Final Accounts of Companies PDF

## FINAL ACCOUNTS OF COMPANIES ### IV/1-36 **Plant and Machinery** 15,00,000 **6% Debentures** 15,00,000 **Premises** 16,50,000 **Sundry Creditors** 2,90,000 **Interim Dividend paid** 1,87,500 **Bills Payable** 1,67,500 **Furniture and Fixtures** 35,000 **Sales** 20,75,000 **Sundry Debtors**...

## FINAL ACCOUNTS OF COMPANIES ### IV/1-36 **Plant and Machinery** 15,00,000 **6% Debentures** 15,00,000 **Premises** 16,50,000 **Sundry Creditors** 2,90,000 **Interim Dividend paid** 1,87,500 **Bills Payable** 1,67,500 **Furniture and Fixtures** 35,000 **Sales** 20,75,000 **Sundry Debtors** 4,36,000 **General Reserve** 1,25,000 You are required to prepare Statement of Profit and Loss for the year ended 31st March, 2017 and the Balance Sheet as at that date, after making the following adjustments: - Depreciate Plant and Machinery by 10%. - Provide half year's interest on debentures. - Make the provision for bad and doubtful debts 4,250 on sundry debtors. - Stock on 31st March, 2017 was 4,55,000. - Corporate dividend tax is to be ignored. **Ans. [Net Profit 2,97,500; B/S Total 42,72,500].** ### ABC Silver Ore Co. Ltd. ABC Silver Ore Co. Ltd. was formed on April 1, 2016 with an authorised capital of 6,00,000 in shares of 10 each. Of these 52,000 shares had been issued and subscribed but there were calls in arrears on 100 shares. From the following trial balance as on March 31, 2017 prepare Profit and Loss Statement and Balance Sheet: | | ₹ | | ₹ | |---|---|---|---| | **Cash at Bank** | 1,05,500 | **Share Capital** | 5,19,750 | | **Plant** | 40,000 | **Sale of Silver** | 1,79,500 | | **Mines** | 2,20,000 | | | | **Promotion Expenses** | 6,000 | **Interest on F.D. upto Dec. 31** | 3,900 | | **Dividend on Investment** | | **Dividend on Investment** | 3,200 | | **Royalties paid** | 10,000 | | | | **Railway Track and Wagons** | 17,000 | | | | **Wages of Miners** | 74,220 | | | | **Advertising** | 5,000 | | | | **Carriage on Plant** | 1,800 | | | | **Furniture and Buildings** | 20,900 | | | | **Administrative Expenses** | 28,000 | | | | **Repairs to Factory Plant** | 900 | | | | **Coal and Oil** | 6,500 | | | | **Cash** | 530 | | | | **Investments: Shares of Tin Mines** | 80,000 | | | | **Brokerage on above** | 1,000 | | | | **6% F.D. in Syndicate Bank on 1-4-2016** | 89,000 | | | | | 7,06,350 | | 7,06,350 | Depreciate Plant and Railway Tracks and Wagons by 10%, Furniture and Building by 5%. Write off one-third of the promotion expenses. Value of silver on March 31, 2017 was 15,000. The directors forfeited 100 shares on December 10, 2016, 100 shares of which only 7,50 had been paid. **Ans. [Net Profit ₹ 69,390; B/S Total 5,89,140]** ### Zee Ltd. Following is the Trial Balance of Zee Ltd. as on 31st March, 2017: | Debit Balances | ₹ | Credit Balances | ₹ | |---|---|---|---| | **Stock on 1-4-2016** | 75,000 | **Sales** | 3,40,000 | | **Purchases** | 2,45,000 | **Purchase Returns** | 10,000 | | **Wages** | 30,000 | **Discount Received** | 3,000 | | **Carriage** | 950 | **Surplus A/c** | 15,000 | | **Furniture** | 17,000 | **Share Capital** | 1,00,000 | | **Salaries** | 7,500 | **Creditors** | 17,500 | | **Rent** | 4,000 | **General Reserve** | 15,500 | ### IV/1-37 **Sundry Trade Expenses** 16,950 **Bills Payable** 7,000 **Debtors** 27,500 **Plant and Machinery** 29,000 **Cash at Bank** 45,300 **Patents** 4,800 **Bills Receivable** 5,000 **Total** 5,08,000 **Total** 5,08,000 Required: Prepare Statement of Profit and Loss for the year ending 31st March, 2017 and a Balance Sheet on that date after considering the following adjustments: - Stock on 31-3-2017 was 88,000. - Provide for income tax @ 35% and corporate dividend tax @ 17%. - Depreciate Plant and Machinery at 15%, Furniture 10% and Patents at 5% - Outstanding rent amounted to 800 and outstanding salaries ₹900. - Provide ₹510 for doubtful debts. - The Board recommends payment of dividend @ 15% per annum. **Ans. [Provision for Taxation ₹ 18,585 ; Net Profit ₹ 34,515 ; Balance Sheet Total ₹ 2,09,800]** ### P.K. Limited Following is the Trial Balance of P.K. Limited as at 31st March, 2017 | Debit Balances | ₹ | Credit Balances | ₹ | |---|---|---|---| | **Opening Stock** | 1,50,000 | **Equity Share Capital** | 5,00,000 | | **Purchases** | 3,80,000 | **Purchase Return** | 10,000 | | **Wages** | 60,000 | **Sales** | 11,50,000 | | **Carriages** | 2,000 | **Discount** | 6,300 | | **Furniture** | 25,000 | **Surplus Account** | 33,700 | | **Salaries** | 12,000 | **Sundry Creditors** | 82,000 | | **Rent** | 15,000 | **General Reserve** | 13,000 | | **Trade Expenses** | 11,000 | **Bills Payable** | 1,70,000 | | **Sundry Debtors** | 54,000 | **Provision for Doubtful Debts** | 3,000 | | **Plant and Machinery** | 12,00,000 | | | | **Cash at Bank** | 21,500 | | | | **Patents** | 9,000 | | | | **Bills Receivable** | 14,000 | | | | **Bad Debts** | 6,500 | | | | **Discount Allowed** | 8,000 | | | | **Total** | 19,68,000 | **Total** | 19,68,000 | Additional Information: - Stock on 31st March, 2017 ₹2,00,000. - Depreciate plant and machinery at 12%, furniture at 10% and patents at 20%. - Further bad debts amounted to 4,000. Provide 5% on debtors for bad debts. - Provide for income tax @ 35% and for corporate dividend tax @ 14%. - The Board of directors recommended a dividend of 25%. Prepare Statement of Profit and Loss for the year ended 31st March, 2017 and Balance Sheet as on that date. **Ans. [Net Profit 3,70,500; Balance Sheet Total 13,68,700]** ### ABC Limited Following are the balances of ABC Limited as on 31st March, 2017: | Debit | ₹ | Credit | ₹ | |---|---|---|---| | **Premises** | 30,72,000 | **Equity Share Capital** | 40,00,000 | | **Plant** | 33,00,000 | **12% Debentures** | 30,00,000 | | **Stock** | 7,50,000 | **Surplus Account** | 2,63,000 | | **Debtors** | 8,70,000 | **Bills Payable** | 3,70,000 | ### IV/1-38 **Goodwill** 2,50,000 **Creditors** 4,00,000 **Bank** 4,52,000 **General Reserve** 2,50,000 **Calls in Arrears** 75,000 **Sales** 41,50,000 **Interim Dividend paid** 6,00,000 **Bad Debts Provision** 35,000 **Purchases** 18,50,000 **Wages** 7,71,000 **General Expenses** 74,000 **Salaries** 2,03,000 **Bad Debts** 21,000 **Debenture Interest paid** 1,80,000 **Total** 1,24,68,000 **Total** 1,24,68,000 Additional Information: - Depreciation Plant by 10%. - Half year's Debenture interest due. - Create 5% provision on Debtors for doubtful debts. - Provide for Income Tax @ 35%. - Stock on 31st March, 2017 was ₹9,50,000. - No final dividend is declared by the company. - Ignore Corporate Dividend Tax. Prepare Statement of Profit & Loss and Balance Sheet as per schedule. **Ans. [Net Profit ₹ 4,76,125; Balance Sheet Total 85,20,500]** ### Modern Dress Bhandar Ltd. Following are the balances of M/s Modern Dress Bhandar Ltd. as on 31-3-2017: | Debit Balances | ₹ | Credit Balances | ₹ | |---|---|---|---| | **Premises** | 30,72,000 | **Share Capital** | 40,00,000 | | **Plant** | 33,00,000 | **12% Debentures** | 30,00,000 | | **Stock** | 7,50,000 | **Surplus Account** | 2,62,500 | | **Debtors** | 8,70,000 | **Bills Payable** | 3,70,000 | | **Goodwill** | 2,50,000 | **Creditors** | 4,00,000 | | **Bank** | 4,51,600 | **Sales** | 41,50,000 | | **Calls in Arrears** | 75,000 | **General Reserve** | 2,50,000 | | **Interim Dividend paid** | 3,92,500 | **Bad Debts Provisions on 1-4-2016** | 35,000 | | **Purchases** | 18,50,000 | | | | **Wages** | 9,79,800 | | | | **General Expenses** | 73,350 | | | | **Salaries** | 2,02,250 | | | | **Bad Debts** | 21,000 | | | | **Debenture Interest paid** | 1,80,000 | | | | **Total** | 1,24,67,500 | **Total** | 1,24,67,500 | Additional Information: - Depreciation Plant by 10%. - Half year's Debenture interest due. - Create 5% provision on Debtors for doubtful debts. - Provide for Income Tax @ 35%. - Stock on 31st March, 2017 was 9,50,000. - No final dividend is declared by the company. - Ignore Corporate Dividend Tax. Prepare Statement of Profit & Loss and Balance Sheet as per schedule. **Ans. [Net Profit ₹ 4,76,125; Balance Sheet Total 85,20,500]** ### Modern Dress Bhandar Ltd. Following are the balances of M/s Modern Dress Bhandar Ltd. as on 31-3-2017: | Debit Balances | ₹ | Credit Balance | ₹ | |---|---|---|---| | **Premises** | 30,72,000 | **Share Capital** | 40,00,000 | | **Plant** | 33,00,000 | **12% Debentures** | 30,00,000 | | **Stock** | 7,50,000 | **Surplus Account** | 2,62,500 | | **Debtors** | 8,70,000 | **Bills Payable** | 3,70,000 | | **Goodwill** | 2,50,000 | **Creditors** | 4,00,000 | | **Bank** | 4,51,600 | **Sales** | 41,50,000 | | **Calls in Arrears** | 75,000 | **General Reserve** | 2,50,000 | | **Interim Dividend paid** | 3,92,500 | **Bad Debts Provisions on 1-4-2016** | 35,000 | | **Purchases** | 18,50,000 | | | | **Wages** | 9,79,800 | | | | **General Expenses** | 73,350 | | | | **Salaries** | 2,02,250 | | | | **Bad Debts** | 21,000 | | | | **Debenture Interest paid** | 1,80,000 | | | | **Total** | 1,24,67,500 | **Total** | 1,24,67,500 |