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Rs. 8.50 lakh to maintain their condition (food and protection) and Rs. 4.60 lakh as breeding fee to a
local farmer.
On 1st October 2020,120 calves were born. There were no other changes in the number of animals during

the year ended 31st March 2021. Sewa Dairy Limited had 3,200 liters of unsold milk in inventory as on
31st March 2021. The milk was sold on 1st and 2nd April· 2021 at market prices.
The information regarding fair values is as follows:
Items Fair values less cost to sell (All values in Rs.)
1st April 1st October 2020 31st March 2021
2020
Land 60 Lakhs 70 Lakhs 80 Lakhs

New born calves (per calf) 2,000 2,300 2,500
6 months old calves (per calf) 2.,200 2;500 2,800
2 years old cow (per cow) 10,000 10,250 10,500
3 years old cow (per cow) 10,500 10,800 11,000
Milk per liter 25 27 30
Prepare extracts from the Balance Sheet (assuming land under cost method) and Statement of Profit and
Loss that would be reflected in the financial statements of Sewa Dairy Limited for the year ended 31st
March 2021. Discuss the relevant Ind AS in support of your workings.

Solution

Extract from the Statement of Profit and Loss of Sewa Diary Limited for the period ended on 31st
March, 2021
WN Amount

Income
Change in fair value of purchased dairy cow WN 2 2,00,000
Government Grant WN 3 10,00,000

Change in the fair value of newly born calves WN 4 3,36,000
Fair Value of Milk WN 5 96,000
Total Income (A) 16,32,000

Expenses
Maintenance Costs WN 2 8,50,000
Breeding Fee WN 2 4,60,000
Total Expense (B) (13,10,000)

Net Income (A-B) 3,22,000

Extracts from Balance Sheet of Sewa Diary Limited As at 31st
March, 2021
Rs.

Property, Plant and Equipment:
Land WN 1 60,00,000
Biological assets other than bearer plants:
Dairy Cow WN 2 22,00,000
Calves WN 4 3,36,000 25,36,000

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