On 31 st March 2025, the following balances are extracted from the books of Chia Limited: Particulars ₹ in Lakhs 40,000 Equity Shares of 100 each…

CA Intermediate · Advanced Accounting · PYQS · September 2025
On 31 st March 2025, the following balances are extracted from the books of Chia Limited: Particulars ₹ in Lakhs 40,000 Equity Shares of 100 each 40.00 Money received against share warrants 2.70 General Reserves 6.90 Capital Reserves (₹ 20,000 is Revaluation Reserve) 12.50 Profit and Loss account 3.50 Securities Premium 0.75 Deferred tax liabilities (Net) 0.56 10% Debentures (secured) 5.00 Loan from SSA Finance Corporation 10.00 Other Long Term Loans (unsecured) 4.25 Short-term borrowings 6.95 Trade Payables 5.69 Other current liabilities 1.41 Short-term Provisions 1.36 Total 101.57 Freehold Land 30.88 Plant & Machinery 26.80 Investment in Debentures of Gland Limited 6.00 Capital work in progress 11.40 Trade receivables 11.57 Inventories (finished goods) (as on 31 st March 2025) 4.67 Goods-in transit (finished goods) (as on 31 st March 2025) 1.35 Call in arrears 0.64 Cash in hand 0.56 Balances with banks 7.70 Total 101.57 The following additional information is also provided: (i) The Authorised Share Capital consists of 50,000 Equity Shares of 100 each. (ii) 5,000 fully paid equity shares were allotted as consideration other than cash. (iii) Debentures of Glad Limited are acquired by the Company with the intention of holding them for more than two years. (iv) The Cost of Plant and Machinery is 41,00,000. (v) The balance in loan from SSA Finance Corporation includes - 45,000 for interest accrued but not due. The loan is secured by hypothecation of Plant & Machinery. Loan is repayable in June 2028. (vi) Short-term borrowings include: Loan from CDC Bank (secured) ₹ 4,50,000Loan from related parties (unsecured) ₹ 54,000 (vii) Trade Receivables of 5,26,000 are due for more than 6 months. (viii)Bills Receivable for 58,000, maturing on 6 th May 2025, have been discounted on 15 th March 2025. (ix) The Company on the advice of an independent valuer revalued the freehold land at 40,50,000. (x) Inventory of finished goods includes loose tools costing - 1,02,000, which do not meet the definition of Property, Plant & Equipment as per AS 10. (xi) Claims against the Company amounting to 4,15,000 have not been acknowledged as debt. (xii) Balances with banks include - 24,000 with Vihar Bank, which is not a Scheduled Bank. You are required to prepare the Balance Sheet of Chia Limited as on 31 st March 2025 as per Schedule III of the Companies Act, 2013 (Ignore previous year figures).

Suggested Answer and Working Notes:

Chia Ltd. Balance Sheet as at 31 st March, 2025 Particulars Notes ₹ in lakhs Equity and Liabilities 1 Shareholders' funds a Share capital 1 39.36 b Reserves and Surplus 2 33.27 c Money received against share warrant 2.7 2 Non-current liabilities a Long-term borrowings 3 18.8 b Deferred tax liabilities (Net) 0.56 3 Current liabilities a Short-term borrowings 4 6.95 b Trade Payables 5.69 c Other Current Liabilities 5 1.86 d Short-term provisions 1.36 Total 110.55 Assets 1 Non-current assets a (i) Property, Plant and Equipment 6 67.3 (ii) Capital work in progress 11.4 b Non-current investments 7 6 2 Current assets a Inventories 8 6.02 b Trade receivables 9 11.57 c Cash and cash equivalents 10 8.26 Total 110.55 Notes to accounts ₹ in lakhs 1 Share Capital Authorized share capital 50,000 Equity Shares of 100each 50.00 Equity share capital Issued & subscribed & called up 40,000 Equity Shares of 100each 40.00 (Out of the above 5,000 shares have been issued for consideration other than cash) Less: Calls in arrears (0.64) 39.36 Total 39.36 2 Reserves and Surplus General Reserve 6.90 Securities premium 0.75 Capital reserve 12.3 Revaluation (0.20 + 9.62) 9.82 Profit & Loss 3.50 Total 33.27 3 Long-term borrowings Secured 10% debentures 5.00 Loan from SSA Financial Corporation (10.00-0.45) (Secured by hypothecation of Plant and Machinery) 9.55 Unsecured Loan-others 4.25 Total 18.80 4 Short term Borrowings Secured-Loans CDC bank 4.50 Unsecured Loan from related parties 0.54 Others 1.91 2.45 Total 6.95 5 Other current liabilities: Interest accrued but not due 0.45 Others 1.41 1.86 6 Property, plant and equipment Freehold Land 30.88 Add: Revaluation gain 9.62 40.50 Plant & Machinery 41.00 Less: Depreciation (14.20) 26.80 Total 67.30 7 Non-current investment Investment in debentures of Glad Ltd. 6.00 8 Inventories Loose tools 1.02 Goods in transit 1.35 Finished goods 3.65 Total 6.02 9 Trade receivables Debts Outstanding for a period exceeding six months 5.26 Other Amounts 6.31 Total 11.57 10 Cash and cash equivalents Cash at bank with Scheduled Banks 7.46 with others 0.24 7.70 Cash in hand 0.56 Other bank balances Total 8.26 Contingent Liabilities 1. Claims against the company of 4,15,000 have not been acknowledged as debt. 2. Bills receivable for 58,000 maturing on 6 th May 2025 have been discounted. (Not matured)

Topics: Preparation of Financial Statements

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