the authorized capital of durai ltd is rs 24 00 000 consisting of 12 000 equity shar 619428
The authorized capital of Durai Ltd. is Rs.24,00,000 consisting of 12,000 equity shares of Rs.100 each and 12,000 preferences shares of Rs.100 each. The balances appearing in the books on 31 December 2010 were given as follows:
|
Debit |
Credit |
||
|
Investment in Shares at Cost |
2,00,000 |
Sundry Creditors |
3,51,400 |
|
Purchase |
19,62,000 |
6% Preference Share Capital |
8,00,000 |
|
Packing Charges |
72,000 |
Equity Share Capital |
8,00,000 |
|
Delivery Expenses |
1,41,600 |
5% Mortgage Debentures Secured on |
|
|
Stock (1 January 2010) |
5,80,800 |
Freehold Properties |
6,00,000 |
|
Salaries &Wages |
2,08,000 |
Dividend Interest |
17,000 |
|
Rents & Rates |
70,000 |
Profit & Loss A/c |
1,14,000 |
|
Freight & Carriage Outward |
32,800 |
Sales (Net) |
26,81,400 |
|
Final Dividend for 2009 |
48,000 |
Bank 0/D by Hypothecation of Stocks |
|
|
Preference Dividend for 6 months to |
and Receivables |
6,00,000 |
|
|
30 June 2010 |
24,000 |
||
|
Discount on Issue of Debenture |
8,000 |
||
|
Preliminary Expenses |
4,000 |
||
|
Bills Receivable |
1,66,000 |
||
|
Interest on Bank 0/D |
31,200 |
||
|
Debenture Interest HaLF. Year |
|||
|
Up To 30 June 2010 |
15,000 |
||
|
Sundry Debtors |
2,00,400 |
||
|
Freehold Property at Cost |
14,00,000 |
||
|
Furniture at Cost Less |
|||
|
Depreciation of Rs. 60,000 } |
1,40,000 |
||
|
Taxation Advance of 2010 |
60,000 |
||
|
Technical Know-How at Cost |
6,00,000 |
||
|
59,63,800 |
59,63,800 |
You are required to prepare profit and loss account for the year ended 31 December 2010 and balance sheet as on that date after taking into account the following:
- Closing stock was valued at Rs.5,70,000
- Purchases included Rs.20,000 worth of goods and articles for distribution among valued customers
- Salaries and wages include Rs.8,000 being wages incurred for installation of electrical fittings in the factory. Electrical fittings have been recorded under “Furniture”
- Bills receivable include Rs.6,000 which has been considered to be irrecoverable
- Bills of Rs.8,000 maturing after December 2010 were discounted
- Charge depreciation @20% on furniture
- Write off 50% of discount on debenture
- Dividend as 5% proposed on equity share capital
- Provision for taxation Rs.32,000
- Technical know-how is to be written off over a period of 15 years
- Salaries and wages include Rs.40,000 being the director’s remuneration
- Previous year’s figures not to be mentioned.