1. K Limited provided the following information as on 31.3.2009
|
Particulars
|
Rs.
|
Rs.
|
|
Share capital: 2,50,000 equity shares of Rs. 10 each.
|
|
25,00,000
|
|
Profit & Loss a/c
|
|
3,50,000
|
|
Land & Building
|
12,00,000
|
|
|
Plant & Machinery
|
9,00,000
|
|
|
Motor Vehicles
|
4,50,000
|
|
|
Gross profit
|
|
19,00,000
|
|
Salary
|
2,90,000
|
|
|
Directors fees
|
60,000
|
|
|
Rent
|
1,35,000
|
|
|
Stock
|
1,90,000
|
|
|
Sundry Debtors
|
2,00,000
|
|
|
Dividend received
|
|
55,000
|
|
Audit fees
|
45,000
|
|
|
Cash account
|
3,50,000
|
|
|
Sundry Creditors
|
|
1,25,000
|
|
Loan
|
|
4,80,000
|
|
Advances paid for the purchase of machine
|
9,00,000
|
|
|
Electricity Charges
|
50,000
|
|
|
Investment on shares of companies
|
6,00,000
|
|
|
Interest paid
|
40,000
|
|
|
Total
|
54,10,000
|
54,10,000
|
The following further information are also given;
1. Stock has been revalued as 1,70,000.
2. Depreciation @10% should be provided for all fixed assets.
3. Provision for general reserve was 1,70,000.
4. The company paid an interim dividend for Rs.3,50,000.
Prepare the profit and loss account and balance sheet as on 31.3.2009.
2. The trial balance for ABC Ltd as on 31.3.2009 is stated as follows:
|
Particulars
|
Rs.
|
Particulars
|
Rs.
|
|
Purchases
|
7,50,000
|
Equity share capital(2,00,000 @ 10 each)
|
20,00,000
|
|
Salary
|
1,40,000
|
Sales
|
17,50,000
|
|
Wages
|
1,70,000
|
General Reserve
|
2,40,000
|
|
Bad Debts
|
40,000
|
P&L Account
|
3,90,000
|
|
Building
|
15,00,000
|
Sundry Creditors
|
1,30,000
|
|
Machinery
|
13,00,000
|
Wages o/s
|
40,000
|
|
Loose Tools
|
3,00,000
|
12% Debentures
|
4,00,000
|
|
Depreciation
|
90,000
|
Interest on debentures accrued but no due
|
24,000
|
|
Directors fees
|
1,10,000
|
Interest on investment
|
43,000
|
|
Electricity
|
55,000
|
Unclaimed Dividend
|
45,000
|
|
Commission Paid
|
65,000
|
Depreciation on Building
|
5,00,000
|
|
Opening Stock
|
1,50,000
|
Depreciation on Machinery
|
4,30,000
|
|
Audit fees
|
60,000
|
|
|
|
Debenture interest
|
48,000
|
|
|
|
Sundry Expenses
|
45,000
|
|
|
|
Advance tax
|
79,000
|
|
|
|
Sundry debtors
|
3,00,000
|
|
|
|
Bank
|
3,00,000
|
|
|
|
Investments
|
4,50,000
|
|
|
|
Interest accrued on investments
|
40,000
|
|
|
|
Total
|
59,92,000
|
Total
|
59,92,000
|
1. Closing stock is valued at Rs.2,20,000.
2. Final dividend at 13% was recommended by directors.
3. Provision for income tax 1,25,000.
4. Provide 5% on bad and doubtful debts.
5. Depreciation for building Rs. 50,000 and Machinery Rs. 40,000.
6. Authorized Share capital of the company is Rs.40,00,000.
3. The Trial balance of ABC Ltd. As on 31st March 2009 stated as follows:
|
Particulars
|
Rs.
|
Particulars
|
Rs.
|
|
Salary
|
2,00,000
|
Sales
|
21,50,000
|
|
Purchases
|
7,90,000
|
Discount received
|
34,000
|
|
Advertisement
|
39,000
|
Creditors
|
2,31,000
|
|
Wages
|
1,34,000
|
Profit and Loss account
|
3,10,000
|
|
Discount allowed
|
29,000
|
General reserve
|
3,00,000
|
|
Bonus paid
|
1,50,000
|
Loan from managing director
|
5,00,000
|
|
Land and building
|
19,00,000
|
Secured Loan
|
7,00,000
|
|
Plant and machinery
|
17,00,000
|
Shared Capital (Equity shares of Rs. 10 each)
|
15,70,000
|
|
Debtors
|
3,70,000
|
|
|
|
Stock as on 1st April 2008
|
1,35,000
|
|
|
|
General expenses
|
25,000
|
|
|
|
Printing and stationery
|
32,000
|
|
|
|
Electricity
|
39,000
|
|
|
|
Audit fees
|
42,000
|
|
|
|
Calls in arrears
|
45,000
|
|
|
|
Bank account
|
1,15,000
|
|
|
|
Interest paid
|
50,000
|
|
|
|
Total
|
57,95,000
|
Total
|
57,95,000
|
Adjustments: 1. Stock as on 31st March 2009 was Rs. 2,50,000.
2. Salary outstanding Rs. 25,000; wages paid in advance Rs. 20,000.
3. Interest on loan was @ 10% per annum.
4. Provide 10% depreciation on for all the fixed assets.
5. Provide 4% for bad and doubtful debts; bad debts was Rs. 20,000.
6. Provide 50% for income tax.
7. The Directors proposed a dividend @7% for the equity shareholders.
Prepare the Trading and Profit and Loss account as on 31st March 2009 and the Balance sheet as on that date.
4. MH Ltd. Provided the trial balance as on 31st March 2009 as follows:
|
Particulars
|
Rs.
|
Rs.
|
|
Share Capital
|
|
14,00,000
|
|
Sales
|
|
23,00,000
|
|
Purchases
|
9,30,000
|
|
|
Sales returns
|
40,000
|
|
|
Purchase returns
|
|
30,000
|
|
Wages
|
1,75,000
|
|
|
Carriage
|
35,000
|
|
|
Plant and Machinery
|
15,00,000
|
|
|
Furniture
|
4,00,000
|
|
|
Rent
|
90,000
|
|
|
Salary
|
2,20,000
|
|
|
Interim dividend paid
|
1,00,000
|
|
|
Discount received
|
|
40,000
|
|
General reserve
|
|
1,50,000
|
|
Bills payable
|
|
60,000
|
|
Bills receivable
|
50,000
|
|
|
Sundry debtors
|
2,60,000
|
|
|
Sundry creditors
|
|
2,30,000
|
|
Patent
|
2,00,000
|
|
|
Trade expenses
|
35,000
|
|
|
Administrative expenses
|
1,35,000
|
|
|
Cash at bank
|
2,10,000
|
|
|
Preliminary expenses
|
1,50,000
|
|
|
Outstanding wages
|
|
20,000
|
|
P & L Account
|
|
3,00,000
|
|
Stock
|
2,00,000
|
|
|
Unsecured loan
|
|
2,00,000
|
|
Total
|
47,30,000
|
47,30,000
|
The following further information are also given
1. The share capital of a company is represented with equity shares of Rs. 10 each. Authorized capital of the company is Rs. 25,00,000.
2. Closing stock Rs. 2,65,000.
3. Provision for tax should be @50%.
4. Provide depreciation for plant and machinery at 10%, furniture 15% and patent 5%.
5. Salary outstanding was Rs.30,000, rent paid in advance is Rs.15,000.
6. The board of directors recommended a final dividend at 20% for the equity shareholders.
7. Provision for general reserve should be as per the requirements of the companies act.
8. Provide 5% for doubtful debts.
9. Managerial remuneration was paid at 10% net profit before tax.
10. Write off 1/3rd of preliminary expenses.
Prepare trading and P&L Account and balance sheet.
5. G Ltd., was registered on 01.07.2007 to acquire the running business of S & Co., with effect from 01.01.2007. The following was the profit & loss a/c of the company on 31.12.2007.
|
Particulars
|
Rs.
|
Particulars
|
Rs.
|
|
To Offices Expenses
|
54,000
|
By Gross Profit B/D
|
2,25,000
|
|
To Formation Expenses
|
10,000
|
|
|
|
To Stationery and Postages
|
5,000
|
|
|
|
To Selling Expenses
|
60,000
|
|
|
|
To Director's Fees
|
20,000
|
|
|
|
To Net Profit
|
76,000
|
|
|
|
Total
|
2,25,000
|
Total
|
2,25,000
|
You are required to prepare a statement showing Profit earned by the company in the pre and post incorporation periods. The total sales of the year took place in the ratio of 1:2 before and after incorporation respectively.
6. The undermentioned balances appeared in the books of the Pioneer Flour Mills Co. Ltd., as on 31.12.1993.
|
Particulars
|
Rs.
|
Particulars
|
Rs.
|
|
Issued, Subscribed and paid up capital
|
6,00,000
|
Motor vehicles
|
15,000
|
|
General reserve
|
2,50,000
|
Furniture
|
5,000
|
|
Unclaimed dividend
|
6,526
|
Opening stock
|
1,72,058
|
|
Creditors
|
36,858
|
Book debts
|
1,57,380
|
|
Building
|
1,00,000
|
Investments
|
2,88,950
|
|
Purchases
|
5,00,903
|
Cash balances
|
67,240
|
|
Sales
|
9,83,947
|
Directors fees
|
1,800
|
|
Manufacturing expenses
|
3,59,000
|
Interim dividend
|
15,000
|
|
Establishment expenses
|
26,814
|
Interest (cr)
|
8,544
|
|
General expenses
|
31,078
|
P&L A/C 1.1.93 (cr)
|
36,848
|
|
Machinery
|
2,00,000
|
Staff provident fund
|
37,500
|
From these balances and the following information, prepare the company's balance sheet and trading and P&L a/c.
(i) Stock of wheat on 31.12.93 Rs.1,48,680.
(ii) Provide Rs.10,000 for depreciation of building, Rs.6,500 for managing agent commission and Rs.1,500 for the company's contribution to provident fund.
(iii) Interest accrued on investment account to Rs.2750.
(iv) A claim of Rs.2,500 for workmen's compensation is being disputed by the company.
7. The following balances were taken from the books of Ranganatha Ltd., for the year ending December 1,1994.
|
Particulars
|
Rs.
|
|
Buildings
|
6,00,000
|
|
Motor vehicles
|
60,000
|
|
Stock at cost
|
4,00,000
|
|
Cash at bank
|
1,72,000
|
|
Advance against building construction
|
1,30,000
|
|
Share capital
|
10,000
|
|
Creditors
|
3,50,000
|
|
Gross profit
|
10,00,000
|
|
Salaries and wages
|
2,20,000
|
|
Electricity charges
|
25,000
|
|
Audit fee
|
15,000
|
|
Furniture
|
60,000
|
|
Equity shares (Invt.)
|
4,00,000
|
|
Debtors (unsecured but good)
|
2,80,000
|
|
Equity shares of Rs.100 each
|
10,00,000
|
|
Profit and Loss (Credit)
|
20,000
|
|
Dividend received
|
10,000
|
|
Director's fees
|
8,000
|
|
Rates and taxes
|
10,000
|
Prepare the Profit and Loss account of the company for the year ending December 31, 1994 and a balance sheet for that date after making the following adjustments:
(i) 10% depreciation on fixed assets.
(ii) Of the debtors Rs.80,000 are of 6 or more months old.
(iii) Ignore the tax provision.
8. The following are the ledger balances of ABC & Co., as on December 31,1993.
|
Particulars
|
Rs.
|
|
Stock
|
50,000
|
|
Sales
|
4,25,000
|
|
Purchases
|
3,00,000
|
|
Wages
|
70,000
|
|
Discount allowed
|
4,200
|
|
Discount received
|
3,150
|
|
Insurance (upto 31.3.94)
|
6,720
|
|
Salaries
|
18,500
|
|
Rent
|
6,600
|
|
General expenses
|
8,950
|
|
Profit and Loss account
|
6,220
|
|
Printing and stationery
|
2,400
|
|
Advertisement
|
3,800
|
|
Bonus
|
10,500
|
|
Debtors
|
38,700
|
|
Creditors
|
35,200
|
|
Plant and Machinery
|
80,500
|
|
Furniture
|
17,100
|
|
Cash on hand
|
1,34,700
|
|
Reserves
|
25,000
|
|
Loan from managing director
|
15,700
|
|
Bad debts
|
3,200
|
|
Calls in arrears
|
5,000
|
ABC & Co., is a company with an authorized capital of Rs.5 lakhs divided into 5,000 equity shares of Rs.100 each. On December 31,1993, the company had called up 2,500 shares.
You are required to prepare trading and Profit and Loss account for the year ended December 31,1993. And the balance sheet as on that date of the company.
The following further information is given:
a) Closing stock Rs.91,500.
b) Depreciation to be charged on plant and furniture at 15% and 10% respectively.
c) Outstanding liabilities: Wages - Rs.5,200.
Salaries - Rs.1,200. Rent - Rs.600.
d) Dividend @5% on paid up capital is to be provided.
9. From the following Balances you are required to prepare the balance sheet of Excel Ltd. as required under schedule Vi of the Companies Act 1956. As on March 2012.
|
Credit
|
Rs.
|
Debit
|
Rs.
|
|
Share capital
|
40,00,000
|
Premises
|
30,72,000
|
|
12% Debentures
|
30,00,000
|
Plant
|
33,00,000
|
|
Profit and Loss a/c
|
2,62,500
|
Stock
|
7,50,000
|
|
Bills payable
|
3,70,000
|
Debtors
|
8,70,000
|
|
Creditors
|
4,00,000
|
Goodwill
|
2,50,000
|
|
Sales
|
41,50,000
|
Cash and Bank
|
4,06,500
|
|
General Reserves
|
2,50,000
|
Calls in arrear
|
75,000
|
|
Bad debts provision on 1-4- 2011
|
35,000
|
Interim dividend paid
|
3,92,500
|
|
|
|
Purchases
|
18,50,000
|
|
|
|
Preliminary expenses
|
50,000
|
|
|
|
Wages
|
9,79,800
|
|
|
|
General expenses
|
68,350
|
|
|
|
Salaries
|
2,02,250
|
|
|
|
Bad Debts
|
21,100
|
|
|
|
Debenture interest paid
|
1,80,000
|
|
Total
|
1,24,67,500
|
|
1,24,67,500
|
Additional Information:
(1) Depreciate Plant by 15%.
(2) Write off Rs. 5,000 from preliminary expenses.
(3) Provide for income tax @ 50%. (4) Stock on 31-3-2011 Rs. 9,50,000
Prepare Final accounts of the company for the year ending 31-3-2012.
10. A Ltd. was registered with an authorized capital of Rs. 6,00,000 in equity shares at Rs. 10 each. The following is its Trial balance on 31st March,2009.
|
Particulars
|
Debit
|
Credit
|
|
Goodwill
|
25,000
|
-
|
|
Cash
|
750
|
-
|
|
Bank
|
39,900
|
-
|
|
Purchase
|
1,85,000
|
-
|
|
Preliminary Expenses
|
5,000
|
-
|
|
Share Capital
|
-
|
4,00,000
|
|
12% Debentures
|
-
|
3,00,000
|
|
Profit and loss account
|
-
|
26,250
|
|
Calls in arrears
|
7,500
|
-
|
|
Premises
|
3,00,000
|
-
|
|
Plant and Machinery
|
3,30,000
|
-
|
|
Interim Dividend
|
39,250
|
-
|
|
Sales
|
-
|
4,15,000
|
|
Stock
|
75,000
|
-
|
|
Furniture
|
7,200
|
-
|
|
Sundry Debtors
|
87,000
|
-
|
|
Wages
|
84,865
|
-
|
|
General expenses
|
6,835
|
-
|
|
Freight and Carriage
|
13,115
|
-
|
|
Salaries
|
14,500
|
-
|
|
Director's fees
|
5,725
|
-
|
|
Bad debts
|
2,110
|
-
|
|
Debenture interest paid
|
18,000
|
-
|
|
Bills payable
|
-
|
37,000
|
|
Sundry Creditors
|
-
|
40,000
|
|
General Reserve
|
-
|
25,000
|
|
Provisional for Bad debts
|
-
|
3,500
|
|
Total
|
12,46,750
|
12,46,750
|
Prepare profit and loss a/c, profit and loss appropriation a/c and balance sheet in proper form after making the following adjustments:
(1) Depreciate plant and machinery by 15%.
(2) Write off Rs. 500 from preliminary expenses.
(3) Provide for 6 months interest on debentures.
(4) Leave bad and doubtful debts provision at 5% on sundry debtors.
(5) Provide income tax at 50%
(6) Stock on 31.03.2010 was Rs. 95,000.