Small Toy Private Limited (STPC) has been manufacturing toys as well as buying from the market since 2001. The owners of the company are satisfied both with its profit margins its reputation in the market. They are planning for expansion of the business for which a high-tech machine costing ₹30 lakh is required to be purchased. The machine is expected to reduce cost of production as well as enhance productivity. Though the company has bank balance of ₹7 lakh, it is not adequate to meet the cost of machine and additional working capital requirements. The company is seeking a loan of ₹25 lakh from a bank. The bank is agreeable to considering the loan proposal and is asking for detailed financial statements (manufacturing account, trading account, P\&L A/c and balance sheet). Unfortunately, the Senior Accountant who has already prepared the trial balance as at 31st March 2013 (duly adjusted for adjustment items except closing stock) is hospitalised for heart surgery and is likely to join in Aprilend. Since the owners do not want to delay the purchase of machine, they engage the services of Mr. Solution (chartered account) to prepare for them the required financial statements. The adjusted trial balance provided to him is as follows:

The company is subject to tax at the rate of 35 per cent.
The closing stock on March 31, 2013: raw materials ₹2,40,000, work-in-process, ₹1,50,000, finished goods, ₹ \(3,45,000\).

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Trial Balance (adjusted) of STPC as on March 31, 2013 Particulars Opening stock of raw materials Opening stock of work-in-progress Dr. Amount *3,00,000 3,90,000 Cr. Amount