The following is the trial balance of Sanjay Industries Ltd. as on 31st March 2006.
|
Accounts |
Dr. (Rs.) |
Cr. (Rs.) |
|
Stock, 1st April 2005 |
6,75,000 |
|
|
Sales |
30,60,000 |
|
|
Wages |
2,70,000 |
|
|
Share capital (Authorized Capital 2,00,000 shares of Rs. 10 each) |
9,00,000 |
|
|
Discount |
27,000 |
|
|
Purchases |
22,05,000 |
|
|
Carriage inward |
8,550 |
|
|
Purchases returns |
90,000 |
|
|
Patents & trademark |
43,200 |
|
|
Salaries |
67,500 |
|
|
Bills receivable |
45,000 |
|
|
Sundry expenses |
63,450 |
|
|
Bills payable |
63,000 |
|
|
Rent |
36,000 |
|
|
Debtors & creditors |
2,47,500 |
1,57,500 |
|
Plant & machinery |
2,61,000 |
|
|
Furniture & fittings |
1,53,000 |
|
|
Cash at bank |
4,15,800 |
|
|
General reserve |
1,39,500 |
|
|
Profit & loss account, 31st March 2005 |
54,000 |
|
|
Total |
44,91,000 |
44,91,000 |
Further information
- Outstanding rent amounted to Rs. 7,200 while outstanding salaries Rs. 8,100 at the end of the year.
- Make a provision for doubtful debts amounting to Rs. 4,590.
- Stock on 31st March 2006 was valued at Rs. 7,92,000.
- Depreciate plant & machinery @ 14% and furniture & fittings @18%.
- Amortise patents & trademarks @ 5%.
- Provide for managerial remuneration @ 10% of the net profits before tax.
- Make a provision for income tax @ 35%.
- The Board of Directors proposes a dividend @ 10% for the year ended 31st March 2006 after transfer to General Reserve @ 5% of profit after tax.
Required
- Prepare the following financial statements of Sanjay Industries Ltd.:
- Profit and loss account for the year ended 31st March 2006.
- Profit and loss appropriation account for the year ended 31st March 2006.
- Balance sheet as on 31st March 2006.
- Briefly comment upon the performance of the company.