Prepare a balance sheet of Samarth Ltd. in a prescribed pro forma as on 31-03-2015 from the following trial balance.

Steps to Solve

1. Organize the Trial Balance for Samarth Ltd.

Start by listing all the debit and credit balances from the trial balance provided for Samarth Ltd. as of March 31, 2015.

• Debits

  • Lease hold premises: ₹13,00,000
  • Plant & Equipment: ₹9,45,000
  • Book debts: ₹3,44,000
  • Bank balance: ₹1,45,000
  • Advance Income tax: ₹85,000
  • Licenses & Franchise: ₹2,25,000
  • Redeemable Prefer. shares in Sonatas Ltd.: ₹6,30,000
  • Cheques on hand: ₹95,000
  • Rent paid in advance: ₹36,000

• Credits

  • Debenture redemption reserve: ₹3,75,000
  • Provision for warranties: ₹1,35,000
  • Short Term Loan from Ambica Ltd.: ₹2,65,000
  • Profit & Loss A/c: ₹2,69,000
  • 12% Debentures: ₹4,50,000
  • Commission payable: ₹44,000
  • Equity shares of ₹100 each: ₹16,00,000
  • Provision for tax: ₹46,000
  • Mortgage loan from IDBI: ₹5,62,000

2. Prepare the Balance Sheet Format

Set up the balance sheet format including sections for Assets and Liabilities.

• Assets should include:

  • Non-Current Assets
  • Current Assets

• Liabilities should include:

  • Non-Current Liabilities
  • Current Liabilities

3. Calculate Total Assets and Total Liabilities

For each section, sum up the debit (asset) accounts and the credit (liability) accounts separately.

• Total Assets: $$ 13,00,000 + 9,45,000 + 3,44,000 + 1,45,000 + 85,000 + 2,25,000 + 6,30,000 + 95,000 + 36,000 $$

• Total Liabilities: $$ 3,75,000 + 1,35,000 + 2,65,000 + 2,69,000 + 4,50,000 + 44,000 + 16,00,000 + 46,000 + 5,62,000 $$

4. Fill in the Balance Sheet

Under each section, fill in the associated values calculated previously. Ensure that total assets equal total liabilities to confirm that the balance sheet is balanced.

5. Double Check Calculations

Finally, review all calculations to ensure accuracy. Check that every number from the trial balance is included and correctly categorized in the balance sheet.