1 INDIAN ACCOUNTION STANDARDS-1

MODULE-02
PREPARATION OF FINANCIAL STATEMENTS (Ind AS 1)
1. You are given the following extracts of Ledger Balances
taken from Shankar Ltd. for the year ending 31 March,
2023 prepare a statement of Profit and Loss as per Ind
As 1.
Particulars Rs
Revenue from Operation 98,000
Other Income 2,000
Advertising 5,250
Salaries 27,000
Depreciation 2,800
Discount 1,000
Insurance 1,000
Interest on Debentures 1,000
Preliminary Expenses written off 500
Bad debts 500
Printing and Stationery 1,000
Cost of Materials Consumed 25,000
Tax at 25%

2. Prepare a statement of profit and loss as per Ind AS 1

from the following details of Kavya Limited for the year
ended 31st March, 2023
Particulars Rs
Sales 16,00,000
Purchase of Raw-materials 7,00,000
Commission Received 3,00,000
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2 INDIAN ACCOUNTION STANDARDS-1

Carriage Inwards 1,00,000

Returns Outwards 40,000
Opening Stock of Raw Materials 1,80,000
Closing Stock of Raw Materials 1,00,000
Rent Received 40,000
Salaries to Employees 2,00,000
PF Contribution to Employees 50,000
Interest on Bank loan 30,000
Interest on Debenture 30,000
Sundry Expenses 10,000
Depreciation 40,000
Income tax paid 75,000
Excise Duty 50,000
Consumables 80,000
Factory Expenses 60,000

3. The particulars are given for Sachithananda Limited for

the year ended 31st March 2023:
Particulars Rs
Purchases 6,00,000
Stock of Goods (01.4.2022) 80,000
Stock of Goods (31.3.2023) 90,000
Sales 1,00,000
Depreciation on Fixed Assets 10,000
Preliminary Expenses written off 8,000
Salaries to Employees 19,000
Rent of Show Room 12,000
Interest on loan 10,000
Discount received from Suppliers 5,000
Office Expenses 2,000

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3 INDIAN ACCOUNTION STANDARDS-1

Printing and Stationary 1,800

Carriage outwards 1,200
Advertisement 800
Income tax at 40%
4. Illustration. 4 question
Particulars Rs
Interest on Debentures 32,400
Travelling Expenses 15,000
Deliver Van Expenses 5,000
Bad debts 6,000
Discount Allowed 7,000
Salaries 26,000
Purchases 3,15,000
Opening Stock 75,000
Freight charges 8,000
Depreciation 25,000
Insurance 5,000
Commission Received 7,500
Sales 6,50,000
Share Transfer Fees 5,000
Tax rate at 35%

5. Under which heading and sub-headings will the

following items appear in the Balance Sheet of a
compnay as per Schedule III, Part-I of the Companies
Act, 2013?
(i) Capital Reserves
(ii) Goodwill
(iii) Sundry Debtors
(iv) Sundry Creditors
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4 INDIAN ACCOUNTION STANDARDS-1

(v) Loose Tools

(vi) Provision for Taxation

6. Under which heading and sub-heading will the following

items appear in the Balance Sheet of a Compnay as per
Schedule III, Part-I of the Companies Act, 2013?
(i) Debentures
(ii) Sinking Fund
(iii) Interest Accrued on Investment
(iv) Outstanding Expenses
(v) Bank Overdraft
(vi) Proposed Dividend

7. Under which heading and sub-headings will the

following items appear in the Balance Sheet of a
compnay as per Schedule III, Part-I of the Companies
Act, 2013?
(i) Bills Payable
(ii) Bills Receivable
(iii) Trade Marks
(iv) Work-in-progress
(v) Prepaid Insurance
(vi) Stores and Spare Parts

8. From the following particulars calculate Other Equity for

the year ending 31st March 2023.
(1) P&LA/c balance from last year * 62,500
(ii) Net Profit for the year before tax 5,40,000 (provision
for tax at 40%)
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(iii) Transfer to General Reserve 52,500, Dividend

Equalisation Fund 40,000 and development reserve
37,500
(iv) Dividend on 7.5% on preference shares ₹3,00,000
(v) Dividend at 12.5% on 50,000 Equity shares of ₹ 10 ₹
7.50 called-up (calls in arrears ₹ 13.000)

9. From the following Trial balance of MN Ltd as at 31

March 2023, prepare Balance sheet as per Ind AS using
the format given in Schedule III of Companies Act, 2023.
Particulars Debit
Plant, Property & Equipment 8,00,000
Intangible Assets 3,00,000
Current Investments 1,00,000
Other non-current Assets 2,00,000
Inventories 90,000
Cash and cash equivalent 4,00,000
Trade Receivables 1,00,000
Total 19,90,000
Particulars Credit
Share Capital 5,00,000
Capital Redemption Reserve 50,000
Non-current liabilities 8,00,000
Profit and Loss Account 40,000
Current liabilities 6,00,000
Total 19,90,000

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10 From the following Trial balance of Johnson Ltd as at 31

March 2023, prepare Balance sheet as per Ind AS using the
format given in Schedule III of Companies Act, 2023.
Particulars Debit
Cash at Bank 75,000
Non-current assets 50,000
Non-current investments 25,000
Land and Buildings 2,00,000
Furniture 50,000
Office equipment 25,000
Goodwill 50,000
Stock 1,00,000
Debtors 50,000
Total 6,25,000
Particulars Credit
Equity Share Capital 1,25,000
Reserves and Surplus 25,000
Non-current Liabilities 2,00,000
Current Liabilities 50,000
Staff provident Fund 50,000
Deposit from Public 50,000
Debentures 1,25,000
Total 6,25,000

11 From the following Trial Balance of Reddy Limited prepare

Balance Sheet of the company as on 31st March, 2023 as per
Ind AS 01
Debit Rs. Credit Rs.
Cash at Bank 1,50,000 Equity share capital 2,50,000
Non Current assets 1,00,000 Preference capital 2,50,000

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Non Current Investments 50,000 Other Equity 50,000

Land and Building 4,00,000 Non-current Liabilities 4,00,000
Furniture 1,00,000 Current Liabilities 1,00,000
Office Equipment 50,000 Staff Provident Fund 1,00,000
Goodwill 1,00,000 Deposits from Public 1,00,000
Stock 2,00,000
Trade receivables 1,00,000
Total 12,50,000 Total 12,50,000

12 From the following particulars, prepare a Balance Sheet of

MMC Ltd. as on 31st March, 2023 (giving all the heads and
sub-heads as per Ind AS 01)
If im 1000s
Share capital 50,000
Inventories 13,000
Other Equity 47,000
Tangible fixed assets 76,420
Current investments 2,400
Long-term borrowings 10,000
Capital work-in-progress 5,800
Long-term loans and advances 7,340
Short-term provisions 6,000
Other non-current assets 940
Trade receivables 3,600
Other current liabilities 1,500
Cash and cash equivalents 1,400
Intangible assets under development 800
Trade payables 2,500
Long-term provisions 1,000
Other current assets 8,300
Other Non current liabilities 2,000

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13 The following balances have been extracted from the

books of Rabin Ltd. as on 31st March, 2023,
Rs.
Share capital (equity shares of 10 each fully 10,00,000
paid)
Securities premium 1,00,000
12% Debentures 4,00,000
Trade payables 2,00,000
Proposed dividend 50,000
Debit in Statement of Profit & Loss 30,000
Investments in Govt. Bonds 4,00,000
Work-in-progress 1,00,000
Patents 40,000
Unclaimed dividend 10,000
Trade receivables 20,000
Public deposits 50,000
Plant and equipment 6,00,000
Furniture and fixtures 1,00,000
Office equipment 2,00,000
Stock-in-trade 2,60,000
Stores and spares 40,000
Expenses on issue of debentures 20,000

14 From the given trial balance, prepare the Balance Sheet of

Moonlight Ltd. as on 31st March, 2023 as per Ind AS 01
Dr Cr
Share capital (40,000 equity shares - 4,00,000
of 10 each)
Bills Receivable 90,000 -
10% Mortgage loan - 1,70,000
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Stores and spares 1,15,000 -

Debtors 1,66,000 -
Plant and Machinery 2,90,000 -
Goodwill 40,000 -
Provision for tax - 26,000
General Reserve - 1,30,000
Cash in hand 18,000 -
Calls-in-arrear (at2 per share) 2,000 -
Marketable securities 5,000 -

15 From the following particulars of Aravind Ltd., prepare a

Balance Sheet as on 31st March, 2023 as per Ind AS 01:
Rs Rs
Equity share capital 7,00,000 Stock-in-trade 85,200
9% preference share 2,00,000 Trade payables 71,000
capital Provision for taxation 1,40,000
Land and buildings 5,60,000 Plant and machinery 10,68,000
General reserve 3,20,000 Preliminary expenses 12,400
6% Debentures 3,00,000 Cash and bank 49,800
Surplus from profit and 1,38,200 Furniture and fixtures 25,100
loss
statement
Trade receivables 68,700
The following further information is supplied to you:

(1) The authorised share capital of the company consists of

1,00,000 equity shares of ₹10 each and 5,000, 9% preference
shares of ₹100 each.

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10 INDIAN ACCOUNTION STANDARDS-1

(ii) The debentures are secured by a floating charge on the

assets of the company.

16 The trainee accountant of John Smith & Co. Ltd., who has
gained a little knowledge of accounts, has drafted the
following balance sheet:
Assets Rs Liabliites Rs
Land and building 1,09,500 Capital - 18,000 equity 1,80,000
Fixed deposit accepted 15,000 shares
Furniture 30,000 of ₹10 each full called
Goodwill 10,000 up 10,000
Stock 24,000 General reserve 35,000
Creditors for goods 9,000 10% Debentures 22,000
Plant and equipment 25,000 Provision for taxation 18,000
Cash 38,000 Securities premium 8,000
Bills payable 7,000 Profit and loss balance
Bank 72,000 (Cr.) 15,000
Calls-in-arrear at 2 per 2,000 Investment in Zee Ltd.
share shares 7,000
Bills receivable 14,000
Proposed dividend 12,000
Capital reserve 9,000
Debtors for goods 11,000
Unclaimed dividend
Authorised capital -
20,000 equity shares of
₹10 each Shares 500
forfeiture
3,41,500 3,41,500

17 From the following trial balance prepare Financial

Statements of Nishi Trading Company Limited for the
accounting period 31 March, 2023

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11 INDIAN ACCOUNTION STANDARDS-1

Dr Cr
Sales 6,54,00
General reserve 0 12,000
Opening Inventories
Trade payables 58,400
Purchase of Goods 25,890
Depreciation on Property, Plant and 2,32,08
Equipment 0
Trade Receivables 15,500
Salary Expenses
Provision for Bad and Doubtful Debts 85,000 5,000
Cash and Cash Equivalents 98,470
Property, Plant and Equipment
Carriage Outwards 35,500 48,880
Amortisation on Property, Plant and 1,55,00
Equipment 0
Sundry Expenses
Share Capital (equity shares of ₹ 100 18,500
each)
P&LA/c 42,860 7,000
Preliminary Expenses 2,50,00
Power Fuel 0
Bad Debts
Intangible Assets
20,000
54,200
3,500
86,000
Total 9,53,89 9,53,890
0
Adjustments

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12 INDIAN ACCOUNTION STANDARDS-1

1. Closing Inventories 28,880.

2. Create Provision for taxation at 30%.
3. Directors proposed dividend of 15%.
4. Write off 1/5th of Preliminary Expenses.
5. Write off 2,500 as Bad debts and maintain provision for
Bad and doubtful debts at 10% on Debtors.

18. From the following trial balance prepare Financial

Statements of MAS Trading Company Limited for the
accounting periods 31st March 2023.
Dr Cr
Share Capital (Equity Shares of ₹ 10 3,00,000
each)
Securities Premium 60,000
General reserve 12,500
Surplus 35,000
15% Debentures 1,25,000
Interest on Debentures 18,750
Trade Receivables & Trade Payables 95,000 59,000
Provision for Taxation 49,000
Advances received from Customers 14,500
Data Processing Equipment 1,59,000
Plant & Machinery 1,44,450
Patents and Copyrights 1,75,000
Inventories 95,000
Cash and Bank Balance 37,700
Advance paid to supplier 75,000
Purchases and Sales 4,50,000 8,70,000
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Salary & Wages 95,000

Contribution to PF and Other Funds 11,400
ESI Expenses 4,500
ESI Payable 2,500
Rent Expenses 45,000
Advertisement and Sales Promotion 55,000
Expenses
Travelling Expenses 39,800
Testing Fee 45,900
Commission Received 19,000
Total 15,46,00 15,46,500
0
Adjustments
1. Closing Inventories 48,500.
2. Prepaid Advertisement 25,000.
3. Write off 1/ 5th of Patents and Copyrights and Provide
depreciation at 10% on Data Processing equipment and 15%
on Plant and Machinery.
4. Provide for taxation at 30%.
5. Directors proposed a dividend of 5%.

19. Prepare the Financial Statements of Hindusthan Company

Ltd., from the following trial balance as on 31 March 2023
Debit Balance:
Calls in Arrears 5,000
Premises 7,50,000
Machinery 1,50,000

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Furniture 50,000
Purchases 6,80,000
Wages 1,25,000
Salaries 60,000
Interim Dividend 20,000
Goodwill 2,00,000
Debtors 60,000
Bills Receivable 38,000
Bad Debts 2,000
Debenture Interest (upto 30.9.2022) 20,000
Stock on 1.4.2022 41,000
22,01,000
Credit Balance:
Share Capital 5,00,000
Sales 10,00,000
Reserve Fund 1,80,000
Profit & Loss Account 35,000
Creditors 75,000
10% Debentures 4,00,000
Bills payable 10,000
Reserves for doubtful debts (1.4.2022) 1,000
22,01,000
Adjustments:
1. The stock on 31.3.2023 was valued at ₹80,000
2. Depreciate machinery and furniture by 10%.
3. Maintain Reserve for Doubtful Debts at 5% on debtors.
4. The directors proposed a final dividend at 15%.
5. The debenture interest is unpaid for 6 months.

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20. Premier Company Ltd, had an authorised capital of ₹

6,00,000 in equity share of t 10 each. Its trial balance on
31.03.2023 is given below:
Calls in Arrears 7,500
Premises 3,00,000
Plant and Machinery 3,30,000
Interim Dividend 37,500
Stock (1.4.2022) 75,000
Fixtures 7,200
Debtors 87,000
Goodwill 25,000
Cash in hand 760
Cash at Bank 39,900
Purchases 1,85,000
Preliminary Expenses 5,000
Wages 84,865
General expenses 16,835
Freight and Carriage 13,115
Salaries 14,500
Directors Fees 5,725
Bad Debts 2,100
Debenture interest paid 9,000
Called up capital 4,00,000
6% Debentures 3,00,000
Profit & Loss Account (1.4.2022) (Cr.) 14,500
Bills payable 38,000
Creditors 50,000
Sales 1,15,000
General Reserve 25,000

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Bad debts provision (1.4.2022) 3,500

Adjustments
1. Depreciate plant and machinery by 10%.
2. Write-off preliminary expenses *500.
3. Provide for debenture interest due.
4. Of the debtor ₹500 are further bad.
5. Provide for Reserve for doubtful debts at 5% on Debtors.
6. Closing stock 95,000.
Prepare Statement of Profit and Loss for the year ended 31st
March 2023 and Balance sheet ar per Ind AS 01 of the
Companies Law Act 2013.

21. Mahendra Manufacturing Company, Mangalore was

registered with a nominal capital of 6,00,000 in Equity Shares
of ₹10 each. The following is the list of balances extracted
from the books on 31.3.2023.
Dr Cr
Furniture 7,200
Calls in Arrears 7,500
Plant and Machinery 3,00,000
Premises 3,30,000
Interim Dividend 37,250
Debtors 75,000
Stock (1.4.2022) 87,000
Goodwill 25,000

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Cash in hand 750

Cash at Bank 60,900
Purchases 1,85,000
Preliminary expenses 5,000
Wages 84,865
General Expenses 6,835
Advertising 10,000
Freight and Carriage 13,115
Salaries 14,500
Directors Fees 5,725
Bad Debts 2,110
Debenture Interest Paid 9,000
Subscribed Capital 4,00,000
6% Debentures 3,00,000
Profit/Loss Account 14,250
Creditors 30,000
Bills Payable 50,000
Sales 4,15,000
General Reserve 25,000
Bad Debts Reserve (1.4.2022) 3,500
Loan 21,000
Total 12,66,75 12,66,750
0
Adjustments

1. Depreciate Plant and Machinery by 5%, Building by 2% and

Furniture by ₹1,200.
2. Write off ₹1,000 from preliminary expenses.
3. Provide half years debenture interest.

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18 INDIAN ACCOUNTION STANDARDS-1

4. R.D.D. on 31.3.2023 should be equal to 1% on sales.

5. Outstanding Directors fee ₹275.
6. Goods of value of ₹1,500 were distributed as free samples
during the year but no entry in this respect has been made.
7. Closing stock ₹95,000.
Prepare Financial Statements of the company as per Ind AS
01.

22. The following is the Trial Balance of Bharat Company Ltd.

as on 31.3.2023:
Dr Cr
Paid-up Capital 1,00,000
Reserve Fund 17,000
Provident Fund 3,000
Goodwill 15,000
Machinery 25,000
Livestock 5,000
Buildings 37,000
8% Mortgage loans (Debentures) 30,000
Sundry Debtors 45,000
Sundry Creditors 16,000
Opening Stock 46,000
Bills Receivable and Bills Payable. 4,000 5,490
Advance Payment of Income Tax 1080 4,000
Cash at Bank 11,000
Purchase of Raw Materials 1,83,700
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Sales 88,000 1,000

Returns 2,400 1,000
Discount 2,000
Investments 8,000
Manufacturing Wages 32,000
Carriage Inwards 1,000
Factory Expenses 14,000
Office Salary 6,500
Office Furniture 5,000
Preliminary Expenses 5,000
Bad Debts 1,500
Provident Fund Contribution 500
Directors Fees 1,200
Interest on Debentures 1,200
Dividend on Investment 4,80
Profit and Loss Account (1.4.2022) 2,630
Total 3,60,30 3,60,300
0
Prepare Financial Statements for the year ended 31.03.2023
and BalanceSheet Companies Act 2013 date after taking into
account the following: as per

1. Closing Stock was valued at 38,380.

2. Write off 50% of preliminary expenses.
3. Interest on Mortgage debenture is paid for 6 months up to
30th September 2023.

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20 INDIAN ACCOUNTION STANDARDS-1

4. Provide depreciation machinery at 10%, Building at 5% and

office furniture at 6%.
5. Transfer to Reserve Fund 2,000.

23. The following is the Trial Balance of Bharat Company Ltd.

as on 31.3.2023
Dr Cr
Share Capital 3,00,000
Reserve Fund 1,50,000
Furniture 40,000
Building 80,000
Wages 50,000
Salaries 20,000
Debtors 1,60,000
Bills Receivable 60,000
Interim Dividend 30,000
Audit Fees 10,000
Director's Fees 5,000
Light and Water 10,000
Printing and Stationery 12,000
Purchases 2,40,000
Sales 4,80,000
Loose Tools 40,000
P&L Appropriation Account 20,000
Cash at Bank 50,000
Foreited Share Capital Account 10,000
Calls in Advance 20,000
General Expenses 10,000
Goodwill 95,000
Stock (1.4.2022) 60,000
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21 INDIAN ACCOUNTION STANDARDS-1

Investments 1,50,000
Machinery 40,000
Creditors 1,80,000
Returns 20,000 10,000
Bills Payable 20,000
Cash in hand 38,000
Securities Premium 30,000
Total 12,20,00 12,20,000
0
Adjustments
1. Stock on 31.3.2023 was valued of ₹ 90,000.
2. Depreciate machinery at 10% and buildings at 5% p.a.
3. Provide Reserve for Doubtful Debts at 5% on Debtors.
4. Transfer 25,000 to Reserve Fund.
5. Director's recommended dividend of 10% for the year. 6.
Make provision for taxation 10,000.
Prepare Financial Statements of the company as per Ind AS
01 of the New Companies Act 2013.

24. Following are the balance of NSK Ltd., as at 31st March

2023. You are required to do the Financial Statements of the
company after taking additional information into
consideration.
Particulars Amount Particulars Amount
Premises 30,72,000 Share capital 40,00,000
Plant 33,00,000 12% Debentures 30,00,000
Opening Stock 7,50,000 P&L Account 2,62,500

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22 INDIAN ACCOUNTION STANDARDS-1

Debtors 8,70,000 Creditors 7,70,000

Goodwill 2,50,000 Sales 41,50,000
Cash & Bank 3,88,500 General Reserve 2,50,000
Calls in arrears 75,000 Reserve for Doubtful 35,000
Interim Dividend 3,92,500 Debts (1/4/2022)
(Including CBT)
Purchases 18,50,000
Patents 50,000
Wages 9,79,800
General Expenses 68,350
Salaries 2,20,250
Bad Debts 21,100
Debenture interest paid 1,80,000
Total 1,34,67,500 Total 1,34,67,500

Adjustments

1. Closing stock is valued at 10,50,000

2. Depreciate plant at 15%
3. Write off ₹ 5,000 from preliminary expenses.
4. Half yearly debenture interest is due.
5. Write off₹20,000 further Bad debts and unused new
Reserve for Doubtful Debts at 5% on debtors.
6. Transfer ₹25,000 to General reserves.

25. Following is the Trial Balance of Shakti Company Ltd. on

31st March 2023:
Debit Balance Amount Credit Balance Amount
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23 INDIAN ACCOUNTION STANDARDS-1

Stock (1.4.2022) 75,000 Sales 3,50,000

Purchases 2,45,000 Profit & Loss Accounts
Wages 50,000 (31.3.2022) 15,000
Discount 7,000 Share Capital in Shares 1,00,000
Salaries 7,500 of ₹10 each
Rent 4,950 Sundry Creditors 17,500
Sundry Expenses 17,050 Reserve Fund 15,500
(including Insurance) Discount 5,000
Dividend paid (including
CDT) 5,000
Interim Dividend
(including CDT) 4,000
Debtors
Machinery 37,500
Cash 29,000
Bank 10,200
Loan to an Employee 6,000
Bad Debts 3,250
1,580
Total 5,03,030 Total 5,03,030

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