Accounts

Symbiosis Law School

Prof. Swati Magikar

FINAL ACCOUNTS

Problem No.1:

Janata Co. Ltd. Nasik was incorporated with an authorized share capital of Rs. 10,00,000 divided into 10,000 equity shares of Rs. 100 each. The following is the trial balance as on 31-3-2013.

Trial Balance as on 31-3-2013

Particulars | Debit Rs. | Credit Rs. |

Plant & Machinery | 5,60,000 | |

Land and Building | 5,62,400 | |

Share Capital called up | | 8,00,000 |

Loose Tools | 60,000 | |

| | |

Furniture | 14,000 | |

Cash in hand | 8,400 | |

10% Government Bonds (Face value Rs. 50,000) | 49,000 | |

Bills receivables | 54,720 | |

Goodwill | 1,62,000 | |

Motor Vehicles | 11,000 | |

Sundry Debtors | 82,000 | |

Interim Dividend paid | 17,000 | |

Calls in arrears | 50,000 | |

Purchases | 9,37,000 | |

Advertisement | 10,000 | |

Audit fees | 4,160 | |

Carriage Inwards | 15,800 | |

Wages | 50,000 | |

Discount allowed | 5,800 | |

Insurance | 16,600 | |

Stock (1.4.2012) | 1,90,000 | |

General Expenses | 2,640 | |

Salaries | 20,000 | |

Bad-debts | 2,000 | |

Share Premium | | 4,000 |

Sundry Creditors | | 58,400 |

Bills Payable | | 20,000 |

General reserve | | 1,50,000 |

Sinking Fund | | 20,000 |

Deposits | | 20,000 |

Profit and Loss Appropriation A/c (1.4.2012) | | 60,000 |

Share Transfer fees | | 5,200 |

| | |

Sales | | 12,60,000 |

1Rent received | | 43,200 |

15% debentures | | 3,00,000 |

Bank overdraft | | 1,40,000 |

Discount | | 3,720 |

| 28,84,520 | 28,84,520 |

You are required to prepare Statement of Profit and Loss for the year ended 31stMarch, 2013 and Balance Sheet as on that date in the prescribed form under the Companies Act,

The following adjustments have also to be made:

1. The stock on 31-3-2013 was valued at Rs. 1,90,000

2. Provide depreciation on plant and machinery at 5% and Furniture at 10% per annum.

3. Outstanding wages Rs. 4,000.

4....