PROBLEM 4 The Silver Ore Co. Ltd. was formed on April 1, 2009 with an authorised capital of 6,00,000 in shares of 10 each of these 52,000 shares had been issued and subscribed but there were calls-in arrears on 100 shares. From the following trial balance as on March 31, 2010, prepare the trading and profit and loss account and the balance sheet : 3 Cash at Bank 1,05,500 Advertising 5,000 Share Capital 5,19,750 Carriage on plant 1,800 Plant 40,000 Furniture and Buildings 20,900 Sales of silver 1,79,500 Administrative expenses 28,000 Mines 2,20,000 Repairs to plant 900 Promotion expenses 6,000 Coal and oil 6,500 530 Interest on F.D. upto Dec. 31 3,900 Cash Dividend on investment 3,200 Investments : Shares of tin mines 80,000 Royalties paid 10,000 Brokerage on above 1,000 17,000 6% F.D. in Syndicate Bank 89,000 Railway track and wagons 74,220 Wages of miners (1) Depreciate plant and railways by 10% ; furniture and building by 5% ; (ii) Write off a third of the promotion expenses; (iii) Value of silver ore on March 31, 2010 7 15,000. The directors forfeited on Dec. 20, 2009, 100 shares on which only 7 7.50 had been paid