The following balances have been extracted from the books of Satya Limited as on 31st March, 2008.

Particulars Freehold land Buildings Furniture Debtors Stock (on 31st March, 2008) Cash at bank Cash in hand Cost of goods sold Salaries and wages Rs. 2,00,000 1,75,000 25,000 1,50,000 60,000 5,000 1,000 3,10,000 20,000 Particulars Rs. Income from investments-Net 4,000 Bills Payable 2,000 Creditors 30,000 Provision for depreciation On 1 April 07: Building 15,000 Furniture 6,000 11% Debenture (secured on building) 1,06,000 Equity share capital 3,66,500 9% preference shares f Rs.100 1,00,000 each Share premium 10,000 General Reserve 52,500 Sales 4,50,000 Profit & Loss A/c 1 April 07 3,500

Miscellaneous expenses 8,000 Investments in shares 1,80,000 Interest 3,000 Bad debts 1,000 Repairs and maintenance 1,500 Advance payment of income-tax 6,000 TOTAL 11,45,500 TOTAL 11,45,500 The following particulars may be taken into account: i. Transfer 10% of profit to General Reserve. ii. All the equity shares are fully paid up and the face value of each equity share is Rs.10. iii. Provision for taxation is to be made at 34%. iv. Market value of investment was Rs.1, 90,000 on 31st March 2008. v. Depreciation is to be charged on written down value of Building @ 2% and on furniture @ 10% p.a. vi. Income-tax deducted from the income from investments amounted to Rs.500. vii. Dividend proposed on equity shares and preference shares are 10% and 9% respectively. Prepare an Income Statement of Satya Ltd. for the year ended 31 March, 2008 and the Balance-Sheet as on that date. Ignore previous years figures.