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Problem 6 7

The document provides a trial balance for Vinayaka as of March 31, 2012 listing assets, liabilities, equity, income and expenses. It includes adjustments for closing inventory, prepaid taxes and depreciation expense. The summary is asking to prepare income statements for manufacturing, trading and profit & loss as well as a balance sheet as of March 31, 2018 using the information provided.

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391 views1 page

Problem 6 7

The document provides a trial balance for Vinayaka as of March 31, 2012 listing assets, liabilities, equity, income and expenses. It includes adjustments for closing inventory, prepaid taxes and depreciation expense. The summary is asking to prepare income statements for manufacturing, trading and profit & loss as well as a balance sheet as of March 31, 2018 using the information provided.

Uploaded by

tushar1007singh
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Illustration 6: Vinayaka’s Trial Balance as on 31st March 2012 is as follows:

Particulars Dr. Rs Cr. Rs. Particulars Dr. Rs Cr. Rs.


Opening Stock Printing and 5,200
Raw Materials 2,50,000 Stationery
Work-in Progress 80,000 Bank Charges 2,500
Finished Goods 2,20,000 Traveling Expenses 10,000
Purchases 2,15,000 Discount 3,300
Sales Return 11,000 Buildings 1,50,000
Capital 8,50,000 Advertisement 5,500
Sundry Creditors 52,000 Plant & Machinery 3,60,000
Wages 83,000 Sales 7,80,000
Sundry Debtors 82,500 Furniture 40,000
Factory Taxes 4,000 Trade Mark 30,000
Discount 2,500 Miscellaneous
Motive Power 9,000 Expenses 5,500
Bills Payable 34,000 Factory Insurance 5,000
Salary to Office Staff 11,000 Bill Receivable 16,000
Office Rent 10,500 Carriage Inward 2,500
Corporation Bank 98,000 Cash on hand 9,000
Adjustments:
(1) Closing Stock: Rs. Raw Materials 85,000, Work-in-Progress 30,000, Finished Goods 2,05,000
(2) Factory taxes prepaid Rs.2,000
(3) Depreciation: Furniture 10% Plant & Machinery 15% Trade Mark 20% Building 5%
Prepare Manufacturing, Trading and Profit & Loss Account for the financial year 2017-18 and Balance Sheet
as on 31-3-2018. (IDE, Mar. 2000, adapted)

Illustration 7:
Amar Chemicals has the following Ledger Balance as on 31st March 2018.
Particulars Dr. Rs. Cr. Rs. Particulars Dr. Rs. Cr. Rs.
Goodwill 50 50,000 Net Sales 11,00,000
Factory Shed 20,000 Creditors 1,50,000
Machinery 1,30,000 Debtors 1,35,000
Furniture 8,000 Miscellaneous Income 4,000
Investments 10,000 Bad Debts Reserve 5,000
Capital 1,95,000 Purchase of Materials 8,60,000
Bank Loan 3,00,000 Rent and Taxes 16,500
Salaries and Wages Repairs and Renewals 2,500
- Factory 1,50,000 Freight on Materials 50,000
- Office 65,000 Factory Power 15,000
Stock on 1-4-2018 Insurance 3,900
- Materials 1,30,000 General Expenses 18,100
Work-in Progress 7,500
Finished Goods 82500
The following additional information is available:
(1)Closing Stock: Materials Rs.2, 10,000; Work-in-Progress Rs.12,500 and Finished Goods Rs.2,07,500.
(2) Depreciation to be provided at 2.5% on Factory Shed, 10% on Machinery and 15% on Furniture.
(3) Repairs and rent and taxes are to be apportioned between Factory and Office in the ratio of 3: 2.
(4) Reserve for bad and doubtful debts are to be provided at 4% on debtors.
(5) Insurance Premium covers a period of one month in advance.
You are required to prepare Manufacturing, Trading, and Profit and Loss Account for the year ended 31st March
2018 and Balance Sheet as on that date. (Mumbai, Nov. 1998, adapted)

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