Following trial balance as at 31st March 2006 has been prepared from the account books of Mahesh Foods Ltd.

Further information

1. The authorized capital of the company is 3 lac equity shares of ` 10 each of which 2.40 lac shares have been issued.
2. The closing stock of finished goods is valued at ` 33,50,000.
3. Depreciation to be charged: plant and machinery @ 14%, furniture & fixtures @ 18% and building @ 10%.
4. Provide for income tax @ 35%.
5. Transfer to general reserve @ 5% of net profit. Round off to next higher 100 rupees.
6. A dividend of 15% is recommended by the board of directors.
Required

1. Prepare the following financial statements of Mahesh Foods Ltd.:

a. Balance sheet as at 31st March 2006.

b. Profit and loss account for the year ended 31st March 2006.

c. Profit and loss appropriation account for the year ended 31st March 2006.
2. Briefly comment upon the performance of the company.

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Accounts Share capital Cash in hand Repairs & maintenance-plant Dr. (?) Dr. (*) 24,00,000 37,200 51,600 General reserve 6,00,000 Profit and loss account 10,60,000 Raw materials inventory, 31.03.2006 16,02,000 Plant and machinery 25,80,000 Sundry creditors 18,40,000 Land Furniture 4,80,000 73,200 Sundry debtors 10,40,000 Rent 1,31,800 Prepaid expenses 27,600 Advances from customers 3,00,000 Power and fuel 1,52,800 Travelling and conveyance 94,600 Auditors' fees 39,000 Cash at bank Advances to staff 2,48,000 31,800 Misc. Income 3,72,600 Finished goods inventory, 1.04.2005 18,60,000 Raw materials 1,71,60,000 Sales 2,53,80,000 Building 4,44,600 Salaries 42,20,000 Wages 17,65,000 Deposits with govt. authorities Cash credit-Indian bank-secured Bank interest 2,68,400 4,00,000 45,000 Total... 3,23,52,600 3,23,52,600