Trial Balance of Nirmal Ltd. as on 30 September 2010

Particulars

 Rs.

Particulars

 Rs.

Preference Share Redemption

24,000

Share Capital (Authorized & Issued)

 

Land (cost)

1,00,000

Equity Share 75,000 Shares

7,50,000

Building (Cost Less Depreciation)

3,50,000

8% Redeemable Preference Shares (200

 

Furniture (Cost Less Depreciation)

10,000

Shares)

20,000

Motor Vehicle (Cost Less Depreciation)

17,500

Securities Premium

12,500

Establishment Expenses

1,25,000

General Reserve

50,000

Rent, Taxes & Insurance

6,000

 

 

 

 

Trading A/c—Gross Profit

4,00,000

Commission

2,000

 

 

 

 

Discount Received

2,500

Directors” Fees

1,000

 

 

Depreciation

30,000

Interest on Investments Tax Free

4,000

Sundry Expenses

30,000

Sundry Creditors

12,800

Payment to Auditors

2,000

Profit & Loss A/c (30 September 2009)

5,000

Interim Dividend

38,300

Unpaid Dividend

1,000

Sundry Debtors

15,000

Outstanding Expenses

3,000

Cash in Hand

6,000

Provision for Taxation

35,000

Cash as Bank in Current A/c

97,500

 

 

Security Deposit

5,000

 

 

Investment in GI Notes

1,00,000

 

 

Stocks at or Below Cost

1,76,500

 

 

IncomeTax Paid Under Dispute

50,000

 

 

Advance Payment of IT

1,10,000

 

 

 

12,95,800

 

12,95,800

The following additional information is available:

  1. The preference shares were redeemed on 1 April 2010 at a premium of 20% but no entries were passed for giving effect there to except payment standing to the debit of preference share redemption account.
  1. Depreciation as per income tax rules provided up to 30 September 2010 is as follows: Building: Rs.1,05,000; furniture: Rs.10,000; Motor vehicles: Rs.30,000.
  2. Payment to auditors includes Rs.500 for taxation work in addition to audit fees.
  3. Market value of investment as on 30 September 2010 Rs.90,000.
  4. Interim dividend includes dividend on equity shares Rs.37,500 and dividend on preference shares Rs.800.
  5. Sundry debtors include Rs.10,000 due for a period exceeding 6 months.
  6. All receivables and deposits are considered good.
  7. Income tax demand for provided for in full against which an appeal is pending.
  8. Directors have recommended payment of a further dividend on equity shares at Rs.0.50 per share after appropriating Rs.15,000 to general reserve.
  9. Ignore previous year’s figures.

Prepare the profit and loss account for the year ended 30 September 2010 and the balance sheet on that date.