DK Goel Accountancy Class 12 Solutions Chapter 1 Financial Statements of Companies (As per Schedule III) is a chapter from the current edition of DK Goel Accountancy Class 12 textbook solutions that is outlined by expert Accountancy teachers. MNS EdTech offers DK Goel Solutions to help students understand all of the theories in particular.
DK Goel Solutions Class 12 – Chapter 1 – Part B
Question 1
On 1st April 2018, ABC Ltd. was established with an authorized capital of ₹. 25,00,000/- divided into 2,50,000 equity shares of ₹. 10/- each. Out of these, the company issued 1,00,000 equity shares of ₹. 10/- each at a premium of 10%. The amount was payable as follows:
On Application: ₹. 4/- (including premium)
On Allotment: ₹. 4/-
On Final Call: ₹. 3/-
The public applied for 90,000 equity shares and all the money was duly received. How will you show the ‘Share Capital’ in the Balance Sheet of a company? Also, prepare ‘notes to accounts’ for the same.
Solution:
EXTRACT OF BALANCE SHEET OF ABC LTD.
As at 31st March 2019
| Particulars | Note No. | AmountCurrent year | AmountPrevious year |
| ₹ | ₹ | ||
| EQUITY AND LIABILITIES | |||
| Shareholder’s Funds: | |||
| Share Capital | 1 | 9,00,000 |
Notes to Accounts:
| Particulars | ₹ |
| Share Capital: | |
| Authorised Capital: | |
| 2,50,000 Equity Shares of ₹.10/- each | 25,00,000 |
| Issued Capital: | |
| 1,00,000 Equity Shares of ₹. 10/- each | 10,00,000 |
| Subscribed and Fully Paid | |
| 90,000 Equity Shares of ₹. 10/- each | 9,00,000 |
Question 2
French Ltd. has an opening debit balance of ₹. 5,00,000/- in Reserves and Surplus as Balance of Statement of Profit and Loss. It earned a profit of ₹. 8,00,000/- for the year ended March 31st 2019. How would you show these items in the Balance Sheet and notes to accounts?
Solution:
French Ltd.
EXTRACT OF BALANCE SHEET As at 31st March 2019
| Particulars | Note No. | 31.03.2019 | 31.03.2018 |
| ₹ | ₹ | ||
| EQUITY AND LIABILITIES | |||
| Shareholder’s Funds: | |||
| Reserves and Surplus | 1 | 3,00,000 | (5,00,000) |
Notes to Accounts:
| Particulars | ₹ |
| Reserves and Surplus: | |
| Surplus | |
| Balance in the statement of P&L (Opening) (5,00,000) | |
| Surplus for the period 8,00,000 | 3,00,000 |
Question 3
Neptune Ltd. has the following balances on 1st April 2018:
₹
General reserve 4,50,000
Statements of P&L 2,00,000
During the year ended 31st March 2019, it incurred a loss of ₹.3,20,000/-. How would you show these items in the Balance Sheet and notes to accounts?
Solution:
Neptune Ltd.
EXTRACT OF BALANCE SHEET As at 31st March 2019
| Particulars | Note No. | 31.03.2019 | 31.03.2018 |
| ₹ | ₹ | ||
| EQUITY AND LIABILITIES | |||
| Shareholder’s Funds: | |||
| Reserves and Surplus | 1 | 3,30,000 | 6,50,000 |
Notes to Accounts:
| Particulars | ₹ |
| Reserves and Surplus: | |
| General Reserve | 4,50,000 |
| Surplus | |
| Balance in the statement of P&L (Opening) 2,00,000 | |
| Surplus for the period (3,20,000) | (1,20,000) |
| 3,30,000 |
Question 4
Name the sub-headings under which the shareholder’s funds shall be classified in a company’s balance sheet.
Solution:
Shareholder’s funds shall be classified as follows:
- Share Capital
- Reserves and Surplus
- Money received against share warrants
Related Links
| DK Goel Accountancy Solutions Class 12 – Part B (Chapter wise) | |
| Chapter 2 Financial Statements Analysis | Chapter 3 Tools for Financial Analysis: Comparative Statements |
| Chapter 4 Common Size Statements | Chapter 5 Accounting Ratios |
| Chapter 6 Cash Flow Statement (As per AS – 3 Revised) | Chapter 1 Financial Statements of Companies |
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