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:
- Closing stock valued at cost:
Finished Goods Rs. 2,01,000
Work-in-Progress Rs. 2,85,000
- 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.
- Details of fixed assets;
|
Assets |
Original Cost Up to |
Depredation Up To |
Arkational on 1 April |
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.