Abstracts from Accounting Policies:

(i) During the year sales of goods of ₹ 100 crore (cost ₹ 80 crore on approval has been included in sales revenue).

(ii) Advance from a customer ₹ 30 crore already included in the other revenue for consultancy to be provided over a total period of 15 months out of which nine months fall in next financial year.

(iii) Debtors include ₹ 75 crore as an advance to a supplier.

(iv) Goodwill is likely to realize the benefits over a period of six years including the current year but it was not written off during the year.

(v) Closing stock has the market value of ₹ 1,800 crore but it has been shown at the cost in the balance sheet.

(vi) Cutlery includes an item of book value ₹ 50 crore that should have been discarded so far but has not been effected.

(vii) Provision for tax has been made during the year out of current profits.

(viii) ₹700 crore was transferred to general reserve out of current year’s profits.

Discussion Question

Rework the financial results and prepare the balance sheet making necessary assumptions.

Transcribed Image Text:

Aaditya Industries Ltd Balance Sheet as on March 31, 2010 ( in crore) Assets Liabilities Authorizes Share Capital 10,000 crore equity shares of 10 each Issued and subscribed share capital 6,000 crore equity shares of 10 each fully called Less: calls in arrear Reserves and surplus Profit and loss balance 60,000 2,405 Amount 1,00,000 57,595 Fixed Assets Land at cost Freehold Premises Furniture & fixtures Glass and jars Linen Cutlery Investments Amount 4,000 46,500 9,000 1,000 800 400 3,885