Model: Preparation of P&L A/c and balance sheet The following is the trial balance of Vir Ltd. as on 31 March 2011:
|
Particulars |
Particulars |
||
|
Stock as on 1 April 2010 |
7,50,000 |
Purchase Returns |
1,00,000 |
|
Purchase |
24,50,000 |
Sales |
34,00,000 |
|
Wages |
3,00,000 |
Discount |
30,000 |
|
Carriage Inwards |
9,500 |
Profit & Loss Account |
1,59,000 |
|
Furniture |
1,70,000 |
Share Capital |
10,00,000 |
|
Salaries |
75,000 |
Sundry Creditors |
1,75,000 |
|
Rent |
40,000 |
General Reserve |
1,55,000 |
|
Sundry Trade Expenses |
60,500 |
Bills Payable |
70,000 |
|
Dividend Paid for 2009-10 |
90,000 |
||
|
Corporate Dividend Tax Paid |
9,000 |
||
|
Sundry Debtors |
2,85,000 |
||
|
Plant & Machinery |
2,90,000 |
||
|
Cash at Bank |
4,62,000 |
||
|
Patents |
48,000 |
||
|
Bills Receivable |
50,000 |
||
|
50,89,000 |
50,89,000 |
Prepare the profit and loss account for the year ended 31 March 2011 and a balance sheet as on that date after considering the following adjustments:
- Stock as on 31 March 2011 was valued at Rs.8,81,000
- Make a provision for income tax as 35%
- Depreciate plant and machinery at 15%; furniture at 10% and patents at 5%
- On 31 March 2011, outstanding rent amount to Rs.8,000
- The Board recommends payment of dividend @15% p.a. Then transfer the minimum amount required to general reserve. Also make a provision for corporate dividend tax @10% of the amount proposed to be distributed.
- Provide Rs.3,100 for doubtful debts
- Provide Rs.52,000 for managerial remuneration