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olutions of both the questions (A) and (B)

olutions of both the questions (A) and (B)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solutions of both the questions (A) and (B)
SANJAY INDUSTRIES LTD. (Balance Sheet and Income Statement) The followingare the balances of Ledger book of Sanjay Industries Ltd. as on 31st March 2006. 6,75,000 Carriage Inward Profit & loss account (31st March 2005) Salaries Bills Receivables Stock. 1st April 2005 Purchases 8,550 54,000 22,05,000 Sales Wages Share capital (Authorized Capital 2,00,000 shares of Rs.10 each) 30,60,000 2,70,000 9,00,000 67,500 45,000 63,450 Sundry Expenses Bills Payable Rent Discount 27,000 90,000 43,200 1,57,500 2,61,000 1,39,500 63,000 36,000 2,47,500 1,53,000 4,15,800 Purchases returns Patents & trademark Debtors Creditors Furniture & Fittings Plant & Machinery General Reserve Cash at Bank Further information- 1. Outstanding rent amounted to Rs.7,200 while outstanding salaries are Rs. 8,100 at the end of the year. 2. Make a provision for doubtful debts amounting to Rs. 4,590. 3. Stock on 31st March 2006 was valued at Rs. 7,92,000. 4. Depreciate plant & machinery @ 14% and furniture & fittings @18%. 5. Amortize patents & trademarks @ 5%. 6. Provide for managerial remuneration @ 10% of the net profit before such commission. 7. Make a provision for income tax @ 35% on net profit. 8. The board of directors proposes a dividend @ 10% for the year ended 31**March 2006 after transfer to General Reserve @ 5% of profit after tax. You are required to- (Show your workings clearly) Q A. Prepare following Financial Statements of Sanjay Industries Ltd. a. Trading and Profit & Loss Account for the year ending 31 March 2006 b. Balance sheet as on 31st March 2006 Q B. Comment on the Profits of the company such as- a. Gross Profit VS Net Profit b. Net Profit before tax VS Net Profit After Tax
Transcribed Image Text:SANJAY INDUSTRIES LTD. (Balance Sheet and Income Statement) The followingare the balances of Ledger book of Sanjay Industries Ltd. as on 31st March 2006. 6,75,000 Carriage Inward Profit & loss account (31st March 2005) Salaries Bills Receivables Stock. 1st April 2005 Purchases 8,550 54,000 22,05,000 Sales Wages Share capital (Authorized Capital 2,00,000 shares of Rs.10 each) 30,60,000 2,70,000 9,00,000 67,500 45,000 63,450 Sundry Expenses Bills Payable Rent Discount 27,000 90,000 43,200 1,57,500 2,61,000 1,39,500 63,000 36,000 2,47,500 1,53,000 4,15,800 Purchases returns Patents & trademark Debtors Creditors Furniture & Fittings Plant & Machinery General Reserve Cash at Bank Further information- 1. Outstanding rent amounted to Rs.7,200 while outstanding salaries are Rs. 8,100 at the end of the year. 2. Make a provision for doubtful debts amounting to Rs. 4,590. 3. Stock on 31st March 2006 was valued at Rs. 7,92,000. 4. Depreciate plant & machinery @ 14% and furniture & fittings @18%. 5. Amortize patents & trademarks @ 5%. 6. Provide for managerial remuneration @ 10% of the net profit before such commission. 7. Make a provision for income tax @ 35% on net profit. 8. The board of directors proposes a dividend @ 10% for the year ended 31**March 2006 after transfer to General Reserve @ 5% of profit after tax. You are required to- (Show your workings clearly) Q A. Prepare following Financial Statements of Sanjay Industries Ltd. a. Trading and Profit & Loss Account for the year ending 31 March 2006 b. Balance sheet as on 31st March 2006 Q B. Comment on the Profits of the company such as- a. Gross Profit VS Net Profit b. Net Profit before tax VS Net Profit After Tax
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