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Financial Statements of a Company CA Foundation Notes

Financial Statements of a Company – CA Foundation, CPT notes, PDF

This article is about the Company Accounts – Financial Statements of a Company for CA foundation CPT students. we also provide pdf file at the end.

Financial Statements of a Company

Financial Statements of a Company

Requirements & Formats for preparation of Final Accounts as per Companies Act

  1. Books of Account etc. Section 128: Every Co. shall keep at its registered office, books of account and other relevant books and papers and financial statement for every financial year which gives true and fair view of the state of affairs of the Co., including branches. It shall be kept on accrual basis and by double entry system. It can be maintained on electronic mode also. Such books of account & vouchers shall be maintained in good order for minimum 8 (eight) previous financial year.
  2. As per section 2(40) Financial Statement includes (i) Balance-sheet (ii) Profit & loss A/c (iii) Cash Flow State­ment (iv) Statement of Changes in Equity (v) Explanatory Notes.

Note: One Person Co., Small Co., & Dormant Co. may not prepare Cash Flow Statement.

  1. As per section 2(41) Financial Year should be ending on 31st March every year.
  2. Balance Sheet should be in the Vertical Form given in Part-I of Schedule III to the Companies Act, 2013 [u/s. 129(1)]
  3. Profit & Loss Account should be in the Vertical Form given in Part-II of Schedule-Ill [u/s. 129(1)]

An operating cycle is the time between acquisition of asset for processing and their realisation in cash. Where the normal operating cycle cannot be identified, it is assumed to have a duration of 12 months.


Applicable for Financial year commencing on or after 1.4,2014

Important Points



PointsRequirements of Schedule-Ill
1.Schedule III vs. Accounting Stan­dard who overrides the otherAccounting standard overrides Schedule III as far as recognition, measurement, clas­sification and presentation are concerned. But disclosure requirement in Schedule LU and Companies Act are in addition to what is required by Accounting Standard.
2.Parts of Schedule III: ContentsI.     Balance-sheet: Vertical only.

II.    Statement of Profit and loss

3.Balance-SheetVertical (or top to bottom)

Asset – liability, classified in to current non-current

4.Statement of Profit & LossVertical format

Expenses classified nature wise. Multiple step format

5.Current Asset includes (If it satisfies any of this criteria)a.    expected to be realized, sold or consumed in the Co’s normal operating cycle or

b.    held primarily for trading

c.    expected to be realized within 12 months after the reporting date

d.    cash & cash equivalent.

6.Non-current AssetAll assets Other than above are non-current asset.
7.Current Liability includes (If it satisfies any of this criteria)a.    expected to be settled in the Co’s normal operating cycle

b.    held primarily for trading

c.    due to be settled within 12 month after the reporting date

d.    Co. doesn’t have an unconditional right to defer settlement atleast for 12 months after the reporting date.

8.Non-current LiabilityAll liabilities Other than above are non-current liability.
9.MaterialityItem of Income or Expense exceeding 1% of Revenue from operation or Rs. 1,00,000 whichever is higher disclosed separately.
10.Unit of Measurement

Turnover less than Rs. 100 crore

Turnover Rs. 100 crore or more

May be rounded off as below:

In hundreds or thousands or lakhs or millions or decimals thereof

In lakhs, millions or crores or decimals thereof.

11.Details presented in Notes to AccountsNarrative descriptions, details & break-ups be given in Notes to Accounts
12.Balance-sheet & Profit & Loss items be cross referencedBe cross referenced to information in notes to Account
13.Contingent liabilities (not to be recognised)Disclosed in notes as: Claims against company, Guarantees, Others
14.Commitments (not to be rec­ognised)Disclosed in notes as: Contracts remaining to be executed on capital commitment, Uncalled liability on partly paid shares & investments held, Other commitments.
15.Debit balance in P&L a/cDeduct from surplus even if net result is negative & show in Reserves & Surplus in balance sheet.
16.Miscellaneous Expenditure to the extent not written off.No separate line item in Schedule DI.

But as Accounting Standard requires deferral of certain expenses, this head can be created. As per Guidance Note show in other current or non-current asset depending upon the period of amortisation.

Expenses deferral of which is not in accordance with Accounting Standard shall be adjusted surplus.

17.P&L Appropriations: Dividend, transfer to reserves etcShown in Surplus in Balance sheet. No separate appropriation in or below Profit & Loss account.
18.Proposed DividendNo requirement to show in balance sheet/Profit & Loss account. Only disclosure in notes to accounts required.
19.Recognition of dividends declared by subsidiary companiesNo separate mention, hence dividends declared by subsidiary companies will be recognized as per AS 9 on same criteria as applicable to dividends declared by other companies.
20.Money received against share warrantsSeparate disclosure as part of shareholders funds in Balance sheet.
21.Share Application Money received, Pending allotmentRefundable portion is shown as other Current Liability and Balance is shown sepa­rately from equity.
22.Disclosure of Share option out­standing account.To be disclosed as part of reserves & surplus.
23.Authorised Share capitalNumber and amount be disclosed for each class of shares.
24.Share forfeiture account balanceShown in share capital
25.Securities convertible into equity/ preference sharesTerms of issue and dates of conversion in descending order from oldest to the latest date be disclosed in share capital.
26.Disclosures of shares in the compa­ny held by company’sholding com­pany/ ultimate holding companyDisclosure required.

It seems that auditor will have to verify these disclosures. He cannot accept the dis­closures as certified by management.

27.Disclosure of calls unpaidCalls unpaid by directors and officers to be shown distinctly
28.Disclosures regarding (i) shares allotted for’ consideration other than cash, (ii) bon us shares allotted and (iii) shares bought backA company shall, inter alia, disclose in the notes to accounts the following for the period of five years immediately preceding the date as at which the Balance Sheet is prepared: (For example in Balance-sheet as on 31.03.2015 disclose following which took place between 1.4.2010 to 31.3,2015) Aggregate number and class of shares:

♦     allotted as fully paid up pursuant to contract(s) without payment being received in cash.

♦     allotted as fully paid up by way of bonus shares.

♦     bought back.

29.Disclosure of a reconciliation of the number of shares outstanding at the beginning and at the end of the reporting periodDisclosure required in notes to account.
30.The rights, preferences and re­strictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital.Disclosure required in notes to account.
31.Shares in the company held by each shareholder holding more than 5 per cent shares specifying the number of shares heldDisclosure required in notes to account.
32.Loans (Liability)Classified as long term & short term and then secured & unsecured. Loans from related parties be disclosed separately. Amount of loans guaranteed by directors or others be disclosed.

Current maturities i.e. instalment due within 12 month out of long term loans & leases are shown in other current liability. Similarly unpaid matured deposits & unpaid matured debenture together with interest thereon be shown in other current liability.

33.Period and amount of continuing default in long term loans as on the Balance-sheet date.Requires disclosure separately.

In case of short term borrowings the word used is default instead of continuing default.

34.Interest accrued and due

Interest accrued but not due

Shown as other Current Liability

Shown as other Current Liability

35.Fixed Assets (tangible as well as intangible)Should be shown at original cost & net carrying amount at the beginning as well as at the end giving additions, deletions, depreciation/amortisation etc..
36.Profit on Revaluation of Fixed Assets.Should be credited to Revaluation Reserve A/c & treated like a Capital Reserve.
37.Classification of intangible assetsClassification shall be given as:

(a) Goodwill.

[b)   Brands/trade marks.

(c)   Computer software.

(<7) Mastheads and publishing titles.

(e) Mining rights.

(f) Copyrights, and patents and other intellectual property rights, services and operating rights.

(g)   Recipes, formulae, models, designs and prototypes.

(h)   licenses and franchise.

(i) Others (specify nature).

38.Capital AdvancesShown as Long Term Loans & Advances
39.Long term & Short term loans & advances, Other non-current asset, and Trade receivableShould be sub-classified as secured good, unsecured good and debts considered doubtful and less allowances for Bad & Doubtful debts.
40.Debts (Long term loans & advanc­es, other non-current asset, Trade receivable & Short term loans & advances) due by directors or officersDisclose separately dues by directors or officers of the company severally or jointly with any other person or by firms or private companies in which any director is a partner or a director or a member.
41.Long term & Short term loans & advances to related parties.Disclose separately.
42.For Current as well as non-current investment.Disclosure in notes should be made of Aggregate amount & market value of quoted investment, Aggregate amount of unquoted investment and aggregate amount of provision made for diminution.
43.Non-current Investment.Carried at other than cost and basis of valuation shall be disclosed separately.
44.For current investmentBasis of valuation of individual investment shall be disclosed.
45.Trade receivable should be clas­sified as:More than 6 months old from the date they became due for payment Other debts.
46.Bills receivables and Bills payable drawn/accepted on account of trade transactionsShould be included in trade receivable and trade payable. Other bills receivable may be shown in Short term loans & advances or Other current assets.

Other bills payable should be shown in other current liability.

47.Disclosure of cheques on hand an d drafts on handDistinct disclosure required as part of “Cash and cash equivalents”.
48.Bank Deposits with over 12 months maturity, Earmarked bank balanc­es, Bank balance held as margin money & held security against borrowings etc.Shown Separately in cash and cash equivalent.
49.Revenue from Operation in case of a Finance companyShall include revenue from: Interest Other financial services
50.Revenue from Operation in case of Other companyShall include revenue from: Sale of products, Sale of services, Other operating rev­enues Less: Excise duty
51.Other income shall includeInterest income, Dividend income, Net gain/loss on sale of investments, Other non-operating income (net of directly attributable expense)
52.Following break-up of Finance Cost should be given:Interest Expensexxx
Other borrowing costxxx
Applicable net gain/loss on foreign currency transaction/translationxxx
A company shall disclose by way of notes additional information regarding aggregate expenditure and income on the following items:-
53.Employee Benefits ExpensesShowing separately (i) salaries and wages, (ii) contribution to provident and other funds, (iii) expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP), (iv) staff welfare expenses.
54.Payment to Auditors should be shown under following details:As Auditor

for Taxation matters

for Company taw matters for Management Services

for Other services

for reimbursement of expenses

55.Gain/loss on foreign exchange transactionTo the extent considered as finance cost be shown in finance cost in P&L, other part be shown in other income or other expense as the case may be.
56.Expenditure on each of the follow­ing item, separately for each itemConsumption of stores & spare parts, Power & Fuel, Rent, Repairs to building, Repairs to machinery, Insurance, Rates & taxes, Miscellaneous expenses.
57.Items of Extraordinary nature and Exceptional itemsShould be shown separately in P & L A/c and details be given in notes.
58.Prior period itemsShould be shown separately in the notes and can be shown in other income/other expense as the case may be in P & L a/c.
59.Amount transferred to Reserves & withdrawn from ReservesShall be disclosed.
60.Amount transferred to Provisions & withdrawn from Provisions as no longer required.Shall be disclosed.
61.Dividend from subsidiary com­pany & provision for losses of subsidiary companyShall be disclosed.
62.In case of manufacturing com­paniesDisclose under broad heads: Raw material & Goods purchased.
63.In case of trading companiesDisclose under broad heads: Purchases of Goods traded.
64.In case of service companiesDisclose under broad heads: Gross income derived from rendering or supply of services.
65.In case of companies which falls under more than one of the above categoriesDisclose under broad heads: purchase, sale & consumption of raw material and Gross income from rendering of services.
66.In case of other companiesDisclose under broad heads: Gross income derived.
67.In case of all companiesWork-in-progress under broad heads
68.Value of Imports calculated on CIF basisIn respect of Raw materials, Component & spare parts and Capital goods.
69.Expenditure on foreign currencyOn account of royalty, know-how, professional & consultation fees, interest and other matters.
70.Value & percentage of consump­tion of imported & indigenousRaw material, spare parts & components
71.Remittance in foreign currencies on account of dividendMention total number of non-resident share-holders and number of shares held by them and the year to which dividend relates.
72.Earning in foreign exchange clas­sified under the following headsExport of goods calculated on FOB basis.

Royalty, know-how, professional & consultation fees.

Interest & dividend

Other income indicating the nature thereof.




Name of the Company ……….

Balance Sheet as at ……….

(Rupees in ……….)



Figures as at the end of the current report­ing periodFigures as at the end of the previous reporting period
(1)Shareholders’ funds

(c) Share capital

(b)   Reserves and surplus

(c)   Money received against share warrants

(2)Share application money pending allotment
(3)Non-current liabilities

(a)   Long-term borrowings

(b)   Deferred tax liabilities (Net)

(c)   Other long term liabilities

(d)   Long-term provisions

(4)Current liabilities

(a) Short-term borrowings

(b)   Trade payables

(c)   Other current liabilities

(d)   Short-term provisions

(1)Non-current assets

(a) Fixed assets

(i) Tangible assets

(ii) Intangible assets

(iii) Capital work-in-progress

(iv) Intangible assets under development

(b)   Non-current investments

(c)   Deferred tax assets (net)

(d)   Long-term loans and advances

(e)   Other non-current assets

(2)Current assets

(a) Current investments

(b)   Inventories

(c)   Trade receivables

(d)   Cash and cash equivalents

(e)   Short-term loans and advances

(f) Other current assets





Name of the Company ………………..

Profit and loss statement for the year ended ………………..



Figures for the current reporting periodFigures for the previous reporting period
I.Revenue from operations
II.Other income
III.Total Revenue (I + II)


Cost of materials consumed
Purchases of Stock-in-Trade
Changes in inventories of finished goods, work-in progress and Stock-in-Trade
Employee benefits expense
Finance costs

Depreciation and amortization expenses

Other expenses

V.Total Expenses
VI.Profit before tax (III-V)
VII.Tax expense
VIII.Profit (Loss) for the period (V-VI)


Illustration 25.1: R Ltd. was incorporated with a nominal capital of Rs. 5,00,000 in equity shares of Rs. 1 0 each. On 31st March, 2002 25,000 shares were fully called up. The following balances were extracted from the ledger of the company as on 31st March, 2002:           ‘

Sales            4,25,000Bonus10,500
Wages (productive)70,000Creditors35,200
Discount allowed4,200Plant & Machinery80,500
Discount received3,150Furniture17,100
Insurance up to 30.6.20026,720Cash at Bank1,34,700
Salaries18,500General Reserve25,000
Rent6,000The loan from managing director15,700
General expenses8,950Bad debts3,200
Profit and loss account6,220Calls in arrears5,000
Printing and Stationery2,400

Required:- Prepare Financial Statements for the year ended 31st March, 2002. The following further information is given to you:

(a)   Closing stock was Rs.91,500.

(b)   Depreciation is to be charged on plant and machinery and furniture at 15% and 10% respectively.

(c)   Outstanding liabilities on 31st March, 2002 were:

Wages Rs.5,200; Salary Rs.1,200 and Rent Rs.600

(d)   Dividend for the year ended 31st March, 2002@ 1% is to be provided.

(e)   Make a provision for taxation @35% and for Corporate Dividend Tax @ 10%.

Solution 1:

Name of Company R Ltd.

Balance Sheet as at 31st March 2002

(Rupees in ……….)



Figures as at the end of the current reporting periodFigures as at the end of the previous reporting period
1. Shareholders’ Funds
a. Share Capital12,45,000
b. Reserves and Surplus239,104
2. Non-current liabilities
3. Current liabilities
a. Short-term borrowings15,700
b. Trade Payables35,200
c. Other current liabilities37,000
d. Short-term provisions48,391
1. Non-Current Assets
a. Fixed Assets583,815
2. Current Assets
a. Inventories91,500
b. Trade Receivables38,700
c. Cash and Cash equivalents1,34,700
d Short-term Loans and advances1,680

Statement of Profit and loss for the year ended 31st March, 2002



Figures for current reporting periodFigures for the previous reporting period
1Revenue from operations4,28,150
2Other income
TOTAL REVENUE (1 + 2)4,28,150
(a) Cost of Materials Consumed62,58,500
(b) Employee benefits expense71,05,400
(c) Depreciation and amortisation expenses813,785
(d) Other expenses934,190
Profit before tax16,275
Less: Provision For Taxation(5,696)
Profit after tax10,579

Notes to Accounts:-

  1. Shareholder’s Fund
50,000 Shares of Rs.10 each500000
Issued & Subscribed Capital-
25,000 Shares of Rs.10 each250000
Less: Calls in arrears(5000)245000
2.Reserves & Surplus
General Reserve25000
Surplus from Statement of P & L:-
Net profit of the year10579
Add:-   Balance of Last year622016799
Less:-  Proposed Dividend(2450)
Corporate Dividend Tax(245)(2695)1410439104
3.Other Current Liabilities
4.Short term-Provisions
Provision for taxation5696
Proposed dividend


5.Fixed Assets
(a) Tangible Assets:-
Plant & Machinery80500
Less:-Depreciation @15%(12075)68425
Less:-Depreciation @10%(1710)1539083815
6.Cost of Material Consumed
Opening Stock50000
Closing Stock(91500)258500
7.Employee benefit Expenses
O/S wages520075200
O/S Salaries120019700
8.Depreciation and amortisation expenses
Depreciation on Plant12075
Depreciation on Furniture171013785
9.Other Expenses
Discount Allowed4200
O/S Rent6006600
Bad Debts3200
General Expenses8950
Printing & Stationery2400
Unexpired Insurance(1680)504034190

Illustration 25.2

The following is the Trial Balance of M Ltd. as on 31st March, 2002:

Stock as on 1.4.200175,000Purchase returns10,000
Carriage950Profit and loss A/c15,000
Furniture17,000Share Capital1,00,000
Rent4,000General reserve15,500
Sundry Trade Expenses7,050Bills payable7,000
Dividend paid9,000
Corporate dividend Tax900
Plant & Machinery29,000
Cash at bank45,300
Bills Receivable5,000

Required:- Prepare Statement of Profit and Loss for the year ended 31st March, 2002 and Balance Sheet as on that date after considering the following adjustments in Financial Statements of a Company:

(a)   Stock as on 31st March, 2002: Rs. 88,000

(b)   Provide for income-tax @ 35% and for Corporate Dividend Tax @ 10%.

(c)   Depreciate plant and machinery at 15%; furniture at 10% and patents at 5%.

(d)   On 31st March, 2002 outstanding rent amounted to Rs. 800 and salaries Rs. 900.

(e)   The Board recommends payment of a dividend @ 1596 per annum.

(f)    Provide Rs. 510 for doubtful debts.

(g)   Provide for managerial remuneration Rs. 6,351.

(b)   Transfer 5% of current profits to reserve.


Name of the Company M Ltd.

Balance Sheet as at 31st March, 2002

(Rupees in ……….)




Figures as at the end of current reporting periodFigures as at the end of previous reporting period
1. Shareholders’ Funds
a. Share Capital1,00,000
b. Reserves and Surplus150,822
Non-current liabilities
Current liabilities
a. Trade Payables224,500
b. Other current liabilities38,051
c. Short-term provisions426937
1. Non-Current Assets
a. Fixed Assets
i. Tangible assets5i39,950
ii. Intangible assets5ii4,560
2. Current Assets
a. Inventories688,000
b. Trade Receivables32,500
c. Cash and Cash Equivalents45,300
d. Short-term Loans and advances

Statement of Profit and Loss for the year ended 31st March, 2002



Figures for current reporting periodFigures for the previous reporting period
1Revenue from Operations3,43,000
2Other income
3TOTAL REVENUE (1 +2)3,43,000
(a) Cost of Materials Consumed72,22,000
(b) Employee Benefits Expense844,751
(c) Depreciation and amortisation expenses96,290
(d) Other expenses1013,310
6Profit Before Tax56,649
Less: Provision for Taxation19,827
Profit after Tax36,822

Notes to Accounts:-

1.Reserves & Surplus:-
General Reserve (15,500 + 1,841)17,341
Surplus from Statement of P&L:-
Net profit of the year36,822
Add: Balance of Last Year15,00051,822
Less: General Reserve
(5% of 36,822)(1,841)
Dividend paid(9,000)
Proposed Dividend(6,000)
Dividend Dist.Tax(1,500)(18,341)33,48150,822
2,Trade Payables:-
3.Other Current Liabilities
O/S Rent800
O/S Salaries900
O/S Managerial Remuneration6,3518,051
4.Short term-Provisions:-
Proposed dividend6,000
Provision for taxation19,827
Provisions for B.D.D51026,937


5.Fixed Assets
i. Tangible Assets:-
Plant & Machinery29,000
Less: Depreciation @15%4,35024,650
Less: Depreciation @10%(1,700)15,30039,950
ii. Intangible Assets:-
Less: Amortisation @5%(240)4,560
6.Trade Receivables:-
Bills Receivables5,00032,500
7.Cost of Material Consumed:-
Opening Stock75,000
Purchase Return(10,000)
Closing Stock(88,000)2,22,000
8.Employee benefit Expenses:-
O/S Salaries900
O/S Managerial Remuneration6,35144,751
9.Depreciation and amortisation expenses:-
Depreciation on Plant4,350
Depreciation on Furniture1,700
Amortisation on Patents2406,290
10.Other Expenses:-
O/S Rent8004,800
Sundry Trade Expenses7,050
Provision for Bad Debts51013,310

Illustration 25.3: S Ltd. was registered with a nominal capital of Rs.5,00,000 divided into shares of Rs.100 each. The following Trial Balance is extracted from the books on 31st March, 2002:

Machinery1,00,000Salaries Outstanding2,000
Closing Stock90,000Provision for Doubtful Debt3,000
Purchases (adjusted)2,10,000(1-4-2001)2,00,000
Salaries60,000Share Capital40,000
Director Fees10,000General Reserve25,000
Rent26,000Profit & Loss A/c (1-4-2001)92,000
Bad Debts6,000Provision for depreciation:
Interest accrued on Investment2,000On Building50,0001,05,000
12,000 shares of AB Ltd. Rs.10 each, Rs.8 paid up1,20,000On Machinery55,0002,00,000
Debenture Interest28,00014% Debentures
Loose Tools23,000Interest on Deb. accrued but not due14,000
Advance Tax60,000Interest on Investments12,000
Sundry expenses18,000Unclaimed dividend5,000

You are required to prepare Financial Statements for the year ending 31st March, 2002 after taking into consideration the following information:

(a) Closing stock is more than opening stock by Rs.80,000

(b)   Provide for doubtful debts @ 4% on Debtors

(c)   Make a provision for income-tax @35%

(d) Depreciation expense includes depreciation of Rs.8,000 on Building and that of Rs. 12,000 on Machinery.

(e) The directors recommend a dividend @ 25% (Assume Corporate Dividend Tax @ 10%) and to transfer 10% of current profits to reserve.

Solution 3.

Name of Company S Ltd.

Balance Sheet as at 31st March 2002

(Rupees in ……….)

ParticularsNote No.Figures as at end of current reporting periodFigures as at the end of previous reporting period
1. Shareholders’ Funds
a. Share Capital2,00,000
b. Reserves and Surplus11,08,800
2. Non-current liabilities
α Long-term borrowings2,00,000
Current liabilities
cl Trade Payables292,000
b. Other current liabilities321,000
c. Short-term provisions1,13,200
1. Non-Current Assets
a. Fixed Assets
i. Tangible assets42,85,000
2. Current Assets
a. Current Investment1,20,000
b. Inventories51,13,000
c. Trade Receivables61,25,000
d. Short-term loans and advances60,000
e. Cash and Cash equivalents30,000
f. Other Current Assets2,000

Statement of Profit and loss for the year ended 31st March, 2002



Figures for cur­rent reporting periodFigures for the previous reporting period
1Revenue from Operations5,20,000
2Other income12,000
TOTAL REVENUE (1+2)5,32,000
(a) Cost of Materials Consumed72,10,000
(b) Employee benefits expense870,000
(<?) Finance Cost28,000
(d) Depreciation and amortisation expenses20,000
(e) Other expenses952,000
Profit before tax1,52,000
Less: Provision for Taxation(53,200)
Profit after tax98,800

Notes to Accounts:-

1.Reserves & Surplus
General Reserve Balance (40,000 + 9,880)49,880
Surplus from Statement of P&L:-
Net profit of the year

Add: Balance of Last Year

Less: Transfer to Reserve



Proposed Dividend(50,000)
Corporate Dividend Tax(5,000)(64,880)58,9201,08,800
2.Other Current Liabilities
O/S Salaries2,000
Interest on Deb. (accrued but not due)14,000
Unclaimed Dividend5,00021,000
3.Short term-Provisions
Proposed dividend @ 25%50,000
Provision for taxation @35%53,200
CDT @10%5,000
Provisions for B.D.D (@ 4%)5,0001,13,200
4.Fixed Assets
i. Tangible Assets:-
Less: Depreciation reserve(50,000)2,40,000
Plant & Machinery1,00,000
Less: Depreciation reserve(55,000)45,0002,85,000
Loose Tools23,000
Closing Stock90,0001,13,000
6.Trade Receivables:-
7.Cost of Material Consumed:-
Opening Stock10,000
(+) Purchases2,90,000
(-) Closing Stock(90,000)2,10,000
8.Employee benefit Expenses:
Director Fees10,00070,000
9.Other Expenses:
Bad Debts6,000
Provision for Bad Debts2,000
Sundry Trade Expenses18,00052,000


*This article contains all topics about the Financial Statements of a Company.

For notes on all CA foundation topics, you can visit this article CA foundation note


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