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CA Intermediate · Advanced Accounting · Financial Statements of Companies

Meera Textiles Ltd. has the following balances at 31 March 2026: Equity share capital Rs 50,00,000; Securities premium Rs 6,00,000; General reserve Rs 9,00,000; Surplus in Statement of Profit and Loss (credit) Rs 4,00,000; Capital redemption reserve Rs 2,00,000. Under Schedule III (Division I), what amount is shown under 'Reserves and Surplus' in the Balance Sheet?

Reserves and Surplus is Rs 21,00,000. It comprises securities premium, general reserve, capital redemption reserve and the credit balance in the Statement of Profit and Loss, while equity share capital is shown separately under Shareholders' Funds.

  1. ARs 21,00,000Correct
  2. BRs 71,00,000
  3. CRs 19,00,000
  4. DRs 15,00,000

Explanation

Reserves and Surplus includes securities premium, general reserve, capital redemption reserve and surplus in the Statement of Profit and Loss. Total = 6,00,000 + 9,00,000 + 4,00,000 + 2,00,000 = Rs 21,00,000. Rs 19,00,000 wrongly omits the capital redemption reserve; share capital is shown separately, not here.

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