ILLUSTRATION 1. Following balances are extracted from the books of Railway Company after completion of the Revenue Account for the year ended 31st March, 2016. You are required to prepare the Receipts and Expenditure on Capital Account and the General Balance Sheet. Cr. $ Dr. Equity Shares 6% Preference Shares 10,00,000 6,00,000 7;% Debentures 4,00,000 Lines open for traffic Lines in the course of construction Lines Leased Working Stock (Engines, Carriages etc.) Lines jointly owned Freehold Land Securities Premium Reserve A/c Cash at Bank General Stores and Stocks Net Revenue A/c Traffic Accounts due to the company Due from other companies Sundry Outstanding Accounts Due to other companies Sundry Creditors Fire Insurance Fund General Reserve 17,04,000 10,000 40,000 2,60,000 1,00,000 25,000 55,000 10,000 25,000 32,000 20,000 5,000 7,000 4,000 30,000 5,000 65,000 15,000 Superannuation Fund 22,06,000 22,06,000 During the year there was an issue of $ 1,50,000 6% Preference shares at par and this was fully subscribed. Equity shares of $ 2,00,000 were also issued at a premium of 10%. Expenditures during the year made on lines open for traffic $ 40,000 and lines in the course of construction $ 3,000 were made and the construction to lines jointly owned $ 20,000.
ILLUSTRATION 1. Following balances are extracted from the books of Railway Company after completion of the Revenue Account for the year ended 31st March, 2016. You are required to prepare the Receipts and Expenditure on Capital Account and the General Balance Sheet. Cr. $ Dr. Equity Shares 6% Preference Shares 10,00,000 6,00,000 7;% Debentures 4,00,000 Lines open for traffic Lines in the course of construction Lines Leased Working Stock (Engines, Carriages etc.) Lines jointly owned Freehold Land Securities Premium Reserve A/c Cash at Bank General Stores and Stocks Net Revenue A/c Traffic Accounts due to the company Due from other companies Sundry Outstanding Accounts Due to other companies Sundry Creditors Fire Insurance Fund General Reserve 17,04,000 10,000 40,000 2,60,000 1,00,000 25,000 55,000 10,000 25,000 32,000 20,000 5,000 7,000 4,000 30,000 5,000 65,000 15,000 Superannuation Fund 22,06,000 22,06,000 During the year there was an issue of $ 1,50,000 6% Preference shares at par and this was fully subscribed. Equity shares of $ 2,00,000 were also issued at a premium of 10%. Expenditures during the year made on lines open for traffic $ 40,000 and lines in the course of construction $ 3,000 were made and the construction to lines jointly owned $ 20,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ILLUSTRATION 1. Following balances are extracted from the books of Railway Company after
completion of the Revenue Account for the year ended 31st March, 2016. You are required to prepare the
Receipts and Expenditure on Capital Account and the General Balance Sheet.
Cr.
$
Dr.
Equity Shares
6% Preference Shares
10,00,000
6,00,000
75% Debentures
4,00,000
Lines open for traffic
Lines in the course of construction
Lines Leased
Working Stock (Engines, Carriages etc.)
Lines jointly owned
Freehold Land
Securities Premium Reserve A/c
Cash at Bank
General Stores and Stocks
Net Revenue A/e
Traffic Accounts due to the company
Due from other companies
Sundry Outstanding Accounts
Due to other companies
Sundry Creditors
Fire Insurance Fund
General Reserve
Superannuation Fund
17,04,000
10,000
40,000
2,60,000
1,00,000
25,000
55,000
10,000
25,000
32,000
20,000
5,000
7,000
4,000
30,000
5,000
65,000
15,000
22,06,000
22,06,000
During the year there was an issue of $ 1,50,000 6% Preference shares at par and this was fully
subscribed. Equity shares of $ 2,00,000 were also issued at a premium of 10%. Expenditures during the
year made on lines open for traffic $ 40,000 and lines in the course of construction $ 3,000 were made
and the construction to lines jointly owned $ 20,000.
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