Page 26 - 1. COMPILER QB - INDAS 1

Notes to Accounts:

Note 1: Reserves and surplus (Rs in lakh)
Capital reserve 500
Surplus from P & L
Opening balance 550
Additions 950 1,500
Reserve for foreseeable loss 400
Total 2,400
Note 2: Long-term borrowings

Term loan from bank 5,700
Total 5,700
Note 3: Deferred tax
Deferred tax asset 700
Deferred tax liability 400
Total 300
Note 4: Other current liabilities

Unclaimed dividends 10
Billing in advance 150
Other current liabilities 40
Total 200

Note 5: Trade Receivables
Considered good (outstanding within 6 months) 1,065
Considered doubtful (due from past 1 year) 40
Provision for doubtful debts (5)
Total 1,100
Additional information:

(i) Share capital comprises of 100 lakh shares of Rs 10 each.
(ii) Term Loan from bank for Rs 5,700 lakh also includes interest accrued and due of Rs 700 lakh as on the

reporting date.
(iii) Reserve for foreseeable loss is created against a service contract due within 6 months.

(iv) Inventory should be valued at cost Rs 1,500 lakh, NRV as on date is Rs 1,200 lakh.
(v) A dividend of 10 % was declared by the Board of directors of the company.

(vi) Accrued Interest income of Rs 300 lakh is not booked in the books of the company.

(vii) Deferred taxes related to taxes on income are levied by the same governing tax laws.
Identify and report the errors and misstatements in the above extracts and prepare corrected Balance
Sheet and Statement of Profit & Loss and where required the relevant notes to the accounts with

explanations thereof.

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