Kotak Ltd- has the following balance on 1st April- 2016- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- Rs- Statement of Profit amp- Loss nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp-2-00-000- Debenture Redemption Reserve nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- 6-00-000 Capital Reserve nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- nbsp- 5-00-000 It earned a profit of Rs- 10-00-000 for the year ended 31st March- 2017- It decided to transfer Rs- 2-00-000 to Debenture Redemption Reserve and Rs- 3-00-000 to General Reserve- Directors proposed a final dividend of Rs- 1-20-000- Show how these items will appear in the Balance Sheet and notes to accounts- nbsp- nbsp-

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Byju's Answer

Standard XII

Accountancy

Adjustment in Partner's Capital A/c (Retirement)

Kotak Ltd. ha...

Question

Kotak Ltd. has the following balance on 1st April, 2016:

Rs.

Statement of Profit & Loss (2,00,000)

Debenture Redemption Reserve 6,00,000

Capital Reserve 5,00,000

It earned a profit of Rs. 10,00,000 for the year ended 31st March, 2017. It decided to transfer Rs. 2,00,000 to Debenture Redemption Reserve and Rs. 3,00,000 to General Reserve. Directors proposed a final dividend of Rs. 1,20,000.

Show how these items will appear in the Balance Sheet and notes to accounts.

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Solution

Kotak Ltd.

EXTRACT OF BALANCE SHEET

as at 31st March, 2017

$\begin{matrix} Particulars & Note & 31.03.2017 & 31.03.2016 No. Rs. & Rs. 1. EQUITY AND LIABILITIES : (1) Shareholder's Funds Reserves and Surplus & 1 & 17, 80, 000 & 9, 00, 000 (2) Current Liabilities : & 2 & 1, 20, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 19, 00, 000 - --------- - - --------- - \end{matrix}$

Notes to Accounts :

$\begin{matrix} 31.03.2017 (1) Reserves and Surplus : (a) Capital Reserve & 5, 00, 000 (b) Debenture Redemption Reserve : Opening Balance & 6, 00, 000 Transfer from Surplus & 2, 00, 000 - -------- - & 8, 00, 000 (c) General Reserve : Opening Balance & - Transfer from Surplus & 3, 00, 000 - -------- - & 3, 00, 000 (d) Surplus : Balance in Statement of Profit & Loss (Opening) & (2, 00, 000) Surplus for the Period & 10, 00, 000 - --------- - Available for Appropriations & 8, 00, 000 Less : Appropriations : Debenture Redemption Reserve & 2, 00, 000 General Reserve & 3, 00, 000 Proposed Dividend & 1, 20, 000 - -------- - & 6, 20, 000 - -------- - & 1, 80, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 17, 80, 000 - --------- - - --------- - (2) Short term Provisions : Proposed Dividend & 1, 20, 000 \end{matrix}$

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