View the step-by-step solution to:

Question

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 

Investments 1,44,475 

Cash 36,120 

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%

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes