Question 4 The following is the Balance Sheet of a concern on 31st March, 2010: Capital Creditors (Trade) Profit & Loss A/c 10,00,000 Fixed Assets 1,40,000 Stock 4,00,000 3,00,000 1,50,000 3,50,000 12,00,000 12,00,000 The management estimates the purchases and sales for the year ended 31st March, 2011 as under: upto 28.2.2011 60,000 Debtors Cash & Bank March 2011 Purchases Sales It was decided to invest 1,00,000 in purchases of fixed assets, which are depreciated @ 10% on cost. 14,10,000 19,20,000 1,10,000 2,00,000 The time lag for payment to Trade Creditors for purchase and receipt from Sales is one month. The business earns a gross profit of 30% on turnover. The expenses against gross profit amount to 10% of the turnover. The amount of depreciation is not included in these expenses. Draft a Balance Sheet as at 31st March, 2011 assuming that creditors are all Trade Creditors for purchases and debtors for sales and there is no other item of current assets and liabilities apart from stock and cash and bank balances.