You are required to prepare Profit & Loss Statement for the year ended 31st March, 2017 andFollowing is the Trial Balance from the books of Diksha Ltd. as on 31 st March, 2017:DebitCreditLand and Buildings (at cost)Plant and Machinery (at cost)Motor Car (at cost)Goodwill (at cost)Salaries and WagesRent and TaxesTravelling ExpensesPrinting and StationeryMotor Car ExpensesRepairs (Machinery)StockDebtorsCashBills Receivables - Trade4,00,000 Share Capital:5,20,000 50,000 Equity Shares of1,00,000 10 each2,60,000 8% Debentures (01-04-2016)72,000 Provision for Tax18,000 (Accounting year 2015-16)16,000 Sundry Creditors17,000 Bills Payable8,000 General Reserve16,500 Securities Premium94,000 Capital Reserve1,45,000 Profit & Loss A/c (on 01-04-16)8,000 Provision for Depreciation30,000 (on 01-04-16)1,50,000 (i) Land and Buildings16,000 (ii) Plant and Machinery(iii) Motor Car72,000 Gross Profit60,000 Interest on InvestmentsSale of Motor Car5,00,0004,00,00070,00090,00040,0001,80,00020,00015,00055,00010% InvestmentsInterest on DebenturesAdvance TaxFor- 2015-16 (F.Y.)For - 2016-17 (F.Y.)40,0001,30,00010,0004,10,0007,50035,00020,02,50020,02,500Adjustments:(a) Motor Car was sold on 1st April, 2016. The cost of sold Motor Car was 30.000 and Accumulateddepreciation on 1st April, 2016 was 6,000 on the same.(b) Depreciation is to be provided on writteh down value at (i) Land and Building 22% p.a., (ii) Platand Machinery 10% p.a. and (iii) Motor Car 20% p.a.(c) Debtors include debts due for more than 6 months 20.000.idi Plant and Machinery includes machinery worth 20,000 purchased on 1st April, 2016.(e) Dividend is proposed for the year e T0%. Ignore tax on proposed dividend.(6 Provision for Taxation is to be made @ 40% on the current year's profit.(g) Debentures are secured by a charge on the Land and Buildings.(b) The market value of Investments on 31-03-2017 was 1,80.00o.O Interest on Investment is due for 6 months but not receivedO Interest on debentures for 6 months is Accrued and due.A Authorised share capital of the company is 10,00,000 divided into 1,00,000 Equity sharesof10 each.You ale Sheet as on that date as per the applicable provisions. Ignore previous year's figures

Name: You are required to prepare Profit & Loss Statement for the year ende
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Description: You are required to prepare Profit & Loss Statement for the year ended 31st March, 2017 andFollowing is the Trial Balance from the books of Diksha Ltd. as on 31 st March, 2017:DebitCreditLand and Buildings (at cost)Plant and Machinery (at cost)Motor

Balance sheet is defined as one the most important financial statement prepared at the end of the…

Answered: You are required to prepate t & LoSs…

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Accounting

You are required to prepate t & LoSs Statement for the year ended 31st March, 2017 a Relance Sheet as on that date as per the applicable provisions. Ignore previous vear's figurAS

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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