Question

Sharp Ltd. was formed on 1st December, 2013, with a capital of Rs 5,00,000 divided into shares of Rs 10 each. It offered 80% of the shares to the public.The issue price was payable as follows :

30% of the face value per share was payable with application.

20% of the face value per share was payable with allotment.

The balance as and when required. The company did not call for the balance during the year. All the shares offered by the company were subscribed for. The company did not receive the allotment money on 3000 shares.

You are required to:

(i) Show the Share Capital in the Balance Sheet of the Company (prepared as per Revised Schedule VI of the Companies Act, 1956) at the end of the financial year. 

(ii) Prepare Notes to Accounts.

Under which heads and sub heads will the following items appear in the Balance Sheet of a company as per Revised Schedule VI of the Companies Act, 1956:

(i) Bills Receivable 

(ii) Interest accrued and due on debentures 

(iii) Trade Creditors 

(iv) Provision for Taxation 

(v) Stores and Spares

Answer 1

Balance Sheet of Sharp Ltd.(as on 1.12.2013)  

(i) Current Assets – Trade Receivables 

(ii) Current Liabilities – Other Current Liabilities 

(iii) Current Liabilities – Trade Parables 

(iv) Current Liabilities – Short term Provisions 

(v) Current Assets – Inventories