Udyog Ltd. furnishes the following summarised Balance Sheet as at 31st March, 2018: Note No. ₹ in lakh I. EQUITY & LIABILITIES (1) Shareholders' Funds : (a) Share Capital 1 2,400 (b) Reserves & Surplus 2 1,620 (2

CS Executive · Company Accounts & Auditing Practices · PYQS · December 2018
Udyog Ltd. furnishes the following summarised Balance Sheet as at 31st March, 2018: Note No. ₹ in lakh I. EQUITY & LIABILITIES (1) Shareholders' Funds : (a) Share Capital 1 2,400 (b) Reserves & Surplus 2 1,620 (2) Non-Current Liabilities: 12% Debentures 1,500 (3) Current Liabilities 3 1,880 Total 7,400 II. ASSETS (1) Non-Current Assets : Fixed Assets 4,052 (2) Current Assets 4 3,348 Total 7,400 Note 1: Share Capital : 240 Lakh fully paid Equity Shares ₹10 each - 2,400 Note 2: Reserve & Surplus : Security Premium - 350 General Reserve - 530 Capital Redemption Reserve - 400 Profit and Loss Account - 340 Total - 1,620 Note 3: Current Liabilities : Trade Payables - 1,490 Other Current Liabilities - 390 Total - 1,880 Note 4: Current Assets : Current Investments - 148 Inventories - 1,200 Trade Receivables - 520 Cash and Bank - 1,480 Total - 3,348 Additional Information : On 1st April, 2018, the company announced buy-back of 25% of its equity shares @ ₹15 per share. For this purpose it sold all its current investments for ₹150 lakh. On 10th April, 2018, the company achieved the target of buy-back. On 30th April, 2018, the company issued one fully paid up equity shares of ₹10 each by way of bonus for every four equity shares held by capitalisation of reserves. You are required to prepare Balance Sheet after bonus issue as per Schedule III of Companies Act, 2013.

Answer & Explanation:

Balance Sheet of Udyog Ltd. as on 31st March, 2018 (After Buy Back and Bonus Issue) Sr. No. Particulars Note No. Amount (₹ in Lakhs) I. Equity & Liabilities (1) Share Holder's Fund (a) Share Capital 1 2250 (b) Reserve and Surplus General Reserve 2 - Capital Redemption Reserve 3 550 Security Premium 4 50 Profit and Loss Account 5 272 (2) Non Current Liabilities Long Term Borrowings 12% Debentures 1500 (3) Current Liabilities Trade Payable 1490 Other Current Liabilities 390 Total 6502 II. Assets (1) Non-Current Assets Tangible Fixed Assets 4052 (2) Current Assets Inventories 1200 Trade Receivable 520 Cash and Cash Equivalents 730 Total 6502 Notes to Accounts Particulars ₹ In Lakhs 1. Share Capital Equity Share Capital 225 lakhs fully paid-up shares @ ₹10 each (working note 1.) 2250 2. General Reserve General Reserve 530 Less: Transfer to Capital Redemption Reserve (530) Balance Nil 3. Capital Redemption Reserve Balance before buy back and bonus issue 400 Add: Transfer due to buy back of shares from P&L a/c 70 Add: transfer from General Reserve due to Buy back 530 1000 Less: Utilization for issue of Bonus Shares (450) Balance 550 4. Security Premium Balance before buy back and bonus issue 350 Less: Utilization for premium paid on buy-back (300) Balance 50 5. Profit and Loss account Balance before buy back and bonus issue 340 Add: Profit on Sale of Investments 2 Less: Transfer to Capital Redemption Reserve (70) Balance 272 Working Notes: Particulars ₹ In Lakhs 1. Equity Share Capital Share Capital before buy back and bonus issue 2400 Less: Buy Back of Shares (25% of 2400) (600) 1800 Add: Bonus Issue (1800*1/4) 450 Closing balance after buy back and bonus issue 2250 2. Cash and Cash Equivalents Cash & Bank Balance as on 1st April 2018 1480 Add: Sale on Investments 150 Less: Payment for buy back of shares (900) Balance after buy back and bonus issue 730

Topics: Company Accounts

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic