a provision fcProblem.No.8& Co. is a company with an authorized capital of Rs.5.00.000 divided into 5,000 Equity Shares of Rs.100 eacOn 31-3-2019 2,500 shares were fully called up.Following are the balances extracted from the ledger of the company as on 31-3-2019:Stock50,000 Advertising4,25,000 Debtors3,00,000 Creditors70,000 Plant & Machinery4,200 | Furniture3,150 Cash and Bank6,720 Reserve18,500 Loan from Managing Director6,000 Bad debts8,950 Calls in Arrears6,2202,400Sales14,30038,70035,20080,50017,1001,34,70025,00015,7003,2005,000PurchasesWages(Productive)Discount AllowedDiscount ReceivedInsurance upto 30-06-2013SalariesRentGeneral expensesSurplus AccountPrinting & StationeryYou are required to prepare Statement of Profit and Loss for the year ended 31-3-2019 and the Balance Sheet a.on that date of the company. Following further information is given:i.Closing Stock Rs.91,500ii.Depreciation to be charged on Plant and Machinery and Furniture at 15% and 10% respectively.ii.Outstanding Liabilities –Wages Rs.5,200 , Salary Rs.1,200 and Rent Rs.600.iv.-Dividend @ 5% on paid up Share Capital is to be provided.Ignore corporate dividend tax.12 corporate dividend tax.Following balances are extracted on 31st march, 2019 from the books of CEE BEE Ltd.Debite dnRs.CreditFactory premises at costPlant & machinery at costMotor lorries at costRs.Share capital:4,50,0003,49,160 30,000 , 7% preference shares of73,0001,21,780 60,000 equity shares of rs.10 each2,850 Surplus A/c28,400 Gross profit for the year19,500 Provision for doubtful debts68,500 Sundry creditors3,600 Transfer fees10,000 Accrued wages1,14,600 Staff benevolent fund7,98032,0003,00,000endrs.10 each6,00,000Sundry debtorsBad debts written off16,2402,46,6409,0001,29,640110Rent, rates and taxesAdvertisementsCash in hand and at bankDirectors feesAudit fees12,84017,900Stock on 31-32013Rent and taxes paid inadvancesSalaries and wagesDividend paid on:On preference sharesOn equity shares(interim)21,00015,00015,000Patents13,32,37013,32,370The provision for doubtful debts is to be made upto Rs.10,200. The factory premises , plant and machinery and motorJorries are to be depreciated by 3%, 15% and 20% respectively. The authorised capital of the company is Rs.10,00,000divided into 1,00,000 shares of Rs.10 each. You are required to prepare :You are required to prepare Statement of Profit and Loss for the year ended 31-3-2019 and the Balance Sheet ason that date of the company. Ignore taxation and transfer to serves as required by law. You need not provide

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Following balances are extracted on 31st march, 2019 from the books of CEE BEE Ltd. Debit Rs. Credit Factory premises at cost Plant& machinery at cost Motor lorries at cost Rs. 4,50,000 Share capital: 3,49,160 30,000 , 7% preference shares of 73,000 rs.10 each 1,21,780 60,000 equity shares of rs.10 each 2,850 Surplus A/c 28,400 19,500 68,500 Sundry creditors 3,600 Transfer fees 10,000 Accrued wages 1,14,600 Staff benevolent fund 7,980 32,000 3,00,000 6,00,000 Sundry debtors Bad debts written off Rent, rates and taxes Advertisements Cash in hand and at bank Directors fees Audit fees Stock on 31-32013 16,240 2,46,640 9,000 1,29,640 110 Gross profit for the year Provision for doubtful debts 12,840 17,900 Rent and taxes paid inadvances Salaries and wages Dividend paid on: On preference shares On equity shares(interim) Patents 21,000 15,000 15,000 13,32,370 13,32,370 The provision for doubtful debts is to be made upto Rs.10,200. The factory premises, plant and machinery and motor lorries are to be depreciated by 3%, 15% and 20% respectively. The authorised capital of the company is Rs.10,00,000 divided into 1,00,000 shares of Rs.10 each. You are required to prepare : You are required to prepare Statement of Profit and Loss for the year ended 31-3-2019 and the Balance Sheet as on that date of the company. Ignore taxation and transfer to serves as required by law. You need not provide corporate dividend tax.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q