eel Name: Roll No. Section: Indian Institute of Management, Kozhikode Quir-3 ‘Max Marks: 25 Date: 28” July, 2016 Course: Management Accounting-1 (Section E & F) NB: 2, Answer all the questions in the space provided for each question. No negative marking b. Answers written with Pencil shall not be considered for evaluation. Question: The account balance in the ledger of TorRaj Pvt Limited on 31 March, 2016 before adjustments were as follows: Debit balances (Rs) Credit balances (Rs) Cash and bank 75,500 Accounts payable 40,600 Accounts receivables 36,800 Long Term Bank Loan 50,000 Inventory 41,25,000 Equity Capital 40,000 Prepaid insurance 1,300 Retained Earnings 37,400 Selling & Distribution Expenses 15,600 Sales Revenue 2,00,000, Salaries and wages 50,800 Equipment (net) 63,000 3,68,000 000 The data for the adjustments are: ‘The ending inventory is 19,300. The current year depreciation on equipment is Rs 5,000, ‘The insurance premium expired in current is Rs 1,200. The outstanding interest on Long Term Bank Loan is Rs 5,000. Provision for income tax is Rs 2,000. You are required to: a. Set up T accounts (Ledger) with the balances given above. 'b, Post Adjustment entries in T accounts (Ledger), adding other T accounts as necessary. Prepare an income statement for the fiscal year ending 31" March, 2016 and balance sheet as on 31" March, 2016. Page 1 of SName: Roll No. : Section: Ledger Book: Particulars column is not compulsory Cathe, Banle Ada bel 75,500 Bel. 26,404 Lave eg Prepuid lwracance Br). 125,90 @) 105,700 Rod 4 BO {200 Gelling & Dist Ene: Rolavies urged Bal - 15,600 tel. 50,600) Equiipme b- Aecesuns Reyeble G4 63900 5000 Bul» 49,600 Leng Tea Urn Equity Copibd Bal - 50,57 Bol p00) Page 2 of 5© 5000 12.00} Tatorot” Ene We Os Tlroh- oe fa) seo Tncomo Tax Bo P> Peovigion ft Tax A 2.000 As) 2000 Sales Rey: Afe Bal. Page 3 of S