The following balances appeared in the books of Parasuram Flour Mills

The following balances appeared in the books of Parasuram Flour Mills Ltd., as on December 31, 2005 : DetailsRsDetailsRsStock of wheat9,500Furniture5,100Stock of flour16,000Vehicles5,100Wheat Purchases4,05,000Stores and spare parts18,300Manufacturing Expenses90,000Advances24,500Flour Sales5,55,000Book Debts51,700Salaries and Wages13,000Investments4,000Establishment4,700Share Capital72,000Interest (Cr.)500Pension Fund23,000Rent Received800Dividend Equalisation fund10,000Profit and Loss Account (Cr.)15,000Taxation Provision8,500Director’s Fees1,200Unclaimed Dividends900Dividend for 20049,000Deposits (Cr.)1,600Land12,000Trade Creditors1,24,000Buildings50,500Cash in Hand1,200Plants and Machinery50,500Cash at Bank40,000 Prepare the company’s trading and profit and loss account for the year and balance sheet as on December 31, 2005 after taking the following adjustments into account:(a) Stock on December 31, 2005 were: Wheat at cost, Rs 14,900: Flour at market price, Rs 21,700; (b) Outstanding expenses: Manufacturing expenses, Rs 23,500; and salaries and wages, Rs 1,200; (c) Provide depreciation : Building at 2% ; Plant and machinery at 10%: Furniture at 10% ; and Vehicle 20%. (d) Interest accrued on Government Securities, Rs100: (e) A tax provision of Rs 8,000 is considered necessary. (f) The directors propose a dividend of 20%. (g) The authorised capital consists of 12,000 equity shares of Rs 10 each of which 7,200 shares were issued and fully paid up.

Answer»

The following balances appeared in the books of Parasuram Flour Mills Ltd., as on December 31, 2005 :

Details	Rs	Details	Rs
Stock of wheat	9,500	Furniture	5,100
Stock of flour	16,000	Vehicles	5,100
Wheat Purchases	4,05,000	Stores and spare parts	18,300
Manufacturing Expenses	90,000	Advances	24,500
Flour Sales	5,55,000	Book Debts	51,700
Salaries and Wages	13,000	Investments	4,000
Establishment	4,700	Share Capital	72,000
Interest (Cr.)	500	Pension Fund	23,000
Rent Received	800	Dividend Equalisation fund	10,000
Profit and Loss Account (Cr.)	15,000	Taxation Provision	8,500
Director’s Fees	1,200	Unclaimed Dividends	900
Dividend for 2004	9,000	Deposits (Cr.)	1,600
Land	12,000	Trade Creditors	1,24,000
Buildings	50,500	Cash in Hand	1,200
Plants and Machinery	50,500	Cash at Bank	40,000

Prepare the company’s trading and profit and loss account for the year and balance sheet as on December 31, 2005 after taking the following adjustments into account:

(a) Stock on December 31, 2005 were: Wheat at cost, Rs 14,900: Flour at market price, Rs 21,700; (b) Outstanding expenses: Manufacturing expenses, Rs 23,500; and salaries and wages, Rs 1,200; (c) Provide depreciation : Building at 2% ; Plant and machinery at 10%: Furniture at 10% ; and Vehicle 20%. (d) Interest accrued on Government Securities, Rs100: (e) A tax provision of Rs 8,000 is considered necessary. (f) The directors propose a dividend of 20%. (g) The authorised capital consists of 12,000 equity shares of Rs 10 each of which 7,200 shares were issued and fully paid up.

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment