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CA Intermediate · Advanced Accounting · Financial Statements of Companies

Kaveri Textiles Ltd. has the following balances on 31 March 2026: Equity share capital Rs 50,00,000; Securities premium Rs 8,00,000; General reserve Rs 12,00,000; Surplus in statement of profit and loss (credit) Rs 5,00,000; Capital reserve Rs 3,00,000. Under Schedule III (Division I), what amount is shown under the head 'Reserves and Surplus'?

The Reserves and Surplus head totals Rs 28,00,000. It combines capital reserve, securities premium, general reserve and the surplus in the profit and loss statement. Share capital is shown separately under Shareholders' Funds, so it is excluded from this head.

  1. ARs 28,00,000Correct
  2. BRs 78,00,000
  3. CRs 25,00,000
  4. DRs 20,00,000

Explanation

Reserves and Surplus includes capital reserve, securities premium, general reserve and surplus in the statement of profit and loss. Total = 3,00,000 + 8,00,000 + 12,00,000 + 5,00,000 = Rs 28,00,000. Rs 78,00,000 wrongly adds share capital, which is shown under Share Capital. Rs 25,00,000 omits the capital reserve.

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