The following is the trial balance of Sanjay Industries Ltd. as on 31st March 2006.

Further information

1. Outstanding rent amounted to ₹7,200 while outstanding salaries ₹8,100 at the end of the year.
2. Make a provision for doubtful debts amounting to ` 4,590.
3. Stock on 31st March 2006 was valued at ₹7,92,000.
4. Depreciate plant & machinery @ 14% and furniture & fittings @18%.
5. Amortise patents & trademarks @ 5%.

6. Provide for managerial remuneration @ 10% of the net profits before tax.
7. Make a provision for income tax @ 35%.
8. The Board of Directors proposes a dividend @ 10% for the year ended 31st March 2006 after transfer to General Reserve @ 5% of profit after tax.
Required

1. Prepare the following financial statements of Sanjay Industries Ltd.:

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

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

c. Balance sheet as on 31st March 2006.
2. Briefly comment upon the performance of the company.

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Accounts Stock, 1st April 2005 Sales Wages Share capital (Authorised Capital 2,00,000 shares of 10 each) Dr. (*) Cr. (*) 6,75,000 30,60,000 2,70,000 9,00,000 27,000 Discount Purchases Carriage inward Purchases returns 22,05,000 8,550 90,000 Patents & trademark Salaries Bills receivable Sundry expenses Bills payable Rent Debtors & creditors Plant & machinery Furniture & fittings 43,200 67,500 45,000 63,450 63,000 36,000 2,47,500 1,57,500 2,61,000 1,53,000 Cash at bank 4,15,800 General reserve 1,39,500 Profit & loss account, 31st March 2005 Total 44,91,000 54,000 44,91,000