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PAPER 1 : ACCOUNTING

vii Directors loan A/c

23

Dr.

3,00,000
75,000

To Equity share capital A/c (` 2 each)

To Capital reduction A/c
ix

2,25,000

Capital Reduction A/c

Dr.

7,65,000

To Profit and loss A/c

5,25,000

To Trade receivables A/c

To Inventories A/c

90,000
1,20,000

To Bank
A/c A/c (10% of ` 3,00,000)
To Bank
x

30,000

Capital Reduction A/c

Dr.

5,08,000

To Capital reserve A/c

5,08,000

Balance Sheet of Hema Ltd. (and reduced)

Particulars

Notes No.

Equity and Liabilities

1 Shareholders' funds

Share capital

6,27,000

Reserves and Surplus

5,08,000

1,00,000

Non-current liabilities
Long-term borrowings

3 Current liabilities
a

Trade Payables

1,01,000
Total

13,36,000

Assets
1 Non-current assets
a

Fixed assets
Tangible assets

6,00,000

2 Current assets
a

Inventories

1,80,000

Trade receivables

3,60,000

Cash and cash equivalents

5
Total

1,96,000
13,36,000

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