1. Sunrise company ltd. is a company with an authorized capital of Rs. 5,00,000/- divided into 5,000 equity shares of Rs. 100/- each, 2,500 shares were called and fully paid, gives you the following ledger balance as on 31/03/2013

Particulars Amount (Rs.)Stock (1/04/2012)SalesPurchasesWagesDiscount allowedDiscount receivedInsurance paid (up to 30/06/2013)SalariesRentGeneral expensesP&L A/c (Cr.)Printing and stationeryAdvertisementBonusDebtorsCreditorsPlant & machineryFurnitureCash in handReservesLoan from M.DBad debtsCalls in arrears

50,0004,25,0003,00,00070,0004,2003,1506,720

18,5006,0008,9506,2202,4003,800

10,50038,70035,20080,50017,100

1,34,70025,00015,7003,2005,000

You are required to prepare Income statement and Balance sheet for the year ended 31/03/2013. The following further information is also given for adjustments:

a. Closing stock as on 31/03/2013 Rs. 91,500/-.b. Provide 15% depreciation on plant and 10% on furniture respectively.c. Outstanding liabilities were wages Rs. 5,200/-, salary Rs. 1200/- and Rent Rs. 600/-.d. Dividend @ 5% on paid-up capital is to be provided.

2. The following is the trail balance of Deebee Ltd. as on 31/03/2013. The company has 20,000 shares of Rs. 100/- each as Registered capital.

Particulars Debit (Rs.) Credit (Rs.)Share capital (3000 shares of Rs. 100/- each)Calls in arrearsReserve fundBuildingsFixed depositsWagesMachineryFurniturePurchases and salesSalaryDebtors & creditors

--16,000

--1,80,000

--30,00089,00080,000

2,10,00060,000

2,20,000

3,00,000--

2,50,000--

1,00,000------

5,25,000--

1,50,000

B/R & B/PDirectors feesReturnsFreightManufacturing expensesOpening stockInterim dividendCorporate dividend tax on interim dividendAudit feesP&L A/CToolsPreliminary expensesDebenturesInterest on debenturesInvestmentsGoodwillInsurance & taxesPrinting & stationeryCash and bank balance

61,00020,00015,00010,0005,000

65,00021,3683,466

15,000--

38,00060,000

--14,000

2,50,00052,00020,00015,00012,000

15,61,834

90,000--

20,000------------

26,834----

1,00,000------------

15,61,834Adjustments:a. Directors proposed a total dividend of 25%.b. Write off 25% of preliminary expenses and 10% of goodwill.c. Depreciate building by 2% and furniture by 5%.d. Transfer Rs. 60,000/- to Reserve fund.e. Insurance prepaid Rs. 1,500/-f. Closing stock Rs. 80,000/-

Prepare Statement of Profit and loss account and Balance sheet.

3. The following is the trail balance of Bharath company Ltd. as on 31/03/2013. Particulars Debit (Rs.) Credit (Rs.)Paid-up capitalReserve fundProvident FundGoodwillMachineryLivestockBuildings8% Mortgage loans(Debentures)DebtorsCreditorsOpening StockB/R & B/PAdvance payment of Income TaxCash at bankPurchase of Raw materialsSalesReturns

------

15,00025,0005,000

37,000--

45,000--

46,0004,0004,000

11,00088,000

--2,400

1,00,00017,0003,000

--------

30,000--

16,000--

5,490------

1,83,7001,000

DiscountInvestmentsManufacturing WagesCarriage inwardsFactory expensesOffice SalaryOffice FurniturePreliminary expensesBad debtsProvident fund contributionDirectors feesInterest on debenturesDividend on investmentP&L A/C (1/04/2012)

2,0008,000

32,0001,000

14,0006,5005,0005,0001,500500

1,2001,200

----

3,60,300

1,000----------------------

4802,630

3,60,300You are required to prepare Income statement and Balance sheet for the year ended 31/03/2013. The following further information is also given for adjustments:

a. Closing stock as on 31/03/2013 Rs. 38,380/-.b. Write off 50% of preliminary expenses.c. Interest on Mortgage debenture is paid 6 months up to 30th September 2012.d. Provide depreciation machinery @ 10%, building @ 5% and furniture @ 6%.e. Transfer to reserve fund Rs. 2,000/-.

4. The following is the Trail balance of Reliance Co. Ltd., as on 31/03/2013:Particulars Debit (Rs.) Credit (Rs.)Share capitalReserve fundFurnitureBuildingsWagesSalariesDebtorsB/RInterim dividendAudit feesDirectors feesLight and waterPrinting & stationeryPurchasesSalesLoos toolsP&L Appropriation A/CCash at bankForfeited share capital A/cCalls in advanceGeneral expensesGoodwillOpening stock

----

40,00080,00050,00020,000

1,60,00060,00030,00010,0005,000

10,00012,000

2,40,000--

40,000--

50,00010,00020,00010,00050,00060,000

3,00,0001,50,000

------------------------

3,80,000--

20,000------------

InvestmentMachineryCreditorsReturnsB/PCash in handSecurities premium

50,00040,000

--20,000

--38,000

--11,00,000

----

1,80,0010,00020,000

--30,000

11,00,000

Adjustments:a. Closing stock as on 31/03/2013 Rs. 90,000/-.b. Provide depreciation machinery @ 10% and building @ 5%.c. Provide RDD at 5% on debtors.d. Transfer to reserve fund Rs. 25,000/-.e. Director’s recommended dividend of 10% for the year.f. Make provision for taxation Rs. 10,000/-.

Prepare final accounts of the company as per company’s act 1956.

5. Camy Ltd. has an authorized capital of 10,000 equity shares of Rs. 10/- each and 300, 5% Preference shares of Rs. 100/- each.

Trail balance as at 31/03/2014Particulars Debit (Rs.) Credit (Rs.)Equity Share capital5% preference Share capitalPurchases & SalesStock as on 1/04/2012Preference dividend up to 30/09/2012CDT paid on Preference Dividend paidProvision for bad debtsInterest received (TDS Rs. 300/-)WagesMotor vehicle expensesMotor vehicle (cost Rs. 18,000/-)Debtors & CreditorsRates and insuranceLand (cost)P&L A/C (1/04/2012)Directors feesBad debtsInvestmentsSalariesBalance at bank

----

1,10,67029,145

50081----

16,3285,8959,240

28,3701,217

88,000--

3,000770

5,8007,8908,094

3,15,000

1,00,00020,000

1,60,800------

6001,000

------

25,650----

6,950----------

3,15,000Other particulars:

1. Stock on 31/03/2014 Rs. 32,630/-.2. Provision for Bad debts to be increased to Rs. 750/-.3. A dividend of 10% on equity capital is proposed.4. Depreciate vehicles at 20% of cost price.

5. Rs. 3,000/- to be transferred to General reserve.6. Provide for balance of preference dividend.7. Provide for managerial commission at 5% on profit remaining after charging such commission.

Prepare Income statement and Balance sheet.

6. Following is the trail balance of Shakti Company Ltd., on 31/03/2013:Debit Balance Amount (Rs.) Credit Balance Amount (Rs.)Stock (1/04/2012)PurchasesWagesDiscountSalariesRentSundry ExpensesDividend paid (including CDT)Interim dividend (including CDT)DebtorsMachineryCashBankLoan to an EmployeeBad debts

75,0002,45,00050,0007,0007,5004,950

17,0505,0004,000

37,50029,00010,2006,0003,2501,580

5,03,030

SalesP&L A/c (31/03/2012)Share capital in share of Rs. 10/- eachSundry creditorsReserve fundDiscount

3,50,00015,030

1,00,00017,50015,5005,000

5,03,030Adjustments:

1. Stock on 31/03/2013 Rs. 82,000/-.2. Depreciate machinery at 10%.3. 6 months insurance was unexpired at Rs. 750/- PA.4. Rent of Rs. 950/- was due.5. Provide Reserve for doubtful debts at 5%.6. Provide Reserve for discount on creditors at 5%.7. Make provision for income tax to the extent of Rs. 15,000/-.8. Proposed dividend at 10%.9. The managing director is entitled at 10% commission on net profits before charging such commission.

Prepare final accounts from the above particulars.

7. Following is the Trail Balance of Chaitra Ltd., as at 31/03/2013Trail balance as at 31/03/2013

Particulars Debit (Rs.) Credit (Rs.)Equity Share capital12% preference Share capitalReserve fundBuildings10% DebenturesPlant & machineryPurchases & SalesSalaryDebtors & CreditorsBills

------

5,00,000--

2,00,0002,50,00060,000

2,30,00080,000

3,00,0002,00,0001,50,000

--2,00,000

--6,00,000

--1,75,00090,000

Directors feesBad debtsReturnsWagesOpening StockP&L A/C (1/04/2012)Loose toolsGoodwillDiscount on issue of sharesCash and bank balances12% Investments (1/04/2012)Interest on investments

20,0005,000

15,00015,00045,000

--60,00080,00020,00033,000

2,00,000

18,13,000

----

20,000----

60,000----------

18,00018,13,000

Other particulars:a. Closing Stock is valued at Rs. 1,40,000/-.b. Outstanding wages Rs. 2,500/-.c. Write off 10% of discount on issue of shares.d. Debenture interest is outstanding for the whole year.e. Write off Rs. 5,000/- further bad debts and create Reserve for doubtful debts at 5%.f. Building and plant and machinery to be depreciated by 5% and 10% respectively.g. Transfer Rs. 25,000/- to reserve.h. The directors propose 15% dividend to equity shareholders.

You are required to prepare final accounts.

8. Eshwar Ltd., earned a net profit of Rs. 4,00,000/- after considering the following items:Particulars Amount (Rs.)

DepreciationPreliminary ExpensesProvision for taxation

MD’s remuneration paidDirectors fees

Bonus paidProfit on sale of fixed asset

(Original cost Rs. 40,000/- WDV Rs. 22,000/-)

80,00040,000

2,20,00060,00020,00030,00030,000

9. A manager is entitled to a commission at a percentage of net profits (such commission to be charged in arriving at the net profit)The commission is to be allowed on the following rates:First Rs. 10,000/- of the net profit NilNext Rs. 20,000/- of the net profit 10%Next Rs. 30,000/- of the net profit 15%Next Rs. 60,000/- of the net profit 20%Balance of net profits 30%

The net profits before charging the manager’s commission is Rs. 1,45,000/-. Compute the amount of manager’s commission.

10. H.P Ltd., employs a managing director who is entitled to a salary of Rs. 5,000/- PM and, in addition to a commission of 1% of the net profits before charging such commission. The following P&L A/c is presented by H.P Ltd., for the year ending 31/03/2008:

Particulars Amount (Rs.) Particulars Amount (Rs.)To staff salaries & bonusTo general expensesTo repairs to buildingTo director’s feesTo R&D expenses (cost of an apparatusTo ex-gratia payment to an employeeTo depreciationTo bad debtTo commission for breach of contractTo donations to Ramakrishna missionTo managing director’s salaryTo interest on debenturesTo debenture trustee remunerationTo income taxTo net profit c/d

3,00,0001,50,00030,00010,00025,000

5,0001,50,00030,00020,00030,00060,00020,0005,000

3,32,5003,32,500

15,00,000

By gross profit b/dBy profit on sale of plant (cost price Rs. 2,50,000/-, WDV Rs. 1,80,000/-)By subsidy from government

10,00,0001,00,000

4,00,000

15,00,000You are required to calculate the commission payable to managing director. You may assume the depreciation appearing in the P&L A/c has been calculated in accordance with section 350.

11. Net profits before tax and managerial remuneration Rs. 40,00,000/-Depreciation as per books of accounts Rs. 5,00,000/-Depreciation as per section 350 of companies act Rs. 6,00,000/-The manager is entitled to a commission of 4% on net profit. Calculate the commission payable to the manager if it is to be calculated on:

a. Profits before charging such commission, andb. Profits after charging such commission.

12. The following is the Trial Balance of Omega Limited as on 31.3.2012:(Figures in Rs. ‘000’)

Debit Balance Amount(Rs.) Credit Balance Amount(Rs.)Land at costPlant & Machinery at costTrade ReceivablesInventories (31.3.12)BankAdjusted PurchasesFactory ExpensesAdministration ExpensesSelling ExpensesDebenture InterestInterim Dividend Paid

220770968620

3206030302018

1670

Equity capital (Shares of Rs. 10/- each)10% DebenturesGeneral ReserveProfit & Loss A/cSecurities PremiumSalesTrade PayablesProvision for DepreciationSuspense Account

300

2001307240

70052

1724

1670Additional Information:a) The authorized share capital of the company is 40,000 shares of Rs. 10 each.b) The company on the advice of independent valuer wish to revalue the land at Rs. 3,60,000.c) Proposed final dividend @ 10%.d) Suspense account of Rs. 4,000 represents cash received for the sale of some of the machinery on 1.4.11.

The cost of the machinery was Rs. 10,000 and the accumulated depreciation thereon being Rs. 8,000.e) Depreciation is to be provided on plant and machinery at 10% on cost.You are required to prepare Omega Limited’s Balance Sheet as on 31.3.2012 and Statement of Profit and Loss for the year ended 31.3.2012 as per Revised Schedule. Ignore previous years’ figures & taxation.

13. You are required to prepare financial statements from the following trial balance of Haria Chemicals Ltd. for the year ended 31st March, 2012.

Haria Chemicals Ltd.Trial Balance as at 31st March, 2012

Particulars Amount(Rs.) Particulars Amount(Rs.)StockFurnitureDiscountLoan to DirectorsAdvertisementBad debtsCommissionPurchasesPlant and MachineryRentalsCurrent account

6,80,0002,00,00040,00080,00020,00035,000

1,20,00023,19,0008,60,00025,00045,000

Equity SharesCapital (Shares of Rs. 10 each) 11% DebenturesBank loansBills payableCreditorsSalesRent receivedTransfer feesProfit & Loss accountDepreciation provision :

25,00,0005,00,0006,45,0001,25,0001,56,000

42,68,00046,00010,000

1,39,000

CashInterest on bank loansPreliminary expensesFixturesWagesConsumablesFreehold landTools & EquipmentsGoodwillDebtorsBills receivableDealer aidsTransit insuranceTrade expensesDistribution freightDebenture interest

8,0001,16,00010,000

3,00,0009,00,00084,000

15,46,0002,45,0002,65,0002,87,0001,53,00021,00030,00072,00054,00020,000

85,35,000

Machinery 1,46,000

85,35,000Additional Information: Closing Stock on 31.03.2012 Rs. 8,23,000/-.

Particulars Debit (Rs.) Credit (Rs.)Paid-up capitalReserve fundProvident FundGoodwillMachineryLivestockBuildings8% Mortgage loans(Debentures)DebtorsCreditorsOpening StockB/R & B/PAdvance payment of Income TaxCash at bankPurchase of Raw materialsSalesReturnsDiscountInvestmentsManufacturing WagesCarriage inwardsFactory expensesOffice SalaryOffice FurniturePreliminary expensesBad debtsProvident fund contribution

------

15,00025,0005,000

37,000--

45,000--

46,0004,0004,000

11,00088,000

--2,4002,0008,000

32,0001,000

14,0006,5005,0005,0001,500500

1,00,00017,0003,000

--------

30,000--

16,000--

5,490------

1,83,7001,0001,000

------------------

Directors feesInterest on debenturesDividend on investmentP&L A/C (1/04/2012)

1,2001,200

----

3,60,300

----

4802,630

3,60,300