Question
A Ltd. was registered with an Authorized capital of Rs. 6, 00,000 in equity shares of Rs. 10 each. The following is its Trial Balance
A Ltd. was registered with an Authorized capital of Rs. 6, 00,000 in equity shares of Rs. 10 each. The following is its Trial Balance on 31 December 2018.
Goodwill 25,000 -
Cash 750 -
Bank 39,900 -
Purchases 1,85,000 -
Preliminary Expenses 5,000 -
Share Capital - 4,00,000
12% Debentures - 3,00,000
P & L account (Cr) - 26,250
call-in-arrears 7500 -
Premises 3,00,000 -
Plant and Machinery 3,30,000 -
Interim Dividend 39,250 -
Sales - 4,15,000
Stock 1.1.2018 75,000 -
Furniture and Fixture 7,200 -
Sundry Debtors 87,000 -
Wages 84,865 -
General Expenses 6,835 -
Freight & Carriage 13,115 -
Salaries 14,500 -
Director fee 5,725 -
Bad debts 2,110 -
Debenture Interest Paid 18,000 -
Bill Payable - 37,000
Sundry Creditors - 40,000
General Reserve - 25,000
Provision for bad debts - 3,500
12,46,750 12,46,750
Prepare Profit & Loss Account, Profit & Loss Appropriation A/c and Balance Sheet in proper form after making the following adjustments:
1. Depreciate plant and machinery by 15%
2. Write off Rs.500 from preliminary expenses
3. Provide for 6 months interest on debentures
4. Leave bad and doubtful debts provision at 5% on sundry debtors
5. Provide for income tax at 50%
6. Stock on 31.12.2018 was Rs. 95,000
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