Question :

Mehnaj Limited 2018 trial balance given below:

Accounts name Debit Credit

Taka taka
isued and called up capital 80,000 share 800000

purchases (including 15% VAT) 460000

Sales (including 15% VAT) 920000

Share premium 80000

investment 520000

Building 680000

General reserve 90000

8% Debenture (1-1-2018) 110000

wage(10 months) 160000

Interim Dividend (1-7-18) 65000

Accounts Receivable 110000

Accounts Payable 70000

Goodwill 120000

VAT current account 82000

Stock (1-1-2018) 75000

Unclaimed Dividend 12000

income tax 25000

Retained earnings (1-1-2018) 215000

Total 2297000 2297000

Acquisition:

(1) The closing stock is valued at tk.1,90,000. Of which 10000 goods destroyed by fire were included. The
insurance company agreed to pay compensation of Rs.6,000,

(2) shares premium must be adjusted with goodwill;

(3) General reserve to be raised to tk.1,30,000;

(4) Income tax allowance 15,000.

(5) dividend to be declare at tk.1.00 per share.

A. Create a VAT current account.

b. Calculate the total profit/total loss for the current year.

c.Calculate the share holder equity and liabilities by assuming Retained Earnings as 3,30,200 taka on
December 31, 2018.