A . C. D E Opening inventories of finished goods Add: Cost of goods produced during the year Less : Closing inventories of finished goods Cost of goods sold (A + B - C] Add : Selling expenses @ 10% of sales Cost of Sales [D + E) Profit (balancing figure) Sales F + G] Rs. 7,000 2,24,750 8,000 2,23,750 27,500 2,51,250 23,750 2.75,000 F G H. PROBLEM 1.16 The following figures are extracted from the Trial Balance of X Ltd. on 31st March 20X1. Inventories: Rs. Rs. Finished stock 80,000 Indirect labour 18,000 Raw materials 1,40,000 Factory supervision 10,000 Work-in-process 2,00,000 Repairs and upkeep-factory 14,000 Office appliances 17,400 Heat, light and power 65,000 Plant & machinery 4,60,500 Rates and taxes 6,300 Buildings 2,00,000 Miscellaneous factory expenses 18,700 Sales 7,68,000 Sales commission 33,600 Sales return & rebates 14,000 Sales travelling 11,000 927 Rs. Rs. Materials purchased 3,20,000 Sales promotion 22,500 Freight incurred on materials 16,000 Distribution dept salaries and expenses 18,000 Purchase returns 4.800 Office salaries and expenses 8,600 Direct labour 1,60,000 Interest on borrowed funds 2,000 Further details are available as follows: (i) Closing Inventories: (iii) Depreciation to be provided on: Finished goods 1,15,000 Office appliances 5% Raw materials 1,80,000 Plant and machinery 10% Work-in-process 1,92,000 Buildings 4% (ii) Accrued expenses on: (iv) Distribution of the following costs: Direct labour 8,000 Heat, light and power to factory, office Indirect labour 1,200 and selling in the ratio 8:1:1. Interest on borrowed funds 2,000 Rates and taxes two-thirds to factory and one-third of office Depreciation on buildings to factory, Office and selling in the ratio 8:1:1. With the help of the above information, you are required to prepare a condensed Profit and Loss