- 111(S. Y.B.Com.

: SEM-111)
126 Accountancy and Financial Management

10.2 ONLY PROFIT AND LOSS STATEMENT

Illustration 19 : (Basic - No Adjustments)
Statement for 31-3-25 as per
From the following particulars of Sonali Ltd., prepare Profit and Loss
revised schedule.

Opening Stock of Finished Goods

Closing Stock of Finished Goods 30,000
Purchases 1,75.000
Sales 5,00.ooo
Interest Received 20,000
Dividend Received 5.000
Depreciation on Plant and Machinery 5.000
General Expenses 10,000
Salaries and Wages 50,000
Interest on Debentures 5,000
Provision for Taxation 50,000
Transfer to General Reserve 10.000
Profit and Loss (Cr.) (Previous years) 20,000
Solution :
Sonan Ltd.
Profit and Loss Statement for the year ended 31st March, 2025
Particulars Note
Revenue From Operations (Sales)
2. Other Income 25,000
Total Revenue
Expenses:
Cost of MaterialsConsumed (Purchase of FinishedGoods) 1.75.ooo
2. Changes in Inventories(Finished Goods) 1.20,ooo
(Opening 1 —Closing 30,000)
3. Employee Benefits Expenses (Salaries and Wages) 50.000
4. Finance Cost (Intereston Debenture) 5.000
5. Depreciation (On Plant and Machinery) 5.000
6. Other Expenses (General Expenses)
Total Expenses
Ill. Proflt Before Tax 1.60.ooo
Less : Provision for Taxation (50,000)
IV. Profit/(Loss) for the Period
Notes to Accounts
I. Other Income
a. Interest 20,000
b. Dividend 5,000
Total 25,000
Note : Profitand Loss (Cr.) balance b/f(Z 20,000) and Transfer to General Reserve (Z 10,000) Will
be shown in notes to accounts under Reserve and Surplus in B/S - Surplus A/c.
Illustration 20 : (Basic - No Adjustments)
The following balances have been extracted from the accounting records OfV.P. Sugar
31st March, 2025 • Limited as at

Particulars
Sale of Sugar (Net of Excise duty)
Other Operating Income (Power generation)
Other Income 1,95.616
1,30.088
 l,ltroductionto CompanyAccounts 127
cost of Materials Consumed 30.81.842
Increasein Inventories of Finished Goods,
W.I.P., etc.
salaries and Wages 5, 19.426
contributionof P.E and Gratuity Fund 2,50.ooo
Depreciation 3,32,593
Expenses
Amortisation
power and Fuel 15,23,312
Rent,Rates and Taxes 13,21,246
Finance Cost
TaxExpenses
paid-upEquity Share Capital of e 10
each
Youare required to prepare a
Statement of Profit and Loss for the year ended 31 st March, 2025.
Solution :

V.P. Sugar Ltd.

Statement ot Profit and Loss
for the year ended 31st March, 2025
particulars
Note
Revenue From Operations 72,61,657
2. Other Income | ,30.088
Total Revenue
Expenses:
Cost of MaterialsConsumed 30,81,842
2. Changes in Inventories
3. EmployeeBenefits Expense 2
4. Finance Costs 1.97,768
5. Depreciation and Amortization Expense 3
6. Other Expenses 4 0.4455?
. Total Expenses
Ill. Profit Before Tax
Tax Expense
IV.ProflV(Loss) for the Period

Notesto Accounts
1. Revenue from Operations
Sale of Sugar (Net of excise duty)
Power Generation
Total 72,61,657
2. Employee Benefit Expenses
Salaries and Wages
Contribution to P.E and Gratuity Fund
Total 7,69,426
3. Depreciation and Amortlsatlon Expenses
Depreciation
AmortisationExpenses
Total
4. Other Expenses
a. Power and Fuel
b. Rent, Rates and Taxes
Total

Illustration21 :
PrepareVertical Statement of Profit and Loss for the year ended 31-3-2024 of MAS Agro Ltd..
Particulars
Intereston Investment
Sales
4,50.ooo
 - (S. Y.B.Co,n.: SEM-ill)
128 Accountancyand Financial Management
60,000
Opening Stock of Raw Material
Purchase of Raw Material
40,000
Employee Benefits Expenses 10,000
Audit Fees 20,000
Sales Return
Additional Informatlon :
1. Interest on Investment was receivable 30,000.
2. Closing Stock of Raw Material 40,000.
3. Outstanding Audit Fees 20,000. (T.Y.B.com.,Nov.2017, adapted)
Solution :
In the Books of M/SMAS Agro Ltd.
March, 2024
Profit and Loss Statement for the year ended 31st
Note
Particulars
Revenue From Operations 2
2. Other Income
Total Income (A)
Expenses: 3
I. Cost of MaterialConsumed 40,000
2. Employee Benefit Cost 4 30,000
3. Other Expenses
Il. Total Expenses (B)
Ill. Profit Before Tax (A - B)

Notes to Accounts
I. Revenue from Operations
Sales (20,000)
Less : Retums
Total
2. Other Income
Interest Received 30,000
Add : InterestReceivable
Total
3. Cost of MaterialConsumed 60,000
Opening Stock of Raw Materials
Add : Purchases of Raw Materials (40,000)
Less : Closing Stock of Raw Material
Total
4. Other Expenses 10,000
Audit Fees 20,000
Add : OutstandingFees
30,000
Total

Illustration 22 :
Ltd., prepare a statement of Profit and Loss for the year
From the following informationof Yashraj
ended 31-3-2025.
Particulars
Sales 10,000
Discount Received 5,000
Discount Allowed
opening Stock of Raw Material
Opening Stock of Finished Goods
Purchase of Raw Material 5 oo,ooo
'25,000
Carriage Inward
Introductionto CompanyAccounts
129
ClosingStock of Raw Material
ClosingStock of Finished Goods
salaries
80,000
Bonusto Staff
StaffWelfare Expenses 60,000
Intereston Bank Loan 10,000
Depreciationon Fixed Assets 15,000
OtherAdministrativeExpenses 2,10,000
IncomeTax to be provided for the
Current year
Solution :
(T.Y.B.Com.,April 2017, adapted)
Yashraj Ltd,
Protlt and Loss Statement
for the year ended 31st March, 2025
Particulars
Note
Revenue From Operations
2. Other Income
2 10,000
. Total Income (A)
50,10,000
Expenses:
. Cost Of MaterialConsumed
2. Decrease / (Increase) in Inventories 3
3. Employee Benefits Expense 4 70,000
4. Finance Costs 5
5, Depreciation and Amortization Expense 6 15,000
5. Other Expenses 2,10,000
7
Total Expenses (B)
Ill. Profit Before Tax (A - B)
IV. Tax Expense
Provision for Tax for Current Year
V. Proflt I (Loss) for the Period
Otes to Accounts
Revenue from Operations
Sales
2. Other Income
Discount Received
3. Cost of Material Consumed 10,000
Opening Stock
Add : Purchases (Net)
Add : Carriage Inward
25,000
Less : Closing Stock
Total
4. Change In Inventories
Finished Goods
Opening Stock
Less : Closing Stock 1.50,ooo
Total (80,000)
5. Employee Benefits Expense 70,000
Salaries
b. Bonus
C. Staff Welfare Expenses 60.000
Total 10,000
6. Finance Costs
Interest on Bank Loans
15,000
 (S. KB. Com.: SEM_III)
130 Accountancy and Financial Management - 111
7. Other Expenses
a. Discount Allowed 5,000
b. Other AdministrativeExpenses
Total

Illustratlo 23 : (Outstanding Expenses, Outstanding Income, RDD)

Following is e extract of the Trial Balance of M Ltd. as on 31st March, 2025
Particulars
Sales
Opening Stock of Raw Material
Opening Stock Of Finished Goods
Purchase of Raw Materials
Purchase Returns
Sales Retums 40.00,ooo
Dividend Received
SundryIncome
Freight on Raw Material 60,000
Salaries and Wages
Bonus to Employees
Directors Remuneration
Depreciation on :
Plant and Machinery 10,00.ooo
Furniture and Fixture
Motor Vehicle 2.00.ooo
Interest on Loan from Bank of India
Repairs and Maintenance Expenses
Insurance Premium of Office Premises 60,000
Electricity Charges 80,000
Rent, Rates and Taxes 40,000
Audit Fees
Advertisement Expenses
Sundry Expenses 20,000
Addltlonal Information :
(a) Closing Stock of Raw Materialand Finished Goods was and respectively.
(b) Outstanding Salaries and Wages were
(c) Sundry income receivablewas 50,000.
(d) 50,000 to be provided for Bad and DoubtfulDebts.
(e) Prepaid Advertisement expenses were 40,000.
(f) Make a provision for Income Tax of
(g) Raw materials worth 30,000 destroyed by fire. Goods were not insured.
Prepare statement of Profit and Loss for the year ended 31st March, 2025 as per the provisions of
the Companies Act. (T.Y.B.com., Oct. 2015, April 2016, adapted)
Solution :
M Ltd.
Profit and Loss Statement for the year ended 31st March, 2025
Particulars Note
I. Revenue From Operations
2. Other Income 2
Total Income
Expenses:
I. Cost of MaterialsConsumed
2. Decrease / (Increase) in Inventories 3 60.30,ooo
3. Employee Benefits Expense 4
4. Finance Costs 5
6
Introductionto CompanyAccounts 131
5. Deprec;ntion and Amortization Expense 7
6. Other Expenses 8 23.40,ooo
Il. Total Expenses
Ill. profit Before Tax 94.20,ooo
Tax Expense : Provision for tax for (4,00.000)
current year
IV. for the Period

Notesto Accounts
1. Revenue from Operations
Sales
Less : Returns (40.00,000)
Total
2. Other Income
Dividend Income
b. Sundry Income 8.00.ooo
Add : Income Receivable 50.000
Total
3. Cost of Materials Consumed
a.Opening Stock 2000.000
b.Add : Purchases (Net) 54.00,ooo
c. Carriage Inward 60.000
d. Less : Purchase Retums
Less : Material lost by fire (30.000)
Less : Closing Stock (14,30.000)
Total
4. Change in Inventories
Finished Goods
Opening Stock 10.00,ooo
Less : Closing Stock (12.00,000)
Total
5. Employee Benefits Expense
a.Salaries and Wages 8,00.ooo
Add : Outstanding _ILQQO
b. Bonus 1,60.ooo
Total
6. Finance Costs
Interest on Bank Loans
7. Depreciation and Amortisatlon
Depreciation on
Plant and Machinery
Furniture and Fixtures
Motor Vehicle
Total
8. Other Expenses
Directors Remuneration
Repairs and Maintenance 1,60.ooo
Insurance Premium 60,000
Electricity 80.000
Rent, Rates and Taxes 40.000
AuditFees 1,00.ooo
Advertisement 2,40.ooo
Less : Pre-paid —140.000) 2,oo.ooo
Sundry Expenses 20,000
Provisionfor Bad and DoubtfulDebts 50,000
Loss by fire 30.000
Total
 (S. Y.B.Cont.: SEM-ill)
132 Accountancy and Financial Management - 111
Illustratione. (WithUsual Adjustments)
Following is the extract of Balances of Ameya Ltd. as on 31st March, 2025.
Particulars

Opening Stock of Raw Material

OpeningStock of FinishedGoods
Purchase of Raw Material
Purchase Returns
Sales Returns
Interest received on Fixed Deposits
Miscellaneous Income
Freight on Raw Material 30,000
Salaries and Wages
Bonus to Employees 80,000
Directors Remuneration
Depreciation on :
Land and Building
Plant and Machinery
Furniture _I.LQO.QQQ
Interest paid on Debentures
Interest on Loan from Bank of Baroda
Repairs and MaintenanceExpenses 80,000
Insurance Premium of Office Premises 30,000
Electricity Charges 40,000
Rent, Rates and Taxes 20,000
Audit Fees 50,000
AdvertisementExpenses
Sundry Expenses 10,000
Additional Information :
(a) Closing Stock of Raw Materialand Finished Goods was and respectively.
(b) Outstanding Electricity charges and Rent, Rates & Taxes were 10,000 and 30,000 respectively.
(c) Miscellaneous income receivable was 10,000.
(d) 50,000 to be provided for Bad and DoubtfulDebts.
(e) PrepaidAdvertisementexpenses were 20,000.
(f) Make a provision for Income Tax of
Prepare statement of Profit and Loss for the year ended 31st March,2025 as per the provisions of
the Companies Act. (T.Y.B.Com.,Oct. 2015, adapted)
Solution :
Profit and Loss Statement for the year ended 31st March, 2025
particulars Note
I. Revenue From Operations 1

2. Other Income 2 9, 10,000

Total Revenue (A)
Expenses:
1. Cost of Material Consumed 3
2. Changes in Inventory 4
3. EmployeeBenefitExpenses 5
4. Finance Costs 6
5. Depreciation and AmortisationExpenses 7
6. Other Expenses 8
Il. Total Expenses (B)
111.Profit Before Tax (A - B)
Less : Provision for Taxation
IV. ProfW(Loss) for the Period
 133
duction fo Company Accounts

to Accounts
Revenue from Operations
Sales (20.00.000)
Less : Sales Return
total
Income
2. Other 400.000
MiscellaneousIncome
4.10.000
Add : Receivable 500,000
b. Interest Received on FD
Total
3. Cost of Material Consumed 10,00.ooo
Opening Stock of Raw Material
Add : Purchase
Less : Purchase Return 25,00.ooo
Add : Freight Duty on Raw Material
30,000
Less : Closing Stock of Raw Material (5,00.000)
Total 30.30,ooo
4. Change In Inventory
Opening Stock of Finished Goods 5,00.ooo
Less : Closing Stock of Finished Goods (6.00,000)
Total
5. Employee Benefit Expenses
a. Salary and Wages 400.000
b. Bonus to Employees 80.000
c. Directors Remuneration 800.000
Total
6. Finance Costs
a.Interest on Loan 200,000
b. Intereston Debentures
Total
7. Depreciation and Amortlsation Expenses
a.Land and Building
b. Plant and Machinery 300,000
c.Furniture 1,oo.ooo
Total
8. Other Expenses
a. Reserve for DoubtfulDebts 50,000
b. Advertisement Expenses 1.20,ooo
Less : Prepaid EO.OQQ)
c.Repairs and Maintenance 80.000
d. Insurance 30,000
e. Electricity 40,000
Add : Outstanding 50,000
. Rent, Rates and Taxes 20,000
Add : Outstanding 30.000 50,000
g.Audit Fees 50,000
h, Sundry Expenses 10.000
Total

10.3 BALANCE SHEET

Illustration
G:
Fromthe following Ledger balances of Varun LTD., prepare the Balance Sheet of the company as
On31st March 2025 as per Schedule Ill of the Companies Act.
 - 111(S. Y.B.Com..• SEM-ill)
134 Accountancy and Financial Management

Particulars Particulars
Plant and Machinery Land and Building
8% Debenture Public Deposit
Employee Provident Fund Provision for Taxation 180,000
Securities Premium 80,000 Bank
Cash at Bank 34,000 Bills Receivable
Equity Shares Brokerage on Issue of Shares
Sundry Creditors 1,16,000 Bank Overdraft
Loan to Manager 70,000 Security Deposit
Deposits with ICICI Bank (5 years) Trade marks
Prepaid Insurance
Note : 24,000 fully paid Equity shares of 100 each 50 called up.
Solution :
Balance Sheet of VARUN LTD. as on 31st March 2025
Particulars Note
EQUITY AND LIABILITIES
1. Shareholders' Funds
a. Share Capital
b. Reserves and Surplus 80,000
2. Non-Current Liabilities
a. Long-term Borrowings 2
b. Long-term Provisions
3. Current Liabilities
a. Short-term Borrowings
b. Trade Payables
c. Short-term Provisions
Total 31
ll. ASSETS
1. Non-Current Assets
a. Fixed Assets
Tangible Assets 3
Intangible Assets
b. Non-Current Investment
c. Long-term Loans and Advances
d. Other Non-current Assets
2. Current Assets
a. Trade Receivables
b. Cash and Cash Equivalents 4
c. Short-term Loans and Advances 70,000
d. Other Current Assets
Total 31
Notes to Accounts
I. Share Capital
a AuthorlsedCapital:
24000 Equity Shares of 100 each
Issued &Subscribed Capital:
24,000 Equity Shares of e 100 each
Called up & Paid up Capital :
24,000 Equity shares at 50 each
2. Long Term Borrowings
a. Debentures
b. Public Deposits
5.00,ooo
Total
Introduction to CompanyAccounts
135
3. Tangible Assets
a, Plant & Machinery
b. Land and Building 6,00.ooo
Total 10,00.ooo
4. Cash and Cash Equivalent
a. Cash in Hand
b. Bank 34,000
Total
5,34,ooo
Illustratio 26
Fromthe following ledger
as on 31st March 2025 asbalances of Sunshine co. Ltd., prepare the Balance Sheet of the company
per Schedule Ill of the Companies
Act.
articulars
Equity Share Capital Particulars
General Reserves Advances to Employees
12% Debenture 30,000 Discounton issue of Debentures 12,500
Land & Buildings 7,00.ooo (unwritten off)
Goodwill Tools and Equipment 3,75.ooo
Bank Overdraft Debtors
Provisionfor Tax Cash at Bank
Prepaid Insurance 82,000 Stores & Spares
Mutual Fund Investments 25,000 Profit & Loss A/c (Credit) 21,490
Interest payable Bills Receivable 44,600
32,400 Sundry Creditors 92,560
Solution :
Balance Sheet of Sunshine Company Limited as
on 31st March 2025
rticulars
Note
EQUITY AND LIABILITIES
Shareholders'Funds
a. Share Capital (Equity)
b. Reserves and Surplus
2. Non-Current Llablllties 51,490
Long-term Borrowings (Debentures)
3. Current Liabllltles
a. Short-term Borrowings(Bank OD)
b. Trade Payables
C.Other Current Liabilities(InterestPayable) 92,560
d. Short-term Provisions (Provision for Tax) 32,400
Total 82,000
ll. ASSETS
Non-CurrentAssets
a. Fixed Assets
Tangible Assets
— IntangibleAssets (Goodwill) 2
b. Other Non-CurrentAssets (Discounton DebentureIssue)
2. Current Assets 12,500
a.Current Investments (MF)
b. Inventories
C.Trade Receivables
d. Cash and Cash Equivalents(Bank) 3
Short-termLoans and Advances (Employees)
Other Current Assets (Prepaid Insurance) 1,50.ooo
Total 25,000
 Management - (S. Y.B.Co,n..• SEM-ill)
136 Accountancyand Financial

Notes to Accounts
1. Reserve and Surplus 30,000
General Reserve 21,490
Profit & Loss AJc (Cr. Bal.)
51 ,490
Total
2. Tangible Fixed Assets
Land & Buildings
Tools & Equipment
Total
3. Trade Receivables
Sundry Debtors
44,600
Bills Receivable
Total

Illustration 27 (Unpaid Dividend)

From the follo'ing trial balance of Vishal Ltd., prepare the Balance Sheet of the Company as on
31st March, 2025 as per the Companies Act.
Trial Balance as on 31st March, 2025
Debit Credit
Advances to Employees Equity Share Capital
Cash at Bank 3,14,320 Capital Reserve 60,000
Furniture and Fixture Loan from SBI
Premises Provision for Employees
Patents 10.00,ooo Welfare Fund
Expenses on Issue of Shares 25,000 Provision for Expenses
(unwritten off) Short Term Loan from Bank 4,90.200
Trade Receivables Unpaid Dividend 64,800
Advance Tax 50,000 Profitand Loss NC 42,980
8% Government Bonds 3,36,ooo Bills Payable 85,100
Stock in Trade Sundry Creditors

Solution :
Vishal Ltd.
Balance Sheet as at 31st March, 2025

Particulars Note
EQUITY AND LIABILITIES
1. Shareholders' Funds
a. Share Capital 52.00,ooo
b. Reserves and Surplus
2. Non-Current Liabilities
a. Long Term Borrowings (Loan - SBI)
b. Long Term Provisions (Employee Welfare)
3. Current Liabilities
a. Short Term Borrowings (Bank)
b. Trade Payables 2
c. Other Current Liabilities (Unpaid Dividend) 64,800
d. Short Term Provisions (Provision for Expenses) 1 ,64.ooo
Total
ASSETS
1. Non-Current Assets
a. Fixed Assets
Tangible Assets
— IntangibleAssets (Patents) 3
b. Other Non-CurrentAssets (Expenses - Share Issue)
25,000
,ttroductionto CompanyAccounts 137
currentAssets
current Investments (Govt. Bonds) 3,36.ooo
Inventories
Trade Receivables 3,66.240
cash and Cash Equivalents (Bank) 3.14.320
Short Term Loans and Advances
(Employees) 3,oo.ooo
Other Current Assets (Adv. Tax) 50.000
total

Notesto Accounts
1. Reserves and Surplus
a. Capital Reserve 60,000
b. profitand Loss A/c (Cr. Bal.) 42,980
Total
2. Trade Payables
a. Sundry Creditors 1.00,020
b. Bills Payable 85,100
Total 1,85,120
3. Tangible Assets
a. Premises 41.09,940
b. Furniture and Fixture 7,50.ooo
Total

Illustration 28 : (Interest Accrued on Investment)

Fromthe follOwing ledger balances of Regal Limited as on 31st March, 2025, you are required to
preparethe Balance Sheet as on 31st March.2025 as per Schedule Ill Of the Companies Act.
Particulars Particulars
Office Equipment General Reserve
9% Debentures in APCO Ltd. Creditors for Goods
Loose Tools Creditorsfor Expenses 36,000
Plant and Machinery 18.00,ooo Cash Credit 75,000
Computer Software 83,250 Mortgage Loan 3,10.ooo
Debtorsfor Goods 8% Preference Share Capital
Share Issue Expense (unwrittenoff) 30,000 Equity Share Capital 15,oo.ooo
Stores and Spares 1.00,200 Staff Welfare Fund 85.000
InterestAccrued on Investment 51 ,ooo Provision for Taxation 26,550
Cash at Bank 23.000
Solution :
Regal Ltd.
Balance Sheet as on 31st March, 2025
Particulars Note
l. EQUITY AND LIABILITIES
Shareholders' Funds
a. Share Capital
— Equity Share Capital
— Preference Share Capital 5.50,ooo
b. Reserves and Surplus (General Reserve)
2. Non-Current Liabilities
Long Term Borrowings (Mortgage Loan)
b. Long Term Provisions (Staff Welfare Fund) 85,000
3. Current Liabilities
a. Short Term Borrowings (Cash Credit) 1 75,000
b. Trade Payables 2.04,500
c. Short Term Provisions (Tax) 26,550
Total 31
 138 Accountancy and Financial Management - 111(S. YB.Com.: SEM-ill)
11.ASSETS
1. Non-current Assets
a. Fixed Assets
— Tangible Assets 2 22.80,600
Intangible Assets (Computer Software) 83,250
b. Other Non-CurrentAssets (Share Issue Expenses) 30,000
2. Current Assets
a. Current Investments (9% Debentures) 245,000
b. Inventories 3
C. Trade Receivables
d. Cash and Cash Equivalents(Bank) 23.000
e. Other Current Assets (InterestAccrued on Investment) 51 ,ooo
Total

Notes to Accounts
1. Trade Payables
a. Creditors for Goods
b. Creditors for Expenses 36,000
Total
2. Tangible Assets
a. Office Equipment
b. Plant and Machinery
Total
3. Inventories
a. Loose Tools
b. Stores and Spares 1.00.200
Total

Illustration 29 :
Following is the Trial Balance of Neelam Electronics Ltd. as on 31st March, 2025.
Particulars
Cash in Hand 39.000
Cash at Bank 68.600
Share Capital
9% Debentures
Bank Overdraft (Union Bank) 400,000
Investments (Long term) 20,000
Bills Receivables - Trade
Sundry Debtors
Sundry Creditors
Security Deposit (Long Term) 8,000
Profit and Loss A/c
Securities Premium
Interest on Debentures accrued and due 13,500
Goodwill 1,30.ooo
Land and Building (Cost
Plant and Machinery (Cost e 6.00,ooo
Furniture (Cost e 1 90,000
Provision For Taxation
Advance Tax
Bills Payable 60,000
General Reserve
Stock in Trade
Capital Reserve 20.000
46,14,500 46,14,500
Introduction to Company
Accounts
Additional Information : 139
(a) The Authorised
Share capital
Of the
company was divided into Equity
(b) sundry Debtors, which
are all unsecured
and considered good, include e 1 due for more
(c) Investments
represent 5,000
Equity Shares in
X Ltd. oft 10 each, 4 per share called and paid
(d) Bills Receivable
discounted Withthe
bank, not matured tillthe Balance Sheet date, amounted to
You are required to prepare
per provisions of the Balance Sheet of
Companies Act. Neelam Electronics Ltd. as on 31st March, 2025 as
Ignore previous year figures.
(T.Y.B.Com.,Oct. 2015, adapted)
In the Books Of
Neelam Electronics Ltd.
Balance Sheet as at 31-3-2025
articulars
l. EQUITY AND LIABILITIES Note
1. Shareholders' Funds
a. Share Capital
b. Reserves and Surplus
2. Non-Current Liabllltles 2
Long-term Borrowings
3. Current Liabilities 3
a. Short-term Borrowings
b. Trade Payables 4
c. Other Current Liabilities 5 5.40,ooo
d. Short-term Provisions 6 13,500
Total 7 41 ,ooo
ll. ASSETS 44,14,500
1. Non-Current Assets
a. Property, Plant and Equipment
Intangible Assets (Goodwill) 8
b. Non-Current Investments
c. Other Non-Current Assets 9 20,000
2. CurrentAssets 10 8,000
a. Inventories
b. Trade Receivables
c. Cash and Cash Equivalents 11
Total 12

Otes to Accounts
1. Share Capital
Equity Share Capital
Authorised Shares (Par value per share : e 10)
Issued, subscribed & fully paid
1 Equity Shares of 10 each
2. Reserves and Surplus
a. Capital Reserves
b. Security Premium 20,000
C. General Reserve
d. Surplus / (Deficit)
Total
3. Long-Term Borrowings
9% Debentures
4. Short-term Borrowings
Bank Overdraft (Union Bank)
 B. Com..• SEM-Il')
140 Accountancy and Financial Management - Ill (S. Y.
5. Trade Payables
a. Sundry Creditors for Goods
b. Bills Payable 60,000
Total
6. Other Current Liabilities
Interest due on Debentures 13,500
7. Short Term Provisions
Provision for Tax
Less : Advance Tax
Total 41 ,ooo
8. Property, Plant and Equipment
Land and Building
Less : Depreciatoin
Plant and Machinery
Less : Depreciation
Furniture
Less : Depreciation _EO&QLO) 90,000
Total
9. Non-Current Investment
In Shares of X Ltd. 20,000
10. Other Non-Current Assets
Security Deposit 8,000
11.Trade Receivable
(Unsecured, Considered Good)
a. Sundry Debtors
Outstanding for more than 6 months
Other 11
b. Bills Receivable (Trade)
Total
12. Cash and Cash Equivalent
a. Balances with Banks 68,600
b. Cash on Hands 39,000
Total

Note to Balance Sheet :

Contingent Liabilities
I. There are Bills Receivable discounted with the bank, not matured till the date of Balance Sheet
of? 15,000.
2. The uncalled amount of investmentsin 5,000 Equity shares ofZ 6 per share (C 30,000).
Illustration 30 :
Following is the trial balance of KKK Ltd. as on 31st March, 2025 •
DebitBalances CreditBalances
Fixed Assets (Net Block) Equity Share Capital
Investments (e 10 each fully paid)
Closing Stock 9% PreferenceShare Capital
Sundry Debtors 122.500 (C 100 each fully paid)
Share Issue Expenses 20,000 Profit & Loss Statement
Staff Advance Securities Premium
Advance Tax 60,000 Debenture Redemption Reserves 30,000
Pre-paid Expenses 45,000 General Reserves
Advance to Suppliers 27,500 8% Debentures 75,000
Cash in Hand 12,500 Loan from Director Mr. D
Bank Balance 1,10.000 Loan from Subsidiary Co. 10,000
Sundry Creditors 70.000
Bills Payable 58,500
Provision for Taxation 21,500
62,500
Introductionto CompanyAccounts 141
Additional Information :
(a) Transfer to debenture redemption
reserves 50,000 and General Reserves 25,000.
(b) Entire authorised share capital has
been issued & subscribed.
(c) 8% Debentures are secured
against all fixed assets. The figure in trial balance includes interest
accrued and due 25,000.
(d) Loan from Director and subsidiary Co. are unsecured, and for short term.
(e) Creditors include Creditors for
goods 40,000 while for expenses 18,500.
(f) Stock comprises Of Raw-materials goods
75,000. Work in progress 50,000 and Finished
(g) Of the debtors, debts due for more and
than 6 months is 22,500. All debts are unsecured
considered to be good.
(h) profit and Loss Statement figure in Trial
Balance is arrived at as under :

Previous Year's Balance b/d

Net Profit for the Year

(i) Ignore Previous Year's figures.

After considering the above adjustments, prepare Balance Sheet of the Company as on 31 st March,
2025 as per schedule Ill requirements. (T.Y.B.Com.,Mar. 08, adapted)
Solution :
KKK LTD.
Balance Sheet as at 31st March, 2025
Hiculars Note
EQUITY AND LIABILITIES
. Shareholders' Funds
a. Share Capital
b. Reserves and Surplus 2
2. Non-Current Liabilities
Long-term borrowings 3
3. Current Liabilities
a. Short-term Borrowings 4 80,000
b. Trade Payables 5 80,000
c. Other Current Liabilities 6 25,000
d. Short-term Provisions 7 2,500
Total
ll. ASSETS
Non-currentAssets
a. Property, Plant and Equipment
b. Non-Current Investments
c. Other Non-Current Assets 8 20,000
2. Current Assets
a. Inventories 9
b. Trade Receivables 10
c.Cash and Cash Equivalents 11
d. Short-term Loans and Advances 12
Total

Otes to Accounts
I. Share Capital No.
a. Equity Share Capital
Authorised, Issued, subscribed &
fully paid Shares (Z 10) 44,000
b. PreferenceShare Capital
9% Pref. Shares
fully paid Shares (C 100) 1,ooo
Authorised, Issued, subscribed &
Total
142 AcconNtancyaxd Financial Management - m (S. Y.B.Com.:SEM-ill)
2. Reserves and Surplus
a. Secunties Premium 30.000
b. Debenture Redemption Reserve
Opening Balance
Additions year
C. General Reserve
Balance b/d 75,000
Tfd. from P & L A/c
d. Surplus / (Deficit)
Balance in Statement Of Profit & Loss b/d
Surpkß for ttY year
Available for
Less: Allocations and Appropriations
Transfer to Redemption Reserve 50,000
Transfer to General Reserve __25EQQQ
Appropriatk:rts _1Z5m0)
Total
3. Long-term borr•lms
8% Debentures (secured by charge all fixed assets)
4. Short-term Borrowir.
Loans and Advances frcxn Related Parties (Unsecured)
— from Directors 10,000
— from Subsidiaries 70,000
Total 80,000
5. Trade Pay±les
a. Sundry Creditors for Goods 40,000
b. Sundry Creditors for Expenses 18,500
c. Bills Payable 21,500
Total 80,000
6. Other Current Lla*tles
Interest accrued and due on Debentures 25,000
7. Short-term Prøviüns
Provision for Tax 62,500
Less : Advance Tax 2,500
Total 2,soe
8. Other Assets
Share Issue Expenses (assumed, amortiz±le after 12 months). 20,000
9. Inventories
a. Raw Materials
b. Work-in-Progress 50,000
c. Finished Goods 75,000
Total
10. Trade Receivables
Unsecured, considered good
— for than 6 months
Other
22,500
1,oo.ooo
Total
11. Cash and Cosh
a. Balances wit) Banks
b. Cash on Hand
12,500
Total
Advance 1,22 500
12. Short term Loma
Unsecured, Considered Good
a. Pre-paid Expenses 45.000
b. Staff Advance
c, Advance to Suppliers 27,500
Total
Introduction to Company
Accounts 143
Notes :
1. Items with Nil amounts
need not be given in need not be shown
the main in the final accounts; further, sub-group totals also
2. Excess Of Tax Provision Balance Sheet (refer any published annual report).
after deducting Advance Tax is shown under Short-Term Provisions
(ICAI - FAQ / AS-22).
3. Share Issue Expenses
are
and shown under 'Other assumed to be amortizableafter 12 months, in absence of details,
Non-CurrentAssets'
(ICAI - GN). Alternatively,these may be adjusted
Illustration 31 :
Following is the Trial Balance
of EKKY Ltd. as
on 31st March, 2025
Debit Balance
Stock (at cost) CreditBalance
Fixed Assets (Net block) Share Capital (Equity shares of
sundry Debtors (unsecured & 12.35,ooo
good) General Reserve 70,000
Staff Advance
Cash on hand 97,400 Loan from State-Financial Corp. 3,oo,ooo
Bank balance 60,000 Provision for Taxation 11,ooo
Share Issue Expenses Net Profit for the year
26,600 Profit and Loss A/c 1 ,oo,ooo
Bills Receivable - Trade
Investments (at cost) 58,000 (Opening balance)
75,000 Short Term Loans 50,000
Sundry Creditors
Unclaimed Dividend 5.000

Additional Information:
1. Transfer to General Reserve 50,000.
2. Directors recommended 6% dividend.
3. Out Of debtors, debts due for more than six months were 52,000.
4. Sundry Creditors included creditorsfor goods while the remaining are for expenses.
5. Loan from state financial corporationis secured against stock.
6. Market value of investments is 78,000 while its face value is 60,000.
7. Ignore previous year's figures and corporatedividend tax,
Prepare Balance Sheet as on 31st March, 2025 as per legal requirements, after considering the
above adjustments. (T.Y.B.Com.,Mar. 12, adapted)
Solution:
EKKY CO. LIMITED
Balance Sheet as at 31st March 2025

particulars Note
l. EQUITY AND LIABILITIES
I. Shareholders'Funds
a. Share Capital
b. Reserves and Surplus 2 440,000
2. Non-Current Llabllltles
Long Term Borrowings 3
3. Current Llabllltles
a. Short Term Borrowings 50,000
4
b. Trade Payables
c. Other Current Liabilities 5 5,000
d. Short Term Provisions
6 11,000
Total
ll. ASSETS
1. Non-current Assets Block)
a. Property, Plant and Equipment(Net MV .• 78,000) 75.000
: 60,000;
b. Non-Current Investments (FV 7 26,600
c. Other Non-Current Assets
 Accountancyand Financial Management- 111(S.Y.B.Com..•
SEM-ill)
2. Current Assets
a. Inventories
b. Trade Receivables 8
c. Cash and Cash Equivalents 9 5.54.ooo
d. Short Term Loans and Advances 10 97.400
Total

Notes to Accounts
1. Share Capital No.
Equity Share Capital
Issued, subscribed & fully paid shares 20,000
2. Reserves and Surplus
a. General Reserve
Balance b/d 70,000
Tfd. from P & L A/c _50xQQ_Q 1,20.ooo
b. Surplus / (Deficit)
Balance in Statement of Profit and Loss b/d
Surplus for the Year
Available for Appropriation
Less : Allocations and Appropriations
Transfers to General Reserve
Appropriations 3,20.ooo
Total
3. Long Term Borrowings
Loan from SFC (Secured against Stock)
4. Trade Payables
a. Sundry Creditors for Goods 1.05,ooo
b. Sundry Creditors for Expenses 35.000
Total 1.40,ooo
5. Other Current Liabilities
Unclaimed Dividend 5,000
6. Short Term Provisions
Provision for Tax
11,000
7. Other Non-CurrentAssets
Share Issue Expenses (assumed, amortizableafter 12 months)
8. Trade Receivables 26,600
(Unsecured, Considered Good)
a. Sundry Debtors
Outstanding for more than 6 months
— Other
52,000
b. Bills Receivable - Trade 4,00.ooo
58,000
Total
9. Cash and Cash Equivalents
a. Balances with Banks
b. Cash on Hand
Total
60.000
10.Short Term Loans and Advances
(Unsecured, Considered Good)
Staff Advance
97,400
Notes Forming Part Of Accounts : Directorshave proposeddividend
of 6%. (e I
Illustration 32 :
Maya Enterprise Private Limited fumishes you 'Mththe following
Trial Balance as on 31st March,

Particulars
Debit(t) Credit
Cash in Hand
Balance with Bank 50,000
Introductionto Company
Accounts
sundry Debtors 145
Investment in Debentures
of Tata Ltd.
Stock at cost
AdvanceIncome Tax Paid
provisionfor Income Tax 75,000
Sundry Creditors
EquityShare Capital (FV 1
proftiand Loss Account each)
5.00,ooo
Advance Received from
Customer
Provisionfor DoubtfulDebts 50,000
Fixed Deposits with IDBI (Maturity 25,000
on 31-7-2024)
Fixed Assets
AccumulatedDepreciation 2,10,000
Total 60,000
The directors have proposed
to maintain final equity
dividend @ 15% and appropriation of 1.00.000
Creditors include payable to MSME.
prepareBalance Sheet as at
31st March,2024 as requiredby the
Solution : Companies Act, 2013.
(T.Y.B.Com.April2023, adapted)
MayaEnterprise Private Llmlted
Balance Sheet as at 31st March, 2024
articulars
Note
EQUITY AND LIABILITIES
Shareholders'Funds
a. Share Capital
b. Reserves and Surplus
2. CurrentLlabllitles 2
a. Trade Payables
(A) Total Outstanding Dues of Micro Enterprises
and Small Enterprises
(B) Total Outstanding Dues of Other Creditors Other
3 40,000
than Micro Enterprises and Small Enterprises
b. Other Current Liabilities 4 50,000
Total
ll. ASSETS
. Non-currentAssets
a. Property,Plant and Equipment 5 1,50.ooo
b. Non-Current Investments 6
c. Long Term Loans and Advances 7 25,000
2. Current Assets
a. Current Investments 8
b. Inventoriesat Cost 75.000
c.Trade Receivables 9 1.50.ooo
d. Cash and Cash Equivalents 10 1.50.ooo
Total

Otes to Accounts
. Share Capltal No.
Equity Share Capital
Authorlsed, Issued, Subscribed and Paid-up
Equity Share Capital (FVC I each)
2. Reserves and surplus
a. Profit and Loss A/c
to General Reserve I.oo,ooo
Less : Appropriation - Tranferred -I.QQXQQQ
 SEM-111)
146 Accountancy and Financial Management - 111(S. Y.B.Com.:
b. General Reserve as per last Balance Sheet
Add : Transferred during the current year
Total
3. Trade Payables
Sundry Creditors
4. Other Current Llabllltles
Advance received from Customer 50,000
5. Property, Plant and Equipment
ppE at Cost 2,10,000
Less : Provision for Depreciation 60,000
Total
6. Non-Curren Investment
Investment in Debentures of Tata Ltd.
7. Long-term Loans and Advances
Advance Income Tax paid
Less : Tax Provision Pending Assessment
Total 25,000
8. Current Investments
Fixed Deposits with IDBI Bank (Maturityon 31-7-2024)
9. Trade Receivables
Sundry Debtors
Less Provision for Bad Debts 25,000
Total
10.Cash and Cash Equivalents
Cash in Hand 50,000
Balance with Bank 1.00,ooo
Total

Illustration 33 :
From the followingparticularsfumished by Elegant Ltd. Prepare the Balance Sheet as on 31st
March, 2025 as requiredby Part-I, Schedule Ill of the CompaniesAct, 2013.
articulars Debit(0 Credit(0
Equity Share Capital (Face Value of 100 each)
Call in Arrears 5,000
Land & Building
Plant & Machinery
Furniture
General Reserve
Loan From State Financial Corporation
Stock :
Raw Materials
Finished Goods
Provision for Taxation
Sundry Debtors
Advances 10,00.ooo
Proposed Dividend 2.13,500
Profit& Loss Account
Cash at Bank
PreliminaryExpenses 1.50,ooo
Unsecured Loan
Sundry Creditors (for Goods and Expenses)
The following additional Information Is also provided:
1. Preliminary expenses included 25,000 Audit Fees and 3,500 for out
of pocket expenses paid
to the auditors.
2. 10,000 equityshares were issued for considerationotherthan cash
3. Debtors Of 2.60,000 are due for more than 6 months.
 Introductionto Company
Accounts
4. The cost of the assets 147
Building Were:
5. The balance Of Plant Machinery
35.00,OOOand Furniture 3, 12,500.
37,500 for the interest in the Loan
accrued but notaccount Withstate Finance Corporation is inclusive of
due, The loan is secured by hypothecation of Plant &
6. Balance at bank< 10,000
WithGlobal
Bank Ltd.. whichis
nota scheduledbank.
(SYBAF,April 2019,adapted)
Regal Ltd.
Balance Sheet as
on 31st March, 2025
Particulars
l. EQUITY AND LIABILITIES Note
1. Shareholders' Funds
a. Share Capital
b. Reserves and Surplus
2. Non-Current Llabllltles 2 68, 16.500
Long Term Borrowings
3. Current Liabilities 3 13, 17.500
a. Trade Payables
b. Short-term Provisions 4
c. OtherCurrent Liabilities 5
Total 6 —3%5QQ
. ASSETS 95,11 ,500
Non-CurrentAssets
Fixed Assets
Tangible Assets
2. Current Assets 7
a. Inventories
b. Trade Receivables 8
C.Short-term Advance 9
d. Cash and Cash Equivalents 10 2, 13,500
e.Other Current Assets
Il
Suspense A/c 12 1?Ä50Q
66,500
Total

Notes to Accounts
1. Share Capital
Issued and Subscribed :
50,000 Equity Shares of? 100 each
Less : Calls in Arrears (5,000)
(Out of the above 10,000 shares were issued for
consideration other than cash)
Total
2. Reserves and Surplus
General Reserve
Profit and Loss A/c + 3.00,000)
Less : PreliminaryExpenses (25,000 + 3,500) (28,500)
Total
3. Long-term Borrowing
Loan fromSFC 7,50.ooo
Less : Interest Accrued bue not due 13_som
UnsecuredLoan 6,05.ooo
Total
4. Trade Payable
Creditors
5. Short-term Provlslon
Provision for Taxation
 -111 (S. KB. Com.: SEM-no
148 Accountancy and Financial Management
6. Other Current Llabllitles 37,500
Interest On Loan Accrued but not due
7. Tangible Fixed Asset . 30.00,ooo
(a) Land and Building
Less : Provision for Depreciation
(b) Plantand Machinery
Less : Provision for Depreciation 3,12,500
(c) Furniture 2,50.ooo
Less : Provision for Depreciation
Total
8. Inventories
Stock of Raw Materials
Stock of Finished Goods
Total
9. Trade Receivables
Sundry Debtors :
Due for more than 6 months
Other Debtors
Total
10. Short-term Loan Advances
Advances
11. Cash and Cash Equivalents
Cash at Bank
With Non-Schedule Bank 10,000
Total
12.Other Current Asset
PreliminaryExpenses
Less : Payment to Auditors (28.500)
Total

10.4 BOTH PROFIT & LOSS AND BALANCE SHEET

Illustration 34 :
The following is the trial balance of SS Ltd. as on 31-3-2024 •
Particulars Particulars
Machinery Equity Share Capital
Land 9% PreferenceShare Capital
Debtors Sales
Purchases Bills Payable
Advance Tax 50,000 Cash Credit
Investments Unclaimed Dividend 20,000
Wages 30,000 General Reserve 80,000
Salaries 1,50.ooo Profitand Loss NC
Rent 60,000 10% Debentures
Opening Stock 90.000
Interest on Debentures 10,000
Licenses and Franchise 180,000
Interim Dividend 30,000

Additional Information :
The authorised capital of the company was 20,000 Equity
shares of 100 each and 8,000 9%
Preference of 100 each.
2. Closing stock as on 31-3-2024 was 60,000.
3. Depreciationwas to be providedon Machinery@ 10%.
4. 10% of the investments were short term in nature.
5. Debentureswere to be redeemedon 31•8-2024.
Introductionto CompanyAccounts 149
Create provision for doubtful debt
@ 10%.
During the year 20,000 were
transferred to General reserve.
8. providefor Taxation @ 30%.
prepare Income Statement and
Balance Sheet from the given information.
solution : adapted)
(SYBAF,April 2018,
SS Ltd.
Balance Sheet As on 31st March, 2024
particulars Note
l. EQUITY AND LIABILITIES
1. Shareholders' Funds
a. Share Capital 18,00.000
b. Reserves and Surplus 2 25.6B,ooo
2. Current Liabilities
a. Short-termBorrowings (Cash Credit)
b. Trade Payables (Bills Payable) 200.000
c. Other Current Liabilities 120,000
d. Short-termProvisions 4 -222.000 642.000
Total
ll. ASSETS
1. Non-CurrentAssets
a. Fixed Assets
(i) Tangible Assets 5 23,50.ooo
(ii) Intangible Assets (Licence and Franchise) 25,30.ooo
b.Non-Current Investments
2. Current Assets
a. Current Investments 30,000
b. Inventories 60,000
c.Trade Receivables 6
d. Short-term Loans and Advances (Advance Tax)
Total

Revenue Statement for the year ended 31st March, 2024

Particulars Note
1. Revenue From Operations(Sales) 20.00,ooo
l. Total Revenue
Expenses:
1. Purchases of Stock-in-Trade
2. Change in Inventoriesof Finished Goods,
Work-in-Progress and Raw Materials 8 30.000
3. Employee Benefit Expenses 9 1 ,80.ooo
4. Finance Costs (Interest on Debentures) 10.000
5. Depreciationand AmortisationExpenses
6. Other Expenses 10
ll. Total Expenses 12.60,ooo
111. Profit Before Tax 7.40,ooo
Less : Tax @ 30% 2,22.ooo
Ill. ProtiV(Loss) tor the Period

Notes to Accounts
1. Share Capital
Authorised Share Capital
9% 8,000 Preference Shares of 100 each
20,000 Equity Shares of 100 each
Total
1so Accountancy and Financial Management - 111(S. Y.B.Cont..• SEM-111)
Issued, Subscrlbed end Paid-up Capltal
9% 8,000 Preference Shares of? 100 each. fully paid up
10,000 Equity Shares of 10 each, fully paid up
Total
2. Reserves end Surplus
a. General Reserve
Opening Balance 80.000
Add : Transfer during C.Y.
b. Profit and Loss Account
Opening Balance
Add : Profit of C.Y.
Less : Transfer to General Reserve 20,000
Less : InterimDividend
Closing Balance transferred to Balance Sheet
Total
3. Other Current Llabllltles
a. Debentures to be redeemed
b. Unclaimed Dividend 20,000
Total
4. Short-term Provisions
Provision for Tax
5. Tangible Assets
a. Machinery
Less : Depreciation @ 10% 13,50.000
b. Land
Total
6. Trade Receivables
SundryDebtors
Less : Provision for DoubtfulDebt @ 10% (30,000)
Total
7. Short-term Loans and Advances
Advance Tax 50,000
8. Changes In Inventories of Flnlshed Goods,
Work-in-Progress and Raw Materials
Opening Stock 90,000
Less : Closing Stock 60,000
Total 30,000
9. Employee Benefit Expenses
a. Salary
b. Wages 30,000
Total
10. Other Expenses
a. Provision for Doubtful Debts 30,000
b. Rent 60,000
Total 90,000