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From the following figures extracted from the books of Lam Research Limited, you are required to prepare a Statement of Income and Expenditure for the

From the following figures extracted from the books of Lam Research Limited, you are required to prepare a Statement of Income and Expenditure for the year ended 31st March 2018 and a Statement of Sources and Application of funds as on that date after making the necessary adjustments:

ParticularsRs (crores)
Capital a/c228800
Drawings13200
Plant and Machinery99000
Freehold Property66000
Purchases110000
Returns Outwards1100
Salaries13200
Office Expenses2750
Office Furniture5500
Discount A/C (Dr)1320
Sundry Debtors29260
10% Loan to Krishna44000
Cash at bank29260
Sales231440

ParticularsRs(Crores)
Bills Pavable5500
Opening Stock38500
Wages35200
Sundry Creditors44000
Postage and Telegram *1540
Insurance1760
Gas and Fuel2970
Bad Debts660
Office Rent2860
Freight9900
Loose Tools2200
Factory Lighting1100
Provision for Doubtful debts880
Interest on Loan to Krishna1100
Cash in hand2640

Adjustments:

  1. Closing Stock was valued at Rs. 72600.
  2. A new machine was installed during the year costing Rs. 15400 but it was not recorded in the books as no payment was made for it.
  3. Wages Rs. 1150 paid for its installation have been debited to the wages account.
  4. Depreciate plant and machinery by 33-1/3%, Furniture by 10%, Freehold property by 5%
  5. Loose Tools were valued at Rs.1760
  6. Of the Sundry debtors Rs 660 are bad and should be written off
  7. Maintain a provision of 5% on sundry debtors for doubtful debts
  8. The manager is entitled to a commission of 10% of the net profits after charging such a commission

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