Following is the trial balance of Vinayak Ltd. as on 31st March 2026: Dr. ₹ '000 Cr. ₹ '000 Equity share capital (shares of 100 each) 7,500 General…

CA Intermediate · Advanced Accounting · PYQS · May 2026
Following is the trial balance of Vinayak Ltd. as on 31st March 2026: Dr. ₹ '000 Cr. ₹ '000 Equity share capital (shares of 100 each) 7,500 General Reserve 2,250 P&L A/c (on 1-04-2025) 1,125 Securities premium 600 10% Debentures 4,500 Calls in arrear 75 Plant and machinery at cost 12,360 Land at cost 12,000 Cash in hand 30 Cash in Bank 420 Sales 18,000 Trade payables 450 Trade receivables 1,800 Inventories (31-03-2026) 1,440 Purchases 6,000 Provision for Depreciation 2,250 Debenture interest 450 Factory expenses 1,200 Administrative expenses 675 Selling expenses 375 Suspense account 150 Total 36,825 36,825 Additional information: (a) The authorized share capital of the company is 1,20,000 shares of 100 each. (b) The company revalued the land at 1,44,00,000. (c) Equity share capital includes shares of 7,50,000 issued for consideration other than cash. (d) Suspense account of 1,50,000 represents cash received from the sale of some of machinery on 1 April, 2025. The cost of the machinery was - 3,60,000 and the accumulated depreciation thereon being - 3,00,000. The balance of Plant and Machinery given in the trial balance is before adjustment of sale of machinery. (e) Depreciation is to be provided on plant and machinery at 10% p.a. on cost. (f) Balance at bank includes - 75,000 with XYZ Bank Ltd., which is not a Scheduled Bank. (g) Make provision for income tax @ 40% (h) Trade receivables of 7,50,000 are due for more than six months. On the basis of the above information, you are required to prepare Vinayaka Ltd.'s Balance Sheet as on 31st March, 2026 and Statement of Profit and Loss with notes to accounts for the year ended 31st March, 2026 as per Schedule III (ignore previous year's figures).

Suggested Answer and Working Notes:

Vinayak Limited Balance Sheet as at 31st March 2026 Particulars Note No. (in '000) A. Equity and Liabilities 1. Shareholders' funds (a) Share Capital 1 7,425 (b) Reserves and Surplus 2 11,289 2. Non-Current Liabilities (a) Long Term Borrowings 3 4,500 3. Current Liabilities (a) Trade Payables 450 (b) Short- term provision 4 3,276 Total 26,940 Statement of Profit and Loss for the year ended 31st March 2026 Particulars Note No. (in '000) I. Revenue from Operations 18,000 II. Other Income 8 90 III. Total Income (I +II) 18,090 IV. Expenses: Purchases 6,000 Finance Costs 9 450 Depreciation (10% of12,000) 1,200 Other expenses 10 2,250 Total Expenses 9,900 V. Profit / (Loss) for the period before tax (III – IV) 8,190 VI. Tax expenses @40% 3,276 VII Profit for the period (V-VI) 4,914 Notes to Accounts Particulars (in '000) 1. Share Capital Equity Share Capital Authorised 1,20,000 Shares of 100/- each 12,000 Issued, Subscribed and Called-up 75,000 Shares of 100/- each 7,500 (Out of the above 7500 shares have been issued for consideration other than cash) Less: Calls in arrears (75) 7,425 2. Reserves and Surplus Securities Premium 600 Revaluation Reserve (14,400-12,000) 2,400 General Reserve 2,250 Surplus i.e. Profit & Loss Account Balance Opening Balance 1,125 Add: Profit for the period 4,914 6,039 11,289 3. Long-Term Borrowings 10% Debentures 4,500 4. Short-term provision Provision for tax 3,276 5. Property, plant & equipment Land Opening Balance 12,000 Add: Revaluation adjustment 2,400 Closing Balance 14,400 Plant and Machinery Opening Balance 12,360 Less: Disposed off (360) 12,000 Less: Depreciation [(2,250-300) + 1,200 (10% of 12,000)] (3,150) 8,850 Closing Balance 23,250 Total 6. Trade receivables Debtors outstanding for a period exceeding six months 750 Other debts 1,050 1,800 7. Cash and Cash Equivalents Cash at Bank With scheduled banks 345 With others (XYZ Bank Limited) 75 Cash in hand 30 450 8. Other Income Profit on sale of machinery Sale value of machinery 150 Less: Book value of machinery (360 - 300) (60) 90 9. Finance Costs Debenture Interest (10% of 4,500) 450 10. Other Expenses: Factory expenses 1,200 Selling expenses 375 Administrative expenses 675 2,250

Topics: Preparation of Financial Statements

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