PROBLEM 10 X and Y who are software engineers, commenced practice on 1-4-2009 with an initial capital of 415 lakhs onsche Same ane they borrowed 5 lakhs repayable in flexible instalments. With the amount borrowed they purchased office furniture and personal computers on 1-4-2009 for 5 lakhs. They also took on lease office accommodation by paying 60,000 being rental advance for three months. Details of other information furnished by X and Y are as follows: (a) An amount of * 1 lakh being the fees receivable as on 31-3-2010 represented one month's billing on an average. (6) One month rent was outstanding as on 31-3-2010. [Rent is payable apart from the advance (c) Office expenses (excluding rent, interest and depreciation) constituted 30% of total billings. (d) Entire tax on income for the year was paid in advance and the tax rate was 30%. (e) Depreciation on furniture and computers is to be allowed at 15%. Partners have drawn 10,000 each per month. (g) Debt service coverage ratio is 3 times. (h) Interest coverage ratio is 7 times. (i) Acid test ratio as on 31-3-2010 is 3 times. 6) Partners invested firm's excess cash in 5 years 8% government bonds. You are required to prepare: A. The financial statements of the firm for the year ended 31-3-2010. B. The cash account summary to quantify the amount invested in government bonds. For your exercise treat the provision for tax and advance tax paid separately as current liability and current asset