

 

1. Shareholders'' Funds

 

 

a. Share Capital

 

 

b. Reserves and Surplus

 

 

c. Money Received against share Warrants

 

 

2. Share Application Money Pending Allotment

 

 

3. Non- Current Liabilities

 

 

a. Long-Term Borrowings

 

 

b. Deferred Tax Liabilities (Net)

 

 

c. Other Long-Term Liabilities

 

 

d. Long Term Provisions

 

 

4. Current Liabilities

 

 

a. Short -Term Borrowings

 

 

b. Trade Payables

 

 

c. Other Current Liabilities

 

 

d. Short -Term Provisions

 

 

Total

 

 

 

 

Solution Ex. 2

 

Items

Major Head 

Share Capital

Shareholders' Funds

Money received against share warrants

Shareholder's Funds

 

 

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 1 - Financial Statements of a Company Page/Excercise 1.65

Solution Ex. 3

 

Items shown under reserves and surplus are:

 i. Capital Reserve,

 ii. Capital Redemption Reserve,

 iii. Securities Premium Reserve,

 iv. Debenture Redemption Reserve,

 v. Revaluation Reserve etc.

 

Solution Ex. 4

 

Items

Sub-Head

Long-Term Borrowings

Non-Current Liabilities

Deferred Tax Liabilities (Net)

Non-Current Liabilities

Long-Term Provisions

Non-Current Liabilities

 

 

Solution Ex. 5

Items shown under Long-term Borrowings are:

a. Debentures.

b. Bonds.

c. Terms Loans (both from Banks and from others).

d. Public Deposits,

e. Other Loans and Advances.

Solution Ex. 6

 

Extract of Balance Sheet

as on____________

Particulars

Note

No.

Rs. 

I. Equity and Liabilities

 

 

1. Shareholders' Funds

 

 

a. Share Capital

 

 

b. Reserves and Surplus

1

1,75,000

 

 

 

Total

 

 

 

 

NOTE TO ACCOUNTS

 

NOTE

No.

Particulars

 

Rs. 

1

Reserves and Surplus

 

 

 

a. Surplus, i. e. Balance in statement of Profit and Loss

1,00,000

 

 

Add: Profit for the year

75,000

 

 

Less: Appropriations

 

 

 

--------Transfer to Debenture Redemption Reserve

(15,000)

 

 

--------Proposed Dividend

(25,000)

1,35,000

 

a. Debenture Redemption Reserve

 

 

 

Transferred from surplus i.e. Balance in Statement of Profit and Loss

 

15,000

 

Total (a+b) [to be Shown in Balance Sheet against Reserves and Surplus]

 

1,50,000

 

Contingent Liability

 

 

 

Proposed Dividend

 

25,000

 

Solution Ex. 7

As per Companies Act, 2013, "Current Assets are those assets which are:

(i) Expected to be realized in or intended for sale or consumption in the company's normal operating cycle, or

(ii) Expected to be realized within 12 months from the reporting date"

Case

Operating Cycle (Months)

Expected Realisation Period (Months)

Classified as

(i)

10

11

Current Assets

(ii)

10

12

Current Assets

(iii)

10

13

Non-Current Assets

(iv)

14

13

Current Assets

(v)

15

16

Non-Current Assets

 

Solution Ex. 8

As per Companies Act, 2013, "Current Liabilities are those liabilities which are:

(i) Expected to be settled in company's normal operating cycle, or

(ii) Due to be settled within 12 months after the reporting date"

Case

Operating Cycle (Months)

Expected Realisation Period (Months)

Classified as

(i)

10

11

Current Liabilities

(ii)

10

12

Current Liabilities

(iii)

10

13

Non-Current Liabilities

(iv)

14

13

Current Liabilities

(v)

15

16

Non-Current Liabilities

 

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 1 - Financial Statements of a Company Page/Excercise 1.66

Solution Ex. 9

 

Items

Head

Disclosure

Calls-in-Arrears

Shareholder's Funds

It is shown as a deduction from Subscribed Capital shown as 'Subscribed but not fully paid' under Shareholder's Funds

Share Application Money Pending Allotment

Share Application Money Pending Allotment

It is shown as a separate line item

Unpaid Dividend

Current Liabilities

It is shown as 'Other Current

Liability' under Current Liabilities

Dividend not paid on Cumulative Preference Shares

Contingent Liabilities and Commitments

It is shown as Contingent Liabilities and Commitments in Notes to Accounts

 

 

Solution Ex. 10

 

Items

Main Head

Sub-head

Bonds

Non-Current Liabilities

Long Term Borrowings

Debentures

Non-Current Liabilities

Long Term Borrowings

Public Deposits

Non-Current Liabilities

Long Term Borrowings

Capital redemption Reserve

Shareholder's Funds

Reserves and Surplus

Share Forfeiture Reserve

Shareholder's Funds

Subscribed Capital under share capital

Sundry Creditors

Current Liabilities

Trade Payable

Interest Accrued but not due on Debentures

Current Liabilities

Other Current Liabilities

 

Solution Ex. 11

 

Major Head

Items

Reserves and Surplus

Capital Reserve, Revaluation Reserve

Long-term Borrowings

Debentures, Term Loans form Bank and Others

Short - term Borrowings

Cash credit from bank, Loans repayable on demand

Other Current Liabilities

Income received in advance, Unpaid Dividends

 

Solution Ex. 12

Particulars

Head

Sub- Head

(i) Capital Work-in-Progress

Non-Current Assets

Fixed Assets

(ii) Provision for Warranties

Non-Current Liabilities

Long-term Provision

(iii) Income received in Advance

Current Liabilities

Other Current Liabilities

(iv) Capital Advances

Non-Current Assets

Long-term Loans and Advance

 

Solution Ex. 13

 

Items

Main Head

Sub-head

Intangible Assets

Non-Current Assets

Fixed Assets

Intangible Assets under development

Non-Current Assets

Fixed Assets

Investments (more than 12 months)

Non-Current Assets

Non-Current Investments

Deferred Tax Assets (Net)

Non-Current Assets

Deferred Tax Assets (Net)

Stores and Spares

Current Assets

Inventories

Loose Tools

Current Assets

Inventories

 

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 1 - Financial Statements of a Company Page/Excercise 1.67

Solution Ex. 14

 

Items

Main Head

Sub-head

Loose Tools

Current Assets

Inventories

Bills Receivable

Current Assets

Trade Receivables

Sundry Debtors

Current Assets

Trade Receivables

Advance Recoverable in Cash

Current Assets

Short-term Loans and Advance

 

Solution Ex. 15

 

Items

Main Head

Sub-head

Sundry Debtors

Current Assets

Trade Receivables

Patents and Trade Marks

Non-Current Assets

Fixed Assets (Intangible Assets)

Share in Quoted Companies

Non-Current Assets

Non-Current Investments

Bills Receivable

Current Assets

Trade Receivables

Advance Recoverable in Cash

Current Assets

Short- Term Loans and Advances

Prepaid Insurance

Current Assets

Other Current Assets

Work- in- Progress

Non-Current Assets

Fixed Assets (Capital Work-in-progress)

 

 

Solution Ex. 16

 

Items

Main Head

Sub-head

Unamortised Loss on Issue of Debentures (To be written off after 12 months from date of Balance Sheet)

Non-Current Assets

Other Non-Current Assets

10% Debentures

Non-Current Liabilities

Long-term Borrowings

Stock - in-Trade

Current Assets

Inventories

Cash at Bank

Current Assets

Cash and Cash equivalents

Bills Receivable

Current Assets

Trade Receivables

Goodwill

Non-Current Assets

Fixed Assets (Intangible Assets)

Loose Tools

Current Assets

Inventories

Truck

Non-Current Assets

Fixed Assets (Tangible Assets)

Provision for Tax

Current Liabilities

Short Term Provisions

Sundry Creditors

Current Liabilities

Trade Payables

 

 

Solution Ex. 17

 

S. No.

Items

Main 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

Authorised Capital

Shareholder's Fund

Share Capital

5

Bills Payable

Current Liabilities

Trade Payables

6

Unclaimed Dividends

Current Liabilities

Other Current Liabilities

7

Share Option Outstanding Account

Shareholder's Fund

Reserves and Surplus

8

General Reserve

Shareholder's Fund

Reserves and Surplus

9

Subsidy Reserve

Shareholder's Fund

Reserves and Surplus

 

Solution Ex. 18

 

S. No.

Items

Main Head

Sub-head

1

Calls-in-Arrears

Shareholder's Fund

Share Capital (i.e. as a deduction from subscribed share capital)

2

Commission Received in Advance

Current Liabilities

Other Current Liabilities

3

Debentures

Non-Current Liabilities

Long- Term Borrowings

4

Stores and Spare Parts

Current Assets

Inventories 

5

Land and Building

Non-Current Assets

Fixed Assets (Tangible Assets

6

Forfeited Shares Account

Shareholder's Fund

Share Capital (i.e. as a addition to subscribed share capital)

7

Government Securities

Non-Current Assets

Non-Current Investments

8

Uncalled Liability on partly paid shares

Commitments in Notes to Accounts

Commitments in Notes to Accounts

 

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 1 - Financial Statements of a Company Page/Excercise 1.68

Solution Ex. 19

 

S. No.

Items

Main Head

Sub-head

 1

Public Deposits

Non-Current Liabilities

Long-Term Borrowings

 2

Office Furniture

Non-Current Assets

Fixed Assets (Tangible Assets)

 3

Prepaid Rent

Current Assets

Other Current Assets

 4

Outstanding Salaries

Current Liabilities

Other Current Liabilities

5

Computer Software

Non-Current Assets

Fixed Assets (Intangible Assets)

6

Interest Accrued on Investment

It is shown as a Contingent

Other Current Assets

7

Bills Discounted but not Matured

Liability in the Notes to Accounts

It is shown as Contingent Liability in the Notes to Accounts

 8

Live Stock

Non-Current Assets

Fixed Assets (Tangible Assets)

 

Solution Ex. 20

 

S. No.

Items

Major Head

 i.  

Loose Tools

Current Assets

 ii.  

Unpaid Dividend

Current Liabilities

 iii.  

Copyrights and Patents

Non-Current Assets

 iv.  

Land and Building

Non-Current Assets

 

Solution Ex. 21

 

S. No.

Items

Major Head

        (i)

Provision for Tax

Current Liabilities

(ii)

Loan payable on Demand

Current Liabilities

(iii)

Computer and Related Equipment

Non-Current Assets

(iv)

Goods acquired for Trading

Current Assets

 

Solution Ex. 22

 

S. No.

Items

Main Head

Sub-head

 i.  

Surplus i.e. Balance in Statement of Profit and Loss (Dr.)

Shareholder's Funds

Reserves and Surplus (as negative figure)

 ii.

Interest accrued and due on debentures

Current Liabilities

Other Current Liabilities

 iii.

Computer Software under development

Non-Current Assets

Fixed Assets (Intangible Assets under development)

         iv.

Interest accrued on Investments

Current Assets

Other Current Assets

 

Solution Ex. 23

 

Extract of Balance Sheet

as on March 31, 2018 

Particulars

 

Note

No.

Rs. 

2. Non-Current Liabilities

 

 

 

Long-term Borrowings

 

 

 

11% Loan from SBI

20,00,000

 

 

7,500, 10% Debentures of Rs 100 each

7,50,000

 

27,50,000

3. Current Liabilities

 

 

 

Other Current Liabilities

 

 

 

Current Maturity of Long-term Debts (2,500 Debentures of Rs. 100 each maturing within 12 months)

2,50,000

 

 

Interest accrued and Due on Debentures

1,00,000

 

 

Interest accrued and Due on Loan

2,20,000

 

5,70,000

Total

 

 

33,20,000

 

 

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 1 - Financial Statements of a Company Page/Excercise 1.69

Solution Ex. 24

 

Balance Sheet

as on____________

Particulars

Note

No.

Rs. 

I. Equity and Liabilities

 

 

1. Shareholders' Funds

 

 

2. Non- Current Liabilities

 

 

Long-Term Borrowings

1

1,90,000

3. Current Liabilities

2

6,000

Short -Term Borrowings

 

 

Total

 

 

II. Assets

 

 

1. Non- Current Assets

 

 

Intangible (Fixed Assets)

3

20,000

2. Current Assets

 

 

Inventories

4

40,000

Total

 

 

 

 

 

 

NOTES TO ACCOUNTS

Note No. 

Particulars 

Rs. 

1

Long - Term Borrowings 

------10% Debentures

1,90,000

2

Short-term Provisions

------Provision for Tax

6,000

3

Intangible (Fixed Assets) 

 

 

------Goodwill

20,000

4

Inventories

 

 

------Stock- in-Trade

40,000

 

 

Solution Ex. 25

 

 

Balance Sheet

as at March 31, 2018

Particulars

Note

No.

Rs. 

I. Equity and Liabilities

 

 

1. Shareholders' Funds

 

 

a. Share Capital

1

5,000

b. Reserves and Surplus

2

4,200

2. Non-Current Liabilities

 

 

Long Term Borrowings

3

3,000

3. Non-Current Liabilities

 

 

Other Current Liabilities

 

2,500

Total

 

14,700

II. Assets

 

 

1.  Non- Current Assets

 

 

Fixed Assets (Tangible Assets )

4

8,300

2. Current Assets

 

 

Other Current Assets

 

6,400

Total

 

14,700

 

NOTES TO ACCOUNTS:

Note No. 

Particulars 

 

 

Rs. 

1

Share Capital 

 

------Share Capital

 

5,000

2

Reserves and Surplus

 

------General Reserve

 

3,000

------Balance in Statement of Profit and Loss (Credit) 

 

1,200

 

 

 

4,200

3

Long-Term Borrowings) 

 

 

 

------8% Debentures

 

3,000

4

Fixed Assets

 

 

 

------Tangible Assets (Cost)

9,000

 

 

------Depreciation (Cost) 

(700)

8,300

 

 

 

 

 

 

Solution Ex. 26

 

Balance Sheet

as on March 31, 2018

Particulars

Note

No.

Rs.

(in '000)

I. Equity and Liabilities

 

 

1. Shareholders' Funds

 

 

a. Share Capital

 

8,00

b. Reserves and Surplus

 

180

2. Non-Current Liabilities

 

 

Long Term Borrowings

 

1,000

3. Non-Current Liabilities

 

 

Trade Payable

 

60

Total

 

2,040

II. Assets

 

 

1. Non- Current Assets

 

 

Fixed Assets (Tangible Assets )

 

1,600

2. Current Assets

 

 

Inventories

 

40

Trade Receivables

 

160

Cash and Cash Equivalents

 

240

Total

 

2,040

 

Solution Ex. 27

 

Balance Sheet

as on March 31, 2016

Particulars

Note

No.

Rs. 

I. Equity and Liabilities

 

 

1. Shareholders' Funds

 

 

a. Share Capital

1

30,00,000

b. Reserves and Surplus

2

4,00,000

2. Non-Current Liabilities

 

 

a. Long Term Borrowings

3

6,00,000

3. Current Liabilities

 

 

a. Other Current Liabilities

4

8.00,000

b. Short Term Provisions

5

2,00,000

Total

 

50,00,000

II. Assets

 

 

1. Non- Current Assets

 

 

a. Fixed Assets

 

 

 i. Tangible Assets

6

30,00,000

b. Non- Current Investments

7

4,00,000

2. Current Assets

 

 

a. Inventories

8

6,00,000

b. Trade Receivables

9

8,00,000

c. Cash and Cash Equivalents

10

1,50,000

d. Short -Term Loans and Advances

11

50,000

Total

 

50,00,000

 

NOTES TO ACCOUNTS

Note No. 

Particulars 

 

Rs. 

1

Share Capital 

 

------Equity Share Capital

 

20,00,000

-----112% Preference Share Capital 

 

10,00,000

 

30,00,000

2

Reserves and Surplus

 

------Workmen Compensation Reserve

 

1,00,000

------Balance in Statement of Profit and Loss (Credit) 

 

3,00,000

 

4,00,000

3

Long-term Borrowings 

 

 

 

------112% Debentures

 

6,00,000

 

 

 

 

4

Other Current Liabilities

 

 

 

------ Current Liabilities

 

8,00,000

 

 

 

 

5

Short-term Provisions

 

 

 

------Provision for Taxation

 

2,00,000

 

 

 

 

6

Tangible Assets

 

 

 

------Fixed Assets (Cost)

46,60,000

 

 

------Depreciation  

(16,60,000)

30,00,000

 

 

 

 

7

Non - Current Investments

 

 

 

------Investments

 

4,00,000

 

 

 

 

8

Inventories

 

 

 

------Stock

 

6,00,000

 

 

 

 

9

Trade Receivables

 

 

 

------Sundry Debtors

 

8,00,000

 

 

 

 

10

Cash and Cash Equivalents

 

 

 

------Cash

 

1,50,000

 

 

 

 

11

Short-term Loans and Advances

 

 

 

------Loans and Advances

 

50,000

 

 

 

 

 

 

Solution Ex. 28

 

Items

Head

Sales

Revenue from Operations

Revenue from services rendered

Revenue from Operations

Sales of scrap

Revenue from Operations

Interest earned or Loans

Other Income

Profit on Sale of Investment

Other Income

 

 

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 1 - Financial Statements of a Company Page/Excercise 1.70

Solution Ex. 29

 

Items

Head

Profit on Sale of Building

Other Income

Revenue from Project Consultancy Rendered

Other Income

Sales of scrap

Other Income

Interest earned or Loans

Revenue from Operations

Profit on Sale of Investment

Revenue from Operations

 

 

Solution Ex. 30

 

Items

Head

Profit on Sale of Fixed Assets

Other Income

Fee Received for Arranging Loans

Revenue from Operations

Interest on Loans Given

Revenue from Operations

Profit on Sale of Investments

Revenue from Operations

Sale of a Miscellaneous item

Other Income

 

 

Solution Ex. 31

 

Items

Head

Profit on Sale of Fixed Assets

Other Income

Fee Received for Arranging Loans

Other Income

Interest on Loans Given

Other Income

Profit on Sale of Investments

Other Income

Sale of a Miscellaneous item

Other Income

 

 

Solution Ex. 32

 

 

Solution Ex. 33

 

 

Note:

Opening Inventory and Closing Inventory of Finished Goods are not to be considered as these are shown under changes in Inventory of Finished Goods.

 

Solution Ex. 34

 

 

Note:

Opening Inventory and Closing Inventory of Finished Goods will not be considered as these are shown under changes in Inventory of Finished Goods. Also, opening, Closing and Purchases of Stock-in-Trade is not considered as they are not considered as a part of cost of materials consumed.

Solution Ex. 35

 

NOTES OF ACCOUNTS

Note No. 

Particulars 

 

Rs. 

(a)

Finished Goods 

 

------Opening Inventory

2,00,000

 

------Less: Closing Inventory 

(1,75,000)

25,000

 

 

 

25,000

 

Rs.25,000 will be shown in the Statement of Profit and Loss against Changes in Inventories of Finished Goods.

 

Solution Ex. 36

 

Note No. 

Particulars 

 

Rs. 

(a)

Finished Goods 

 

------Opening Inventory

2,50,000

 

------Less: Closing Inventory 

(2,00,000)

50,000

 

 

 

50,000

 

Rs.50,000 will be shown in the Statement of Profit and Loss against Changes in Inventories of Finished Goods.

 

Solution Ex. 37

 

NOTES OF ACCOUNTS

Note No. 

Particulars 

 

Rs. 

(a)

Work-in-Progress 

 

------Opening Inventory

1,00,000

 

------Less: Closing Inventory 

(1,15,000)

(15,000)

 

 

 

(15,000)

 

(Rs.15,000) will be shown in the Statement of Profit and Loss against Changes in Inventories of Work-in-Progress

 

Solution Ex. 38

 

NOTES OF ACCOUNTS

Note No. 

Particulars 

 

Rs. 

(a)

Work-in-Progress 

 

------Opening Inventory

1,50,000

 

------Less: Closing Inventory 

(1,45,000)

5,000

 

 

 

5000

 

Rs.5,000 will be shown in the Statement of Profit and Loss against Changes in Inventories of Work-in-Progress

 

Solution Ex. 39

 

NOTES OF ACCOUNTS

Note No. 

Particulars 

 

Rs. 

(a)

Stock-in-Trade 

 

------Opening Inventory

5,00,000

 

------Less: Closing Inventory 

(4,50,000)

50,000

 

 

 

50,000

 

Rs.50,000 will be shown in the Statement of Profit and Loss against Changes in Inventories of Stock-in-Trade

Solution Ex. 40

 

NOTES OF ACCOUNTS

Note No. 

Particulars 

 

Rs. 

(a)

Stock-in-Trade 

 

------Opening Inventory

5,00,000

 

------Less: Closing Inventory 

(4,00,000)

1,00,000

 

 

 

1,00,000

 

Rs.1,00,000 will be shown in the Statement of Profit and Loss against Changes in Inventories of Stock-in-Trade

 

T. S. Grewal Solution for Class 12 Commerce Accountancy Chapter 1 - Financial Statements of a Company Page/Excercise 1.71

Solution Ex. 41

 

NOTES OF ACCOUNTS

Note No. 

Particulars 

 

Rs. 

Change in Inventories of Finished Goods, WIP and Stock-in-Trade

 

(a)

Finished Goods 

 

------Opening Inventory

5,00,000

 

------Less: Closing Inventory 

(5,50,000)

(50,000)

 

 

 

(50,000)

(b)

Work-in-Progress 

 

 

 

------Opening Inventory

4,45,000

 

 

------Less: Closing Inventory 

(4,25,000)

25,000

 

 

 

25,000

(c)

Stock-in-Trade 

 

 

 

------Opening Inventory

6,50,000

 

 

------Less: Closing Inventory 

(6,00,000)

50,000

 

 

 

50,000

 

Net Charge (a+b+c)

 

25,000

 

Rs.25,000 will be shown in the Statement of Profit and Loss against Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade

 

Solution Ex. 42

 

NOTES OF ACCOUNTS

Note No. 

Particulars 

 

Rs. 

Change in Inventories of Finished Goods, WIP and Stock-in-Trade

 

(a)

Finished Goods 

 

------Opening Inventory

15,00,000

 

------Less: Closing Inventory 

(12,50,000)

2,50,000

 

 

 

2,50,000

(b)

Work-in-Progress 

 

 

 

------Opening Inventory

10,50,000

 

 

------Less: Closing Inventory 

(9,25,000)

1,25,000

 

 

 

1,25,000

(c)

Stock-in-Trade 

 

 

 

------Opening Inventory

9,50,000

 

 

------Less: Closing Inventory 

(8,00,000)

1,50,000

 

 

 

1,50,000

 

Net Charge (a+b+c)

 

5,25,000

 

 

 

 

 

Rs.5,25,000 will be shown in the Statement of Profit and Loss against Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade

 

Solution Ex. 43

 

NOTES OF ACCOUNTS

Note No. 

Particulars 

 

Rs. 

Employee Benefit Expenses 

 

------Wages

5,40,000

 

------Salaries 

7,20,000

 

 

------Bonus

1,05,000

 

 

------Staff Welfare Expenses 

60,000

14,25,000

 

Amount to be shown in the statement of Profit and Loss  

 

14,25,000