Page 9 - 1. COMPILER QB - INDAS 1

Q4 (Nov 20) - Analysis of Financial Statements

Deepak started a new company Softbharti Pvt. Ltd. with Iktara Ltd. wherein investment of 55% is done by Iktara Ltd.
and rest by Deepak. Voting powers are to be given as per the proportionate share of capital contribution. The new

company formed was the subsidiary of Iktara Ltd. with two directors, and Deepak eventually becomes one of the
directors of company. A consultant was hired and he charged Rs. 30,000 for the incorporation of company and to do
other necessary statuary registrations. Rs. 30,000 is to be charged as an expense in the books after incorporation of
company. The company, Softbharti Pvt. Ltd. was incorporated on 1st April 2019.
The financials of Iktara Ltd. are prepared as per Ind AS.

An accountant who was hired at the time of company’s incorporation, has prepared the draft financials of Softbharti
Pvt. Ltd. for the year ending 31st March, 2020 as follows:
Statement of Profit and Loss
Particulars Amount (Rs.)
Revenue from operations 10,00,000

Other Income 1,00,000
Total Revenue (a) 11,00,000
Expenses:
Purchase of stock in trade 5,00,000
(Increase)/Decrease in stock in trade (50,000)
Employee benefits expense 1,75,000

Depreciation 30,000
Other expenses 90,000
Total Expenses (b) 7,45,000
Profit before tax (c) = (a)-(b) 3,55,000
Current tax 1,06,500
Deferred tax 6,000
Total tax expense (d) 1,12,500
Profit for the year (e) = (c) – (d) 2,42,500

Balance Sheet
Particulars Amount (Rs.)
EQUITY AND LIABILITIES
(1) Shareholders’ Funds
(a) Share Capital 1,00,000
(b) Reserves & Surplus 2,27,500
(2) Non-Current Liabilities
(a) Long Term Provisions 25,000

(b) Deferred tax liabilities 6,000
(3) Current Liabilities
(a) Trade Payables 11,000
(b) Other Current Liabilities 45,000
(c) Short Term Provisions 1,06,500
TOTAL 5,21,000
ASSETS
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