Following trial balance as at 31st March 2006 has been prepared from the account books of Mahesh Foods Ltd.
|
Accounts |
Dr. (Rs.) |
Dr. (Rs.) |
|
Share capital |
24,00,000 |
|
|
Cash in hand |
37,200 |
|
|
Repairs & maintenance plant |
51,600 |
|
|
General reserve |
6,00,000 |
|
|
Profit and loss account |
10,60,000 |
|
|
Raw materials inventory, 31.03.2006 |
16,02,000 |
|
|
Plant and machinery |
25,80,000 |
|
|
Sundry creditors |
18,40,000 |
|
|
Land |
4,80,000 |
|
|
Furniture |
73,200 |
|
|
Sundry debtors |
10,40,000 |
|
|
Rent |
1,31,800 |
|
|
Prepaid expenses |
27,600 |
|
|
Advances from customers |
3,00,000 |
|
|
Power and fuel |
1,52,800 |
|
|
Travelling and conveyance |
94,600 |
|
|
Auditors’ fees |
39,000 |
|
|
Cash at bank |
2,48,000 |
|
|
Advances to staff |
31,800 |
|
|
Misc. Income |
3,72,600 |
|
|
Finished goods inventory, 1.04.2005 |
18,60,000 |
|
|
Raw materials |
1,71,60,000 |
|
|
Sales |
2,53,80,000 |
|
|
Building |
4,44,600 |
|
|
Salaries |
42,20,000 |
|
|
Wages |
17,65,000 |
|
|
Deposits with govt. authorities |
2,68,400 |
|
|
Cash credit-Indian bank-secured |
4,00,000 |
|
|
Bank interest |
45,000 |
|
|
Total |
3,23,52,600 |
3,23,52,600 |
Further information
- The authorized capital of the company is 3 lac equity shares of Rs. 10 each of which 2.40 lac shares have been issued.
- The closing stock of finished goods is valued at Rs. 33,50,000.
- Depreciation to be charged: plant and machinery @ 14%, furniture & fixtures @ 18% and building @ 10%.
- Provide for income tax @ 35%.
- Transfer to general reserve @ 5% of net profit. Round off to next higher 100 rupees.
- A dividend of 15% is recommended by the board of directors.
Required
- Prepare the following financial statements of Mahesh Foods Ltd.:
- Balance sheet as at 31st March 2006.
- Profit and loss account for the year ended 31st March 2006.
- Profit and loss appropriation account for the year ended 31st March 2006.
- Briefly comment upon the performance of the company.
(Hint: Raw materials inventory, 31.03.2006, Rs. 16,02,000 appearing in the trial balance means that raw materials Rs. 1,71,60,000 represent those consumed, that is, opening inventory plus purchases less closing inventory.)