Mahabubabad Miracle Company has provided you with the following trial balance and additional information for

the financial year ended

1
March 31, 2022. You are required to prepare the company's financial statements.

Trial Balance

Particulars Debit Credit

General Reserve 861000
Cash and bank balances 837000
Facsimile (fax) machine 200000
Interest Income from Investments 6700
Trade receivables 828000
Furniture 422000
Loan from Credit Agricole Indosuez (Short-Term) 586000
Purchases of raw materials 1098000
Salary to employees 772000
Computer tablets 586000
Maintenance of air-conditioner 84000
Uninterruptible Power Supply (UPS) 622000
Short-Term Investments 1939700
Debentures 238000

Long-Term Investment in Government Securities 240000

Sales 3380000

Rent for premises 82000

Printing charges 47000

Advance from Clients 404000

Long-term provisions 281000

Equity Share Capital 456000

Advance to Suppliers 90000

Trade Payables 774000

Advertising expenses 16000

Loan from Bank of Punjab (Long-Term) 1102000

Employee training expense 74000

Interest expense on loans 26000

Mobile phone 125000

Total Rs… 8088700 8088700

Additional Information

Closing stocks of raw materials at the end of the year is Rs. 297000.

Depreciate Computer tablets at the rate of 10.00 per cent

Depreciate Facsimile (fax) machine at the rate of 20.00 per cent

Depreciate Furniture at the rate of 25.00 per cent

1
EBIT = Rs. 966300. EAT = Rs. 710250. Total Equity = Rs. 2027250. Total Assets = Rs. 5649000
Depreciate Mobile phone at the rate of 10.00 per cent

Depreciate Uninterruptible Power Supply (UPS) at the rate of 25.00 per cent

Create a provision for doubtful debts at the rate of 20.00 per cent of the trade receivables.

The rate of income tax applicable to the company is 25.00 per cent.
SCHEDULE D: PROPERTY PLANT & EQUIPMENT

SR PATICULARS % GROSS DEPRECIATION NET

AMOUNT AMOUNT
1 COMPUTER TABLET 10% 586000 58600 527400

2 FAX MACHINE 20% 200000 40000 160000

3 FURNITURE 25% 422000 105500 316500

4 MOBILE 10% 125000 12500 112500

5 UNINTERRUPITABLE 25% 622000 155500 466500

POWER SUPPLY
TOTAL RS 1955000 372100 1582900
 Note Amount

A Equity and Liabilities

Equity
(a) Share Capital 456000
(b) Reserves and Surplus E 1627050
Total Shareholders’ Funds 2083050

Non-Current Liabilities
(a) Long Term Borrowings F 1340000
(b) Deferred Tax Liabilities
(c) Long Term Provisions 281000
(d) Other Non-Current Liabilities
Total Non-Current Liabilities 1621000

Current Liabilities
(a) Trade Payables 774000
(b) Short Term Borrowings 586000
(c) Short Term Provisions 165000
(d) Other Current Liabilities 404000
Total Current Liabilities 1992900
Total Equity and Liabilities 5696950
B Assets
Non-Current Assets
(a) Property, Plant, and Equipment 1582900
(b) Deferred Tax Assets
(b) Non-Current Investments 240000
(c) Long Term Loans and Advances
(d) Other Non-Current Assets
Total Non-Current Assets 1822900

Current Assets
(a) Inventories 297000
(b) Trade Receivables 828000
(c) Cash and Bank Balances 837000
(d) Short Term Loans and Advances 90000
(e) Current Investments 1939700
(f) Other Current Assets
Total Current Assets 5814600

Total Assets
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31 2022

Note Amt
Income
(a) Sales (Gross) 3380000
(b) Other Income 0
Total Income 3380000

Expenses
(a) Materials Consumed C 801000
(b) Employee Benefits Expense B 846000
(c) Other Expenses A 320200
Total Expenses 1967200

Earnings before Interest, Taxes, Depreciation and

1412800
Amortisation (EBITDA)
D 372100
Less Depreciation and Amortisation
Earnings before Interest, and Taxes (EBIT) 1040700
Add Non-Operating Income + 6700
Less Non-Operating Expenses _ 26000
Earnings before Taxes (EBT) 1021400
Less Provision for Tax 255350
Earnings after Taxes (EAT) 766050
Less Appropriations 0
Transfer General Reserve 766050
 Schedule A: Other Expenses
Maintenance of air conditoner 84000
Rent of premises 82000
Printing charges 47000
Advertising expenses 16000
Provision for doubtful debts 165000

Total operating expenses 320200

Schedule B: Employee Benefits Expense

Employees training expenses 74000
Salary to Employees 772000
Total Rs… 846000

Schedule C: Cost of Materials Consumed

Purchases 1098000
Less: Closing Stock of RM 297000
Material Consumed 801000

Schedule E: Reserve and Surplus

General Reserve 861000
Add: Profit for the year 766050
Total Rs… 1627050

Schedule F: Long Term Borrowings

Debentures 238000
Loan from bank of punjab (Long-Term) 1102000
1340000