Question

0.4. Axis Ltd. has the following balances on 1st April, 2017:
9.59
₹
Statement of Profit & Loss
3,00,000
Debenture Redemption Reserve
5,00,000
General Reserve
7,00,000
Securities Premium Reserve
2,00,000
It earned a profit of 6,00,000 for the year ended 31st March, 2018. It decided
to transfer 33,00,000 towards General Reserve and $2,50,000 towards
Debenture Redemption Reserve.
Directors proposed a final dividend of 80,000.
Show how these items will appear in the Balance Sheet and notes to accounts.
[Ans. Reserve and Surplus 522,20,000; Short term Provision 780,000.]
is made is given helow. How​

Answer 1

Explanation:

If business is purchased and assets and liabilities are mentioned along with purchase price, pass a journal entry. To balance the entry use word ‘Goodwill’ if difference is on debit side and word ‘Reserves’ if difference is on credit side.

Answer 2

Answer:

0.4. Axis Ltd. has the following balances on 1st April, 2017:

9.59

₹

Statement of Profit & Loss

3,00,000

Debenture Redemption Reserve

5,00,000

General Reserve

7,00,000

Securities Premium Reserve

2,00,000

It earned a profit of 6,00,000 for the year ended 31st March, 2018. It decided

to transfer 33,00,000 towards General Reserve and $2,50,000 towards

Debenture Redemption Reserve.

Directors proposed a final dividend of 80,000.

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

[Ans. Reserve and Surplus 522,20,000; Short term Provision 780,000.]

is made is given helow. How