https://file.aiquickdraw.com/mathbot/file/1726389574504cb0gdo99.jpg

The image you provided shows a company's balance sheet with the following components:

### **Equity and Liabilities:**
1. **Shareholders' Funds:**
   - Share Capital: ₹7,00,000
   - Reserves and Surplus: ₹1,00,000
   - **Total Shareholders' Funds:** ₹8,00,000

2. **Non-Current Liabilities:**
   - Long-Term Borrowings (12% Loan): ₹3,00,000

3. **Current Liabilities:**
   - Trade Payables (Sundry Creditors): ₹1,90,000
   - Short-Term Provisions (Provision for Bad Debts): ₹50,000
   - **Total Current Liabilities:** ₹2,40,000

### **Total Equity and Liabilities: ₹13,40,000**

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### **Assets:**
1. **Non-Current Assets:**
   - Property, Plant, and Equipment: ₹5,50,000
   - Office Furniture: ₹90,000
   - Intangible Assets (Trademark): ₹1,00,000
   - **Total Non-Current Assets:** ₹7,40,000

2. **Current Assets:**
   - Trade Receivables (Sundry Debtors + Bills Receivable): ₹3,00,000
   - Cash and Cash Equivalents: ₹30,000
   - Marketable Securities: ₹1,00,000
   - **Total Current Assets:** ₹4,30,000

### **Total Assets: ₹13,40,000**

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Both sides (Assets and Liabilities) balance out at ₹13,40,000, indicating a well-prepared balance sheet.

Do you need more details on any particular part or have any specific questions? Here are some related questions to think about:

1. How does the provision for bad debts affect the company's profitability?
2. What role do marketable securities play in managing liquidity?
3. Why is it important to maintain a balance between current assets and current liabilities?
4. What could be the implications of long-term borrowings for a company's financial health?
5. How does the value of intangible assets, like trademarks, influence a company's asset strength?

**Tip:** It's crucial to maintain a proper balance between your liabilities and assets, as an imbalance can lead to cash flow issues and financial strain.

Provide an analysis of the company's balance sheet as displayed in the image.

This detailed analysis of a company's balance sheet includes an examination of equity, liabilities, and assets totaling ₹13,40,000. It covers shareholders' funds, non-current and current liabilities, non-current assets, and current assets, highlighting key financial insights for business students.

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