Q.3 The Following Balances appeared in the books of X Ltd. As on 31st December 2006.
Debit Balances Rs. Credit Balances Rs.
Building 50,000 Subscribed & Paid up Capital 3,00,000
Purchases 50,451 General Reserve 1,25,000
Manufacturing Exp 1,79,500 Unclaimed Dividends 3,663
Establishment Exp 1,407 Trade Creditors 18,029
General Charges 15,539 Sales 4,91,974
Machinery 10,000 Depreciation Reserve 35,500
Motor Vehicles 7,500 Interest on Investments 4,272
Furniture 250 Profit & Loss A/c (01-01-06) 8,423
Opening Stock 86,029 Staff Provident Fund 18,750
Book Debts 11,690
Director's Fees 900
Interim Dividend 7,500
TOTAL 1,005,611 TOTAL 1,005,611
From these balances and the following information, preparethe company' Balance Sheet as on 31st December, 2006 and its profit and Loss Account for the year on that date:
a) The stock on 31st December, 2006 was valued at Rs. 74,340.
b) Provide Rs. 5,000 for depreciation on fixed assets, Rs. 3,250 for Managing Director's commission and Rs. 750 for the company's contribution to their staff provident Fund.
c) Interest accrued on investment amounted to Rs. 1,375.
d) A provision of Rs. 4,000 for taxes in respect of profit 2006 is considered necessary.
e) The directors propose a final dividend @ 5%
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