Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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:
Particulars | Rs (crores) |
Capital a/c | 228800 |
Drawings | 13200 |
Plant and Machinery | 99000 |
Freehold Property | 66000 |
Purchases | 110000 |
Returns Outwards | 1100 |
Salaries | 13200 |
Office Expenses | 2750 |
Office Furniture | 5500 |
Discount A/C (Dr) | 1320 |
Sundry Debtors | 29260 |
10% Loan to Krishna | 44000 |
Cash at bank | 29260 |
Sales | 231440 |
Particulars | Rs(Crores) |
Bills Pavable | 5500 |
Opening Stock | 38500 |
Wages | 35200 |
Sundry Creditors | 44000 |
Postage and Telegram * | 1540 |
Insurance | 1760 |
Gas and Fuel | 2970 |
Bad Debts | 660 |
Office Rent | 2860 |
Freight | 9900 |
Loose Tools | 2200 |
Factory Lighting | 1100 |
Provision for Doubtful debts | 880 |
Interest on Loan to Krishna | 1100 |
Cash in hand | 2640 |
Adjustments:
- Closing Stock was valued at Rs. 72600.
- 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.
- Wages Rs. 1150 paid for its installation have been debited to the wages account.
- Depreciate plant and machinery by 33-1/3%, Furniture by 10%, Freehold property by 5%
- Loose Tools were valued at Rs.1760
- Of the Sundry debtors Rs 660 are bad and should be written off
- Maintain a provision of 5% on sundry debtors for doubtful debts
- The manager is entitled to a commission of 10% of the net profits after charging such a commission
Step by Step Solution
★★★★★
3.49 Rating (172 Votes )
There are 3 Steps involved in it
Step: 1
Statement of Income and Expenditure for the Year Ended 31st March 2018 Amount Rs in crores Sales 231...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started