The following is the Trial Balance of Omega Limited as on 31.3.
20X2: (Figures in Rs ‘000)
Debit Credit
Land at cost 220 Equity Capital (Shares of Rs. 10 each) 300
Plant & Machinery at cost 770 10% Debentures 200
Trade Receivables 96 General Reserve 130
Inventories (31.3.X2) 86 Profit & Loss A/c 72
Bank 20 Securities Premium 40
Adjusted Purchases 320 Sales 700
Factory Expenses 60 Trade Payables 52
Administration Expenses 30 Provision for Depreciation 172
Selling Expenses 30 Suspense Account 4
Debenture Interest 20
Interim Dividend Paid 18
1670 1670
Additional Information:
(i) The authorized share capital of the company is 40,000 shares of Rs. 10 each.
(ii) The company on the advice of independent valuer wish to revalue the land at Rs. 3,60,000.
(iii) Declared final dividend @ 10% on 2nd April, 20X2.
(iv) Suspense account of Rs. 4,000 represents cash received for the sale of some of the
machinery on 1.4.20X1. The cost of the machinery was Rs. 10,000 and the accumulated
depreciation thereon being Rs. 8,000.
(v) Depreciation is to be provided on plant and machinery at 10% on cost.
You are required to prepare Omega Limited’s B/S as on 31.3.20X2 and Statement of P&L with
notes to accounts for the year ended 31.3.20X2. Ignore previous years’ figures & taxation.
Omega Limited
Balance Sheet as at 31st March, 20X2
Particulars Note No. (Rs. ‘in 000)
Equities & Liabilities
Shareholders’ Funds
Share Capital 1 300
Reserves & Surplus 2 530
Non-Current Liabilities
Long Term Borrowings 3 200
Current Liabilities
Trade Payables 52
Total 1082
Assets
PPE (Property, Plant & Equipment) 4 880
Current Assets
Inventories 86
Trade Receivables 96
Cash & Bank Balances 20
Total 1082
Statement Of Profit & Loss for the year 31st March 20X2
Particulars Notes Rs. (in 000)
Revenue from Operations 700
Other Income 5 2
Total Revenue 702
Expenses
Purchases 320
Finance Costs 6 20
Depreciation (10% of 760) 76
Other Expenses 7 120
Total Expenses 536
Profit (Loss) for the Period 166
Note No. Rs. In 000 Rs. In 000
1 Share Capital
Equity Share Capital
Authorized 400
40000 shares of Rs. 10 each
Issued & Subscribed 300
30000 shares of Rs. 10 each
2. Reserves & Surplus
Securities Premium Account 40
Revaluation Reserve (360-220) 140
General Reserve 130
Profit & Loss Balance
Opening Balance 72
Profit for the Period 166 238
Less Dividend (18) 220
530
3 Long Term Borrowings
10% Debentures 200
4 PPE
Land
Opening Balance 220
Add Revaluation Adjustment 140 360
Plant & Machinery
Opening Balance 770
Less Disposed Off (10)
760
Less Depreciation (172-8+76) (240)
Closing Balance 520
Total 880
5 Other Income
Profit on Sale of Machinery
Sale Value of Machinery 4
Less: Book Value (10-8) 2 2
6 Finance Costs
Debenture Interest 20
7 Other Expenses
Factory Expenses 60
Selling Expenses 30
Administrative Expenses 30 120
You are required to prepare Balance sheet and statement of Profit and Loss from the following
trial balance of Haria Chemicals Ltd. for the year ended 31st March, 20X1.
Trial Balance as at 31st March 20X1
Particulars Rs. Particulars Rs.
Inventory 680000 Equity Share Capital (Rs. 10 each) 2500000
Furniture 200000 11% debentures 500000
Discount 40000 Bank Loan 645000
Loan to Directors 80000 Trade Payables 281000
Advertisement 20000 Sales 4268000
Bad Debt 35000 Rent Received 46000
Commission 120000 Transfer Fees 10000
Purchases 2319000 P&L Account 139000
Plant & Machinery 860000 Depreciation Provision: Machinery 146000
Rentals 25000
Current Account 45000
Cash 8000
Interest on Bank Loans 116000
Preliminary Expenses 10000
Fixtures 300000
Wages 900000
Consumables 84000
Freehold Land 1546000
Tools & Equipment 245000
Goodwill 265000
Trade Receivables 440000
Dealer Aids 21000
Transit Insurance 30000
Trade Expenses 37000
Distribution Freight 54000
Debenture Interest 55000
8535000 8535000
Additional Information: Closing Inventory on 31st March 20X1 = Rs. 823000
Haria Chemicals Ltd.
Balance Sheet as at 31st March, 20X1
Particulars Note No. (Rs. ‘in 000)
Equities & Liabilities
Shareholders’ Funds
Share Capital 1 2500000
Reserves & Surplus 2 740000
Non-Current Liabilities
Long Term Borrowings 3 1145000
Current Liabilities
Trade Payables 281000
Total 4666000
Assets
Non-Current Assets
PPE (Property, Plant & Equipment) 4 3005000
Intangible Assets 265000
Current Assets
Inventories 823000
Trade Receivables 440000
Cash & Bank Balances 5 53000
Short Term Loan & Advances 6 80000
Total 4666000
Haria Chemicals Ltd.
Statement of Profit and Loss for the year ended 31st March, 20X1
Particulars Notes Rs. (in 000)
Revenue from Operations 4268000
Other Income 7 56000
Total Revenue 4324000
Expenses
Cost of Materials Consumed 8 2319000
Change in Inventory of finished goods 9 (143000)
Employee Benefit Expenses 10 900000
Finance Cost 11 171000
Other Expenses 12 476000
Total Expenses 3723000
Profit (Loss) for the Period 601000
Notes to the Accounts
Note No. Rs. In 000 Rs. In 000
1 Share Capital
Equity Share Capital
Authorized 2500000
250000 shares of Rs. 10 each
Issued & Subscribed 2500000
250000 shares of Rs. 10 each
2. Reserves & Surplus
Profit & Loss Balance
Opening Balance 139000
Profit for the Period 601000 740000
3 Long Term Borrowings 500000
11% Debentures 645000 1145000
Bank Loan (Assumed Long Term)
4 PPE
Freehold Land 1546000
Furniture 200000
Fixtures 300000
Plant & Machinery 860000
Less Depreciation (146000) 714000
Tools & Equipment 245000
Total 3005000
5 Cash & Bank Balances
Current Account 45000
Cash 8000 53000
6 Short Term Loan & Advances
Loan to Directors 80000
7 Other Income
Rent Received 46000
Transfer Fees 10000 56000
8 Cost of Materials Consumed
Purchases 2319000
9 Change in Inventory
Opening Inventory 680000
Closing Inventory (823000) (143000)
10 Employee Benefit Expense
Wges 900000
11 Finance Cost
Interest On Bank Loan 116000
Debenture Interest 55000 171000
12 Other Expenses
Consumables 84000
Preliminary Expenses 10000
Bad Debts 35000
Discount 40000
Rentals 25000
Commission 120000
Advertisement 20000
Dealers Aids 21000
Transit Insurance 30000
Trade Expenses 37000
Distribution Freight 54000 476000
