The following balances are extracted from the Books of Flash Light Electric Co.

Question

The following balances are extracted from the Books of Flash Light Electric Co. Ltd. (i) Fixed Assets : Expenditure upto 1-1-2012 : (a) Land and Building Rs. 10,00,000. (b) Machinery Rs. 15,00,000. (ii) Additions during the years: Machinery Rs. 3,50,000. (iii) Depreciation Fund : (a) Machinery Rs. 3,00,000. (b) Building Rs. 1,00,000. (iv) Authorised Capital Rs. 50,00,000 divided into equity shares of Rs. 100 each. (v) Issued and fully paid up 20,000 equity shares of Rs. 100 each (including 2,500 equity shares issued during the year). (vi) 7

Explanation / Answer

Flashlight Electric Co. Ltd.

Balance Sheet as at 31st Dec., 2012

(As per Schedule VI to the Companies Act)

Liabilities Rs. Rs. Assets Rs. Rs.

Fixed Assets

Share Capital Land & Buildings

Authorised : 50,000 Equity (at cost) 10,00,000

shares of Rs. 100 each 50,00,000 Less : Depreciation 1,00,000 9,00,000

Issued, Subscribed & Machinery : (at cost) 15,00,000

Paid up : Additions during the year 3,50,000

20,000 Equity Shares of 18,50,000

Rs. 100 each fully paid 20,00,000   Less : Depreciation 3,00,000 15,50,000

Reserves & Surplus

Reserve Fund 5,00,000

Profit & Loss A/c 2,02,500 7,02,500

Secured Loans : Investments

7.5% Debentures Reserve Fund Investments

(Secured by a charge on at cost 5,00,000

fixed assets) 10,00,000 (Market value Rs. 5,25,000)

Unsecured Loans : Nil Current Assets and

Current Liabilities & Loans and Advances

Provisions Stock 3,02,500

Sundry Creditors 2,50,000 Sundry Debtors 4,50,000

Cash in hand 50,000

Cash at Bank 2,00,000 10,02,500

(assumed Scheduled)

39,52,500 39,52,500

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