Prepare the balance sheet of excel ltd

Reference no: EM131217933

1. K Limited provided the following information as on 31.3.2009

Particulars	Rs.	Rs.
Share capital: 2,50,000 equity shares of Rs. 10 each.		25,00,000
Profit & Loss a/c		3,50,000
Land & Building	12,00,000
Plant & Machinery	9,00,000
Motor Vehicles	4,50,000
Gross profit		19,00,000
Salary	2,90,000
Directors fees	60,000
Rent	1,35,000
Stock	1,90,000
Sundry Debtors	2,00,000
Dividend received		55,000
Audit fees	45,000
Cash account	3,50,000
Sundry Creditors		1,25,000
Loan		4,80,000
Advances paid for the purchase of machine	9,00,000
Electricity Charges	50,000
Investment on shares of companies	6,00,000
Interest paid	40,000
Total	54,10,000	54,10,000

The following further information are also given;
1. Stock has been revalued as 1,70,000.
2. Depreciation @10% should be provided for all fixed assets.
3. Provision for general reserve was 1,70,000.
4. The company paid an interim dividend for Rs.3,50,000.
Prepare the profit and loss account and balance sheet as on 31.3.2009.

2. The trial balance for ABC Ltd as on 31.3.2009 is stated as follows:

Particulars	Rs.	Particulars	Rs.
Purchases	7,50,000	Equity share capital(2,00,000 @ 10 each)	20,00,000
Salary	1,40,000	Sales	17,50,000
Wages	1,70,000	General Reserve	2,40,000
Bad Debts	40,000	P&L Account	3,90,000
Building	15,00,000	Sundry Creditors	1,30,000
Machinery	13,00,000	Wages o/s	40,000
Loose Tools	3,00,000	12% Debentures	4,00,000
Depreciation	90,000	Interest on debentures accrued but no due	24,000
Directors fees	1,10,000	Interest on investment	43,000
Electricity	55,000	Unclaimed Dividend	45,000
Commission Paid	65,000	Depreciation on Building	5,00,000
Opening Stock	1,50,000	Depreciation on Machinery	4,30,000
Audit fees	60,000
Debenture interest	48,000
Sundry Expenses	45,000
Advance tax	79,000
Sundry debtors	3,00,000
Bank	3,00,000
Investments	4,50,000
Interest accrued on investments	40,000
Total	59,92,000	Total	59,92,000

1. Closing stock is valued at Rs.2,20,000.
2. Final dividend at 13% was recommended by directors.
3. Provision for income tax 1,25,000.
4. Provide 5% on bad and doubtful debts.
5. Depreciation for building Rs. 50,000 and Machinery Rs. 40,000.
6. Authorized Share capital of the company is Rs.40,00,000.

3. The Trial balance of ABC Ltd. As on 31st March 2009 stated as follows:

Particulars	Rs.	Particulars	Rs.
Salary	2,00,000	Sales	21,50,000
Purchases	7,90,000	Discount received	34,000
Advertisement	39,000	Creditors	2,31,000
Wages	1,34,000	Profit and Loss account	3,10,000
Discount allowed	29,000	General reserve	3,00,000
Bonus paid	1,50,000	Loan from managing director	5,00,000
Land and building	19,00,000	Secured Loan	7,00,000
Plant and machinery	17,00,000	Shared Capital (Equity shares of Rs. 10 each)	15,70,000
Debtors	3,70,000
Stock as on 1st April 2008	1,35,000
General expenses	25,000
Printing and stationery	32,000
Electricity	39,000
Audit fees	42,000
Calls in arrears	45,000
Bank account	1,15,000
Interest paid	50,000
Total	57,95,000	Total	57,95,000

Adjustments: 1. Stock as on 31st March 2009 was Rs. 2,50,000.
2. Salary outstanding Rs. 25,000; wages paid in advance Rs. 20,000.
3. Interest on loan was @ 10% per annum.
4. Provide 10% depreciation on for all the fixed assets.
5. Provide 4% for bad and doubtful debts; bad debts was Rs. 20,000.
6. Provide 50% for income tax.
7. The Directors proposed a dividend @7% for the equity shareholders.
Prepare the Trading and Profit and Loss account as on 31st March 2009 and the Balance sheet as on that date.

4. MH Ltd. Provided the trial balance as on 31st March 2009 as follows:

Particulars	Rs.	Rs.
Share Capital		14,00,000
Sales		23,00,000
Purchases	9,30,000
Sales returns	40,000
Purchase returns		30,000
Wages	1,75,000
Carriage	35,000
Plant and Machinery	15,00,000
Furniture	4,00,000
Rent	90,000
Salary	2,20,000
Interim dividend paid	1,00,000
Discount received		40,000
General reserve		1,50,000
Bills payable		60,000
Bills receivable	50,000
Sundry debtors	2,60,000
Sundry creditors		2,30,000
Patent	2,00,000
Trade expenses	35,000
Administrative expenses	1,35,000
Cash at bank	2,10,000
Preliminary expenses	1,50,000
Outstanding wages		20,000
P & L Account		3,00,000
Stock	2,00,000

Unsecured loan		2,00,000
Total	47,30,000	47,30,000

The following further information are also given

1. The share capital of a company is represented with equity shares of Rs. 10 each. Authorized capital of the company is Rs. 25,00,000.
2. Closing stock Rs. 2,65,000.
3. Provision for tax should be @50%.
4. Provide depreciation for plant and machinery at 10%, furniture 15% and patent 5%.
5. Salary outstanding was Rs.30,000, rent paid in advance is Rs.15,000.
6. The board of directors recommended a final dividend at 20% for the equity shareholders.
7. Provision for general reserve should be as per the requirements of the companies act.
8. Provide 5% for doubtful debts.
9. Managerial remuneration was paid at 10% net profit before tax.
10. Write off 1/3rd of preliminary expenses.

Prepare trading and P&L Account and balance sheet.

5. G Ltd., was registered on 01.07.2007 to acquire the running business of S & Co., with effect from 01.01.2007. The following was the profit & loss a/c of the company on 31.12.2007.

Particulars	Rs.	Particulars	Rs.
To Offices Expenses	54,000	By Gross Profit B/D	2,25,000
To Formation Expenses	10,000
To Stationery and Postages	5,000
To Selling Expenses	60,000
To Director's Fees	20,000
To Net Profit	76,000
Total	2,25,000	Total	2,25,000

You are required to prepare a statement showing Profit earned by the company in the pre and post incorporation periods. The total sales of the year took place in the ratio of 1:2 before and after incorporation respectively.

6. The undermentioned balances appeared in the books of the Pioneer Flour Mills Co. Ltd., as on 31.12.1993.

Particulars	Rs.	Particulars	Rs.
Issued, Subscribed and paid up capital	6,00,000	Motor vehicles	15,000
General reserve	2,50,000	Furniture	5,000
Unclaimed dividend	6,526	Opening stock	1,72,058
Creditors	36,858	Book debts	1,57,380
Building	1,00,000	Investments	2,88,950
Purchases	5,00,903	Cash balances	67,240
Sales	9,83,947	Directors fees	1,800
Manufacturing expenses	3,59,000	Interim dividend	15,000
Establishment expenses	26,814	Interest (cr)	8,544
General expenses	31,078	P&L A/C 1.1.93 (cr)	36,848
Machinery	2,00,000	Staff provident fund	37,500

From these balances and the following information, prepare the company's balance sheet and trading and P&L a/c.
(i) Stock of wheat on 31.12.93 Rs.1,48,680.
(ii) Provide Rs.10,000 for depreciation of building, Rs.6,500 for managing agent commission and Rs.1,500 for the company's contribution to provident fund.
(iii) Interest accrued on investment account to Rs.2750.
(iv) A claim of Rs.2,500 for workmen's compensation is being disputed by the company.

7. The following balances were taken from the books of Ranganatha Ltd., for the year ending December 1,1994.

Particulars	Rs.
Buildings	6,00,000
Motor vehicles	60,000
Stock at cost	4,00,000
Cash at bank	1,72,000
Advance against building construction	1,30,000
Share capital	10,000
Creditors	3,50,000
Gross profit	10,00,000
Salaries and wages	2,20,000
Electricity charges	25,000
Audit fee	15,000
Furniture	60,000
Equity shares (Invt.)	4,00,000
Debtors (unsecured but good)	2,80,000
Equity shares of Rs.100 each	10,00,000
Profit and Loss (Credit)	20,000
Dividend received	10,000
Director's fees	8,000
Rates and taxes	10,000

Prepare the Profit and Loss account of the company for the year ending December 31, 1994 and a balance sheet for that date after making the following adjustments:
(i) 10% depreciation on fixed assets.
(ii) Of the debtors Rs.80,000 are of 6 or more months old.
(iii) Ignore the tax provision.

8. The following are the ledger balances of ABC & Co., as on December 31,1993.

Particulars	Rs.
Stock	50,000
Sales	4,25,000
Purchases	3,00,000
Wages	70,000
Discount allowed	4,200
Discount received	3,150
Insurance (upto 31.3.94)	6,720
Salaries	18,500
Rent	6,600
General expenses	8,950
Profit and Loss account	6,220
Printing and stationery	2,400
Advertisement	3,800
Bonus	10,500
Debtors	38,700
Creditors	35,200
Plant and Machinery	80,500
Furniture	17,100
Cash on hand	1,34,700
Reserves	25,000
Loan from managing director	15,700
Bad debts	3,200
Calls in arrears	5,000

ABC & Co., is a company with an authorized capital of Rs.5 lakhs divided into 5,000 equity shares of Rs.100 each. On December 31,1993, the company had called up 2,500 shares.

You are required to prepare trading and Profit and Loss account for the year ended December 31,1993. And the balance sheet as on that date of the company.

The following further information is given:

a) Closing stock Rs.91,500.

b) Depreciation to be charged on plant and furniture at 15% and 10% respectively.

c) Outstanding liabilities: Wages - Rs.5,200.
Salaries - Rs.1,200. Rent - Rs.600.

d) Dividend @5% on paid up capital is to be provided.

9. From the following Balances you are required to prepare the balance sheet of Excel Ltd. as required under schedule Vi of the Companies Act 1956. As on March 2012.

Credit	Rs.	Debit	Rs.
Share capital	40,00,000	Premises	30,72,000
12% Debentures	30,00,000	Plant	33,00,000
Profit and Loss a/c	2,62,500	Stock	7,50,000
Bills payable	3,70,000	Debtors	8,70,000
Creditors	4,00,000	Goodwill	2,50,000
Sales	41,50,000	Cash and Bank	4,06,500
General Reserves	2,50,000	Calls in arrear	75,000
Bad debts provision on 1-4- 2011	35,000	Interim dividend paid	3,92,500
		Purchases	18,50,000
		Preliminary expenses	50,000
		Wages	9,79,800
		General expenses	68,350
		Salaries	2,02,250
		Bad Debts	21,100
		Debenture interest paid	1,80,000
Total	1,24,67,500		1,24,67,500

Additional Information:
(1) Depreciate Plant by 15%.
(2) Write off Rs. 5,000 from preliminary expenses.
(3) Provide for income tax @ 50%. (4) Stock on 31-3-2011 Rs. 9,50,000
Prepare Final accounts of the company for the year ending 31-3-2012.

10. A Ltd. was registered with an authorized capital of Rs. 6,00,000 in equity shares at Rs. 10 each. The following is its Trial balance on 31st March,2009.

Particulars	Debit	Credit
Goodwill	25,000	-
Cash	750	-
Bank	39,900	-
Purchase	1,85,000	-
Preliminary Expenses	5,000	-
Share Capital	-	4,00,000
12% Debentures	-	3,00,000
Profit and loss account	-	26,250
Calls in arrears	7,500	-
Premises	3,00,000	-
Plant and Machinery	3,30,000	-
Interim Dividend	39,250	-
Sales	-	4,15,000
Stock	75,000	-
Furniture	7,200	-
Sundry Debtors	87,000	-
Wages	84,865	-
General expenses	6,835	-
Freight and Carriage	13,115	-
Salaries	14,500	-
Director's fees	5,725	-
Bad debts	2,110	-
Debenture interest paid	18,000	-
Bills payable	-	37,000
Sundry Creditors	-	40,000

General Reserve	-	25,000
Provisional for Bad debts	-	3,500
Total	12,46,750	12,46,750

Prepare profit and loss a/c, profit and loss appropriation a/c and balance sheet in proper form after making the following adjustments:
(1) Depreciate plant and machinery by 15%.
(2) Write off Rs. 500 from preliminary expenses.
(3) Provide for 6 months interest on debentures.
(4) Leave bad and doubtful debts provision at 5% on sundry debtors.
(5) Provide income tax at 50%
(6) Stock on 31.03.2010 was Rs. 95,000.

Reference no: EM131217933

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