following is the balance sheet of mehar limited as at 31 march 2024
Following is the balance sheet of mehar limited as at 31 March 2024
Answer:
Below is a typical example of how a balance sheet for a company such as Mehar Limited could be presented as of 31 March 2024. Please note that the figures are hypothetical and for illustrative purposes only.
Balance Sheet Components
1. Assets
Assets represent the resources owned by the company. They are divided into:
- Non-Current Assets: Long-term investments, property, plant, equipment, intangible assets, etc.
- Current Assets: Short-term resources such as inventory, trade receivables (debtors), cash, and cash equivalents.
2. Liabilities
Liabilities are the obligations or debts owed by the company:
- Long-Term Liabilities: Debentures, long-term loans, bonds, etc.
- Current Liabilities: Trade payables (creditors), short-term borrowings, and other obligations payable within one year.
3. Shareholders’ Equity
Equity reflects the owners’ stake in the company:
- Share Capital: The amount contributed by shareholders.
- Reserves and Surplus: Accumulated profits or reserves such as securities premium, general reserves, revaluation reserves, retained earnings, etc.
Example Balance Sheet (Hypothetical Figures)
| Particulars | Notes | Amount (Rs.) |
|---|---|---|
| I. Equity and Liabilities | ||
| 1. Shareholders’ Funds | ||
| - Share Capital | 1 | 10,00,000 |
| - Reserves & Surplus | 2 | 4,00,000 |
| Total Shareholders’ Funds | 14,00,000 | |
| 2. Non-Current Liabilities | ||
| - Long-term Borrowings | 3 | 5,00,000 |
| Total Non-Current Liabilities | 5,00,000 | |
| 3. Current Liabilities | ||
| - Short-term Borrowings | 4 | 2,00,000 |
| - Trade Payables | 5 | 1,50,000 |
| - Other Current Liabilities | 6 | 50,000 |
| Total Current Liabilities | 4,00,000 | |
| Total Equity and Liabilities | 23,00,000 | |
| II. Assets | ||
| 1. Non-Current Assets | ||
| - Property, Plant & Equipment | 7 | 8,00,000 |
| - Intangible Assets | 8 | 1,00,000 |
| Total Non-Current Assets | 9,00,000 | |
| 2. Current Assets | ||
| - Inventories | 9 | 4,00,000 |
| - Trade Receivables | 10 | 3,00,000 |
| - Cash & Cash Equivalents | 11 | 5,00,000 |
| - Other Current Assets | 12 | 2,00,000 |
| Total Current Assets | 14,00,000 | |
| Total Assets | 23,00,000 |
Key Definitions
- Share Capital: The money invested in the company by shareholders in exchange for shares.
- Reserves & Surplus: Profits retained in the business and other reserve balances (e.g., general reserves, capital reserves).
- Property, Plant & Equipment (PPE): Tangible long-term assets like land, buildings, machinery, etc.
- Trade Receivables (Debtors): The amount of money owed to the company by its customers who have purchased goods or services on credit.
- Trade Payables (Creditors): The amount of money the company owes to its suppliers for goods or services purchased on credit.
Use this example as a template to understand how a balance sheet is structured. The actual numbers for Mehar Limited would reflect real transactions, valuations, and accounting policies followed by the company.
Table Summary of Key Sections
| Section | Components |
|---|---|
| Shareholders’ Equity | - Share Capital - Reserves & Surplus |
| Non-Current Liabilities | - Long-term Borrowings |
| Current Liabilities | - Short-term Borrowings - Trade Payables - Other Liabilities |
| Non-Current Assets | - Property, Plant & Equipment - Intangible Assets |
| Current Assets | - Inventories - Trade Receivables - Cash & Cash Equivalents - Other Current Assets |
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