The following is the Trial Balance of Falgun Ltd., as on 31st March, 2025: Particulars Debit Amt. int. (₹) Credit Amt. int. (₹) Equity Share Capital…

Statement of Profit and Loss of Falgun Ltd. for the year ended 31st March, 2025 Particulars Notes ₹ I. Revenue from operations 8,46,000 II. Other income (Rent income) 24,000 III. Total Income (I + II) 8,70,000 IV. Expenses: Cost of materials consumed / Cost of purchases 9 2,42,200 Changes in inventories of finished goods, work-in-progress and Inventory-in-Trade - Employee benefits expense 10 72,000 Finance costs (Interest on debentures) 11 20,000 Depreciation and amortization expenses 12 1,80,000 Other expenses 13 2,54,800 Total expenses 7,69,000 V. Profit (Loss) for the period (III - IV) 1,01,000 Balance Sheet of Falgun Ltd. as at 31st March, 2025 Particulars Note No ₹ Equity and Liabilities 1 Shareholders' funds a Share capital 1 14,00,000 b Reserves and Surplus 2 6,26,000 2 Non-current liabilities a Long-term borrowings 3 8,14,000 3 Current liabilities a Short term borrowings 4 1,00,000 b Trade Payables 72,000 c Other current liabilities 5 79,000 d Short term provisions Total 30,91,000 ASSETS 1 Non-current assets a Property, plant and equipment 6 22,30,000 2 Current assets a Inventories 1,12,000 b Trade receivables 7 3,10,000 c Cash and bank equivalents 8 4,39,000 d Short term loans & advances Total 30,91,000 Note: There is a Contingent Liability for bills discounted but not yet matured amounting - 35,000. Notes to accounts: ₹ 1 Authorised capital: 10,000, 10% preference shares of 100 10,00,000 20,000 Equity shares of 100each 20,00,000 30,00,000 Issued and subscribed capital: 4,000, 10% preference shares of 100each fully paid 4,00,000 10,000 Equity shares of 100each, fully paid 10,00,000 (of the above 2,500* shares have been issues for consideration other than cash) 14,00,000 2 Reserves and Surplus Securities premium 50,000 Revaluation reserve 1,50,000 General Reserve 2,85,000 4,85,000 Surplus (Profit & Loss balance) Opening balance 40,000 Profit for the year 1,01,000 1,41,000 Total 6,26,000 3 Long-term borrowings Debentures 2,000 10% Debentures of 100each 2,00,000 Secured: Term Loans 6% Loan from State Finance Corporation [repayable after 3years (4,50,000 – 36,000 for interest accrued but not due)] (secured by hypothecation of Plant and machinery) 4,14,000 Others Bank overdraft from Nationalized bank (secured by hypothecation of stocks) 2,00,000 Total 8,14,000 4 Short-term borrowings Loan from Directors 1,00,000 5 Other current liabilities Unclaimed dividend 23,000 Interest on Debentures 20,000 Interest accrued but not due on loans (SFC) 36,000 79,000 6 Property, plant and equipment Land 7,00,000 Add: Revaluation Adjustment 1,50,000 8,50,000 Plant & Machinery 14,70,000 Less: Provision for depreciation (3,00,000) 11,70,000 Furniture 4,00,000 Less: Provision for depreciation (1,90,000) 2,10,000 Total 22,30,000 7 Trade receivables Debts outstanding for a period exceeding six months 46,000 Other Debts 2,64,000 3,10,000 8 Cash and cash equivalents Cash at bank with Scheduled Banks (3,05,000 - 55,000) 2,50,000 with others 55,000 4,39,000 9 Cost of materials consumed/Cost of purchases Adjusted purchases 2,25,000 Carriage inward 17,200 2,42,200 10 Employee benefit expense Salaries 72,000 11 Finance cost Debenture interest 20,000 12 Depreciation and amortization expenses Plant and Machinery 1,10,000 Furniture 70,000 1,80,000 13 Other expenses Misc. expenses (10,200-5,000) 5,200 Audit fee 5,000 Selling & Distribution expenses 46,600 Director's fee 40,000 Travelling expenses (including foreign tour) 1,30,000 Office expenses 28,000 2,54,800 Notes: The final dividend will not be recognized as a liability at the balance sheet date (even if it is declared after reporting date but before approval of the financial statements) as per Accounting Standards. Hence, it has not been recognized in the financial statements for the year ended 31 March, 2025. Such dividends will be disclosed in notes only.Since Bonus issue is in proposal state, no adjustment has been made in the given answer.