Case Study
Balance Sheet of XYZ Ltd as on 31‐Mar‐2015 and 31‐Mar‐2016
31.03.15 31.03.16 31.03.15 31.03.16
Liabilities Rs Rs. Assets Rs. Rs.
Share Capital 14,40,000 19,20,000 Fixed Assets 38,40,000 45,60,000
Capital Reserve --- 48,000 Less: Depreciation (11,04,000) (13,92,000)
General Reserve 8,16,000 9,60,000 27,36,000 31,68,000
Profit & Loss Account 2,88,000 3,60,000 Investments 4,80,000 3,84,000
9% Debenture 9,60,000 6,72,000 Cash 4,000 ___
Sundry Creditors & Bills Payable 5,76,000 6,24,000 Sundry Debtors
12,00,000 14,00,000
Proposed Dividend 1,44,000 1,72,800 Stock 1,40,000 1,84,000
Provision for Tax 4,32,000 4,08,000 Preliminary Expenses 96,000 48,000
Unclaimed Dividend ___ 19,200
46,56,000 51,84,000 46,56,000 51,84,000
Additional Information
1. During the year 2015 ‐ 2016, Fixed Assets with a book value of Rs 2,40,000 (accumulated depreciation Rs 84,000) was sold for Rs 1,20,000
2. Provided Rs 4,20,000 as depreciation on Fixed Assets
3. Some investments are sold at a profit of Rs 48,000 and the Profit was credited to Capital Reserve
4. It was decided that stocks be valued at cost, whereas previously the practice was to value stock at cost less 10 percent. The stock was Rs 2,59,200 as on 31.03.2015. The stock as at 31.03.16 was correctly valued at Rs 3,60,000
5. It was decided to write off Fixed Assets costing Rs 60,000 on which depreciation amounting to Rs 48,000 has been provided.
6. Debentures are redeemed at Rs 105
