Prepare the profit and loss account for the year ended 31 March 2011 and a balance sheet as on that date from the following ledger balances:

Particulars

 

Particulars

 

Opening Stock:

 

Sales

49,50,000

Finished Goods:

3,60,000

Export Subsidy & Drawback

1,50,000

Work-in-Progress

1,65,000

Share Capital

14,70,000

Raw Material Consumed

10,50,000

General Reserve

2,25,000

Stores Consumed

52,50,000

P&L A/c (1 April 2010)

30,000

Wages

1860,000

Secured Loans

11,55,000

Closing Stock:

 

Sundry Creditors

4,05,000

Raw Material

60,00,000

Outstanding expenses

2,46,000

Stores

45,000

Proposed Dividend

90,000

Staff Salary

60,000

Motor Car Sales A/c

27,000

Audit Fees

15,000

Provision for Bad Debts

45,000

Sundry Debtors

7,65,300

Interest Received

24,000

Bad Debts

24,000

   

Cash & Bank Balances

4,68,600

   

Fixed Deposit

4,05,000

   

Income Tax Advance Payment

6,00,000

   

Fixed Assets

10,50,000

   

Managing Director”s Remuneration

36,000

   

General Expenses

6,94,500

   

Director”s Fees

3,600

   

Dividend Paid

90,000

   
 

88,17,000

 

88,17,000

Further available information:

  1. Closing stock valued at cost:

Finished Goods   Rs. 2,01,000

Work-in-Progress Rs. 2,85,000

  1. Managing director is entitled to a maximum commission @5% of profits as per Companies Act, subject to a minimum of Rs.3,000 per month.
  2. Details of fixed assets;

Assets

Original Cost Up to
last Year

Depredation Up To
Last Year:

Arkational on 1 April
2010Rs.

Rate of Depredation
%

Machinery

1050,000

1,50,000

IS

Furniture

50,000

StODO

10

Motor Car

99,000

75.000

90.000

20

4. An old motor car having original cost of Rs.54,000 and depreciation allowed Rs.45,000 up to last year was sold on 30 September 2010 for Rs27,000 and proceeds were credited to Motor Car Sales A/c without any adjustment.

5. Depreciation allowed under income tax rule is Rs.1,35,000.

6. Provision for taxation to be made at 50%.

7. Directors recommend payment of dividend @10% on paid-up capital.

8. Excess provision for doubtful debts is no longer required.