2. You are required to prepare a Profit & Loss
Account for the year ending 31st December, 2007 and the
Balance Sheet on that date. The Trial Balance of XYZ Ltd.
for the year ended 31st December 2007 is as follows:-
Trial Balance of XYZ Ltd. as on 31st Dec. 2007
Debit Balances
Rs.
Credit Balances
Rs.
Materials used
3,50,000
Sales(including 2% Sales tax)
9,18,000
Cost of Labour
1,50,000
Sale of Scrap
100
Stock, finished and work in process on 31st December, 2006
50,000
Rent received
2,000
Wages : Factory Staff
15,000
Discounts
2,750
Directors Remuneration
50,000
Recovered against fire claim re : Stock
5,000
Salaries : Clerical Staff
75,000
Capital : Equity
25,000
Insurances : Workmen’s Compensation
1,500
Preference- 9%
8,000
General, fire etc.
2,000
Creditors
1,56,000
Directors’ Life Insurance
1,500
Provision for Taxation
1,05,000
Maintenance : Buildings
1,000
Profit & Loss Account
13,750
Plant and Machinery
12,500
Rent and Rates of premises and hire of plant
20,000
Heat, Light and Power
15,000
Experimental and Laboratory Expenses
10,000
Canteen Expenses
5,000
Staff Welfare expenses
2,500
Motor Expenses
12,500
Professional Charges
2,800
Postage and Telephone
3,500
Books, Printing and Stationery
11,000
Sundry expenses
10,000
Carriage and Packing on Sales
3,300
Discounts
5,000
Debtors
1,78,000
Freehold Property
50,000
Plant and Machinery
12,500
Fixtures and Fittings – Offices
3,500
Office machinery and Equipment
3,000
Motor Car and Van
6,500
Stock of materials on 31st Dec. 2007
1,20,000
Bank
38,000
Sales Tax Paid
15,000
12,35,600
12,35,600
Depreciation is to be provided at the following rates:
Plant and Machinery
10%
Fixture and
Fittings 05%
Office Machinery, etc.
10%
Motor Vans and Cars
25%
The stock of finished goods and work in progress as on 31st
December, 2007 was Rs. 35,000. Provide for preference
dividend and ordinary dividend at 10%. The total taxation
liability is estimated at Rs.1,50,000 of which Rs. 75,000
relates to the current year.
Debtors include Rs. 10,000 deposited as security against
government contracts.
The Works Manager is paid partly by salary and partly by a
commission; he is entitled to a commission of 5% on the
amount by which the surplus in the factory cost exceeds 20%
of the sales for the period. Charge the commission if any
in the Profit and Loss Account.
3. You are required to show the effect of each of
the following changes on profit and Break-Even-Volume
from the information given below:
Sales 50,000
units Rs. 5.00 per unit
Variable
cost Rs. 3.00 per
unit
Fixed
cost Rs. 70,000
Changes:
(i) Price changes by 20%.
(ii) Volume decreases to 40,000 units.
(iii) Variable cost increases to Rs 3.50 per
unit.
(iv) Fixed cost decreases by 10%.
Country-Western songs emphasize three basic themes: love,
prison and trucks. A survey or the local Country-Western
radio station produced the following data:
12 songs about a truck driver who is in love while in prison
2 about people in prison who are not in love and do not
drive trucks
8 about people who are out of prison, are not in love, and
do not drive a truck
13 about a prisoner in love
28 about a person in love
18 about a truck driver in love
16 about truck drivers who are not in prison
3 about a truck driver in prison who is not in love
Find the number of songs about:
a) How many songs were surveyed?
b) truck drivers?
c) prisoners?
d) truck drivers in prison?
e) people not in prison?
f) people not in love?
.,can someone tell me how to compute the subscribed capital
share?
44
how to treat accounts receivables and accounts payables in
accounting. Which entries are done .
20
what is the entry for goods sent from one factory to
another under inter branch transfer sale of the same compny
and what should be the valuation for this purpose?
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