VV HT P-2695 Second Year B. Com. (Sem. IV) March / April - 2014 Adv. Accounting & Auditing : Time : 3 Hours} BA: (a) Ta caea g Gated Gaal Greed ue mate ad. Fillup trietly the dotalle of g~ signs on your answar book. fee ofthe Examination. Examination Paper - IV [Total Marks : 70 SeatNo. IE ‘*|_Second Year B. Com. (Sem. IV) Name ofthe Subjed «| Adv. Accounting & Auditing : Paper - IV Ni Students Signature ee cee (2) wat da eer B (3) wael ouyett ais wat yer calla @. Ce) gal wie ward As ou aUEUaL. a Au wallet war all : (a) fA aude s9-3-ror eeu Dell sar arearrd aed aa 3 edad eur ada defn ails Ravdaiad sae cald : 2. Aauge (49, AAU AR ABM)... eee ENE;RAO, sda Ausiaa.... ++ 38,94O eae ... pes eb UBHe sud : Aauerii vias ur se 22,YOoH Mlad ade etd. 2 wad ut, 12,000 8. al. 39-3 ored De wd veUe 83 mad wa wi died 8. 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Loom HEaLHt P-2695] sel sult € SAA M2 ya Bra sar. 3 [Contd...(4) aug Badd aud Gua Adi (eis Bard), xis 2lus Baa, wr Xd sdi 20% Wel O F ome ad Aaid 8: (e) xelladl 20% aie Bua adi. (o) wdeBrad del eH eflirsit We ead d. (¢) SFA Aadesdr ane aver sai 2 SHA Aen aeavii ad duel ¢ SBA G2 yr Baa wma. (3) 3, 20,000-) yea wal idl dull edaaad 8. Ce) tll Suellen uA A2 MBL Bia AZ ow Yai WELL F ua oud wit. aur 2 (a) aie Rin add (a) LB md (a) SBA awed mud. (2). wats Rit A Ug way: aaa Wd Rd at. s1-s-Rovett Dod ig add AA yx B : 43 ug wray wuserded 3. | Masa as eis 3. toout Te wall 4,00,000 Aa 6GRd ae 10,00,000 } tee 40,000 ArMett Hera AR elttsit '8,00,000 ee a. tod €,00,000 |, io %,00,000 3. tod WWI Real 2,00,000 | eGfae '3,00,000 Rélaal ue aud our 20,000 | wis 4,00,000 avied 4,80,000 | 2atee 4,009,000 oid 2g: ass 4,00,000 Rae RR a ahd mabe vat 0,000 asaatd oud 8, sald 4,00,000 '20,00,000 '20,00,000 P-2695] 4 [Contd...A waded, Yate Deed UA SAL UL WA A sai aadl : (4) ait BR. atl acl sul.) 0,00,c00-1 ania au 3 dod As Aa 3,00,000 SE ari aduaddl B a weet Rd dl wdlel dat wad. (2) ell duefleu 2 SRA dau sear afl sud s SEA ar a. weed a ald Sar. A Sl Vea Heat ad st 3 Sar 3. V mawd war ale wal. (3) atid RLA 2. Yo,ooo Des ANAL (e) Rererde oul BRSsw veati a, room Rae Wad se ¢ SAA a yA od war ale wat. (4) aNdort RélaadedA.ro% MRA asaal, W%t RAAr 20% aad muyal. (e) Qadri vo,coont Qa aust aria aeied 8 F yA asl Bari WALL BA UAL ABIEIDA YO% 25H Assi asl asc sai dl. (0) vel dul Presi fll Gad adlaad. MAAS eee €,00,000 ed. afar ws, Baler .. Veed sa Gury wll. (2) awd Buel Rave wel d0,000 aii, (e) dl sullen ode a2 Ma Aa oudoua Mer BF ot © mud aa 8. tar sd: (a) arte Bont DM ALOE. wid, SBA Aadesded wud WA dss vad fe) ait Rud ag RAY (Yee Yeti aa ued) P-2695) 5 [Contd...Sadler O28 cl, 94-3-2orvdt Ded UZ aay AA yx bd 293 ug uray Rai 2am a. | Pras 2643 2,000 SAA de, ets wad ¥O,000 3. too" yal arate 200,000 | dee 40,000 1,000, 20% + syyalea elt tL Reva 22, Gs 3. 100d 1,00,000°} (amnead 3. 2,200,000) 0,000 WPL Bet 20,000 | ell4dl WU RAE 1,00,000 | (wm [ud 3. No,o00) |’ 80,000 Raver oA aus au,oco | as 30,000 10% Ars At yo,o0o | aed £0,000 area 4,000 | -astia — x,000 | — 9¢,000 ss fas 4,000 tel deat la %,30,000 4, 40,000 44,40,000 Su 4h aatsrl AL des ella, F arr was wer whl : (4) Sad aad Bad 3. col wand. (2) Reva der DtsyyaRari gaat aA ddl Bad 3. 20 atl wats. (3 Rawmadesd dud oul cue xd ara. (4) 20% A-§ Qa UR € Ad UY Asari, OU od, % ARM asdl 24 mA Os alae ed 3. roel Brant Sad a2 aA. (x) Qetetd Wate Aeuriel vo% wert s2al. P-2695] (Contd... ae8(e) Reva A va A aly Rss asad oud vd, ¥ A eds 2. (oor Hea 3. Lord As SEA A wd. (9) ari mee WA Mads Masd iM aad da ar Pesdd omeGaad caladl. tail 3. voood As Auer ere d BA Arf wae 2S rofl’ ad aH vel. Sater ue o% wed aida wil. uefa ad awidia ad aA Wg av aR «a. maa 3 (a) al. 3a-s2ovwal Ded MAD BPAsd wig ard qo A ys Bs wg way eal sn 3. | asd UH 3. 8s g. Lod As Fa wad 90,000 Gad aa ysl ows ¥,00,000'| @llei-iait 3,00,000 ee YP dood Be Aa wl 9N,000 overt Yala Deva Az eee ¥0,000 ysl oud 2,00,000 | asiei 40,000 cot RAR 4,NO,000 | eis 41,94,000 ada mA 2g wa oe €,000 | éaieid 41,¢0,000 is ailaggiee 2%,000 | wats wal 34,000 Reset dia 0,000 | ai-deait wad 25€4,000 Asied 220,000 12,00,000 42,00,000 P-2695] 7 [Contd...melad 9 Ra 4 sais AAC de eisai wi wari sal idl : (a) was SERA a2, Ards a. 3 yl aud mA 42s Reva a, dre 3. co atl saad 8, (2) Beal aiel ale erat RRs Mae af AL dre asanl well. oud Dare BR seshiell 2 MIL eel. seated B. oA ay 22 SFA a2 mmari 8. eS RA-aaWdedar did Wd eux Assni Aan} WA Darl Aol acl resell rind: asaell 2 3. yo,coo-l aud Baar wla-asit 3. 04,000-41 HHA ad Aad adisvf. det wla-rsiriel Baa 3. 3,00,000 aisairi aud. (w) std 3. Cuoooni azi. (4) Reseda ariel deel warae 32 20% eH SBA ari, 10% AssHi MA ose 25H Bll -sraie adlsef. (e) age A aiadlas Mesed Hid anal d. uel ed Gurr 3:21 MAB Ws A BaLEIdl AAEaL ALZ Sate B, Mla WT wal awrite ard. (o1) 48 waist BA Béleia awd. 3 © as WPL we AL. 1--ROTON dy, alia HH” ae al, 4-4-R09 0M dled HZ sravti audl el. dled 3. %,00,000 “ssl sraini rtdl el, FAL 3. 2,094,000 Prasdlat HA 3. 2¥,000 Waele Gal HAeBAd’ ysaell di. 1-0-2,0voa Sy Sai BL El, WAi 3. 2,00,00041 U%etL RAI WA UA ass asd acl. P-2695) 8 [Contd... {eeedil. 34-42-2o0%0K Dy YRi adi afd Aue AA cerasait wed AA ym ed: Aue wl Agt-qsatt wid, Gar ol Ror UH 3. | Rad UH 3. amu widlel = aug: ALAA Rovoll so-¥-2010 4,40,000 | aue-a-zoroil sov-rore | 4,£0,000 al wezoroM st-azzoto | | | z,00;000] all aLNRoroMsn-4z-2010] - 2,¥0,000 se a 0,000 %,00,000 ‘¥,00,000 aU €,000 | sia ial €0,000 UR 42,000 | mig wh 42,000 wadelbnd UR Oy €,000, Raz 4 4,000 are 4,000 ALAM Bett RON ad 3,000 walks wal RNR wad wid avotl 9,000 OTad az we RRs 44,000 al aa 4€,000 | « 92,000 82,000 Alawar 3. 1,000¥iedl 3. goo wet Uaint BaLeLdat B. wut wal AA ull tal-qsart calad Aue WA si-gsatd Mud dae a. P-2695] aL [Contd...w(t) eet BBE Bur ct. a-w-ROVOML Dy aeiwtdl HD 4O al. 4-4-20%0e wdlea sravri mudl edl. Af de 23 Sal] WHIBYA AL. BI=U-ZOLOA Dy HL ed AM riled ued tue udei MA aL UD Aa callad was deuRsal P-2695] (a) (9) Aria ood RA 2010 yl Aust : 3. 2,%0,000 Aust eae A yx ed + mypidl A Sorudl > Waa wus Aeusell as4 Ay yt MA Yau: wa wks Arusr Fed allsdor : art vis aur Fed AVR mA Rare : aaa ws Aauvll ase Uda MRrteiled Que Rsar|_ ed. Aaa ala! usde 3. €0}000 adiadl wal 3. €0,000 WaMUY 3. %,%0O widleBra ue ous 3. & "400 (odleBad at. 4-¢-2010¢8 De asdl scl) Suc aati val 3. 2,600 Aad sad g. 12,000 derila am = 3 Heflell tinell usaiet ter Guar. 10 (Contd...Yael Sul WPRsd al. 3t-s- Rove Ave sei Vay aie AA ye 8: Gur MLA 2] oat dl 2 zarere 3,€¥,000'| Saal ad 44,00,000 OUR G¢,g00 | Reseedl alt 24,000 Raia ou 24,000 | Aeieid YO,000 Awina 4,34,000 | sittiz és 4,000 ada wal 34,000 | maliclld sa 24,000 Rélaa aaa 94,000 | ara BRS (at.4-¥-23) 194,000 shee wal 12,000 | mr ave 4,00,000 Rast wal au,000 | az dened ¥0,000 Poe 10,00,000 | weil Réiaa seu a] RRS ase} £0,000] (at, 34-3-20Ren, eel donde 20,000 | dy wed a4 al) 10,00,000 ddl ¥,00,000 | aaiei (u% dauady ala) | &,32,000 ells RAY Arad (a. a-¥-93] 240,000 (yatta 2,3¥,000) 4,24,000 | Hale au 3,30,000 aaueida qed 82,000 | siel-qpeatin siaell wid sruGell ae viiaedd (ai. e204) 0,000 (aigeartai) 980,000 | MIMI atte 400,000 auGel qsde wiasdd waa RRS 26,€30 (ata atai) 4,0,000 als (at. 4-4-2098) MO,000, Ass a ds w4,000 azz 4,090,000 Age Rint Sada es a. tod, AAs 2. o.Nod oud 94,000 MAHL USI 20,000 wel 38, x00 sade gsm ete 20,000 aaa 4 ¥0,000 P-2695] u [Contd...wad Y,00,000 rave veld (al. 1-9-2018 gate eal gz. W2,000) | 2,02,000 aihe 24,000 % ead Rullafle 10,000 ao%ll Bt malaelld 2,00,000 aelga 29,630 ¥U,3¢,€30 vu,ae,e30 equal: (1) Baan ews wdleBad 3. 9,30,000 8, Fi 20% atarl oarbrd Yo% wel 8, Ur 30% wal anebra vo% a4, B. Da ord aa ural @ FA 3. 19,000 warial wr 8. (2) ratrerellad 42 94% WA wHlrsit UR 2% AA Ua award &. (3) Aauerri vias ur sda 3, 20,000-1 Brdat aad ada ae ®. a Ala usar Bud 1€,000 8, at. 39-3-200%4 VY SAA eu] B 3 €0% ord Aid AHA wll Ald vd. (ew) Weawelti ats go-e-rorwer Ae YR vat Ravel afar aude aletl 3. 1,ROO MAL AL. BA-AR-ROTHAL DY YR act ear Adit 3. 4,2ood andawd, (W) at. 84-3-20%% WA ULsdl 2. G0,000-1 Aellkad agai’ aaa audi 8, (e) at. sa-aRorsen Ye yaradial wz wuasdal sare 2. 2,00,000 «él ad, ag af He 3. a,04,000¢d1 Arras a. (9) at. 39-3-RoV¥L DY YR Ad at AB wg at asia 3. 16,NOO AMI BAA VA aS LAL UE 10% AHL RRssll rarer Reseda sd 8. Guadlsd wd uel dl. at-s-Roreen Vy YA aa aly Aj MSLsUled Was dat ad aided Ded Ge} wg ardy au sd. P-2695) 12 ({€ontd..,ENGLISH VERSION Instructions : (1) As per the’ instruction no. 1 of page no. 1. @ Q.No. 1 is compulsory. (3) Figures indicates in the right show marks. (4) Necessary calculation is the part of answer. 1 Answer the following questions @) ) P-2695) Show the effects in the annual accounts of the 3 company, after taking into consideration the balances of the trial balance on 31-3-2014 and adjustments mentioned below ; Rs. Sales (including 5% sales tax) .. 9,56,250 Sales tax paid. ... 83,750 Debtors .. . 4,114,250 Adjustment + ‘The sales figure includes goods worth: Rs. 22,500 sent on sale or return. The cost price of the goods is Rs, 18,000. Customers had informed on 31-3-2014 that they have 1 retained e of the goods. ‘The following is the balances in the books of the 2 company = Rs. 10% debentures .. .. 5,00,000 Freehold properties ... . 3,00,000 Debentureholders agreed to take over in part settlement of their dues a freehold properties at Rs. 2,50,000. (book value Rs. 2,00,000) Balancing value of freehold properties is 20% more than its book value. Pass journal entries regarding capital reduction in the books of the company. 13 {Contd...© @ Find out only sales proportion and pre and post 3 incorporation gross profit. Business purchase on 1-4-2013 Incotporation date 1-8-2013 Year ending on 31-3:2014 Gross profit Rs. 2,25,000 The rate of gross profit was uniform for the whole year. April, August, November sales : Twice the Average sale 1 December sales : 5 of Average sales 1 May sales : fe of Average sales September sales : Average sales Remaining sales during the remaining period where under similar (same) standard. Write note on : 5 Meaning and objects of External reconstruction 2 | The Balance Sheet of TAJ Ltd. as on 31-3-2014 is 13 as under : Liabilities Rs. |, Assets Rs. 60,000 equity shares of Goodhill 40,000 Rs, 10 each fully paid 600,000 | Machinery 3.50,000 3,000, 10% preference shares Land-Building 3,00,000 of Rs. 100 each fully paid 3,00,000 | Stock 1,60,000 9% debentures 1,00,000 | ‘Debtors 1,90,900 Interest accrued on debentures |. 9,000 | \Cash-Bank 70.000 Creditors 1,00,000 |: Preliminsiry Exp. 24,000 Depreciation fad on machinery} "50,000 | Profit and’ Less Ave 000 159,000 11,59,000 P-2695] 14‘The followitig’ scheme of reconstruction was passed and sanctioned by the ‘court : () A new company SIRTAJ Ltd. is formed with’ share capital of Rs. 10,00,000, divided into 1,00,000 equity shares of Rs. 10 each. , , : (2) A new company SIR TAJ Ltd. will acquire the assets and liabilities of TAT Ltd, on the following terms : @ Debéntureholders of the old ‘company should be given 15% debentures of thé new company, of such value as to give them interest annually, which they used to receive earlier. (i) For their accrued interest, shares of equal amount are issued at par. Gii) The creditors are to be paid for every. Rs. 100, Rs, 20 in cash and 8 equity shares at par. (iv) Preference shareholders are to be-given 10 equity shares of the new company in exchange of every 1 preference share held by them in the old company and for arrears of their dividend amounting Rs, 30,000 6 shares are issued at par for each Rs. 100 in full satisfaction. (v) Current assets are to be taken at book value except stock. book value of stock is 20% less than market price which is to be taken at market price. (vi) Value of machinery should be consider 20% less. (vii) The balance of the purchase consideration being attributed to landyand building. (viii) Equity. shareholders are issued one shares of the new company at par, for 2 shares held by them. (3) Reconstruction expenses of Rs. 10,000 are to be borne by the new company. | (4) Remaining shares of the new company are issued to the public and are fully paid. You are required to prepare + (1) In books of TAI Ltd. (a) Realisation A/c. (b) Equity sharcholders’ A/e. (2) In books of SIRTAJ Ltd) Balance Sheet after scheme of reconstruction. OR P-2695] 152 The following is the Balance Sheet of AMAN Ltd. 13 as on/31-3-2014 : Liabilities Rs. | Assets Rs. Equity shares of Goodwill 1,00,000 Rs. 100 each 10,00,000 } Patent 50,000 12% prof, share capital Land and building 7,00,000 shares of Rs. 10 each 6,00,000 } Machinery 4,00,000 15% debentures 2.00,000 | Furniture 8,00,000 Interest accrued on debentures}. 30,000 | Stock 1,00,000 Creditors 1,70,000 } Debtors 1,00,000 Contingent liabilities : Cash 1,00,000 1 yea pref, dividend is in sirrotind Preliminary Exp, 50,000 Profit. and Loss ‘Ve 1,00,000 [20,00,000 20,00,000 ‘The following scheme of reconstruction was passed and sanctioned : @) A new company CHAMAN Ltd. is formed with share capital of Rs. 30,00,000 divided into 3,00,000 equity shares of Rs. 10 each to take over the business of AMAN Ltd. @) Three equity shares, each Rs. 5 paid, of new company will be given against two equity share of old company. Three equity shares, each Rs. 5 paid, of new company will be given against two preference shares, (3) To give Rs. 50,000 in cash to AMAN Ltd. P-2695] 16 {8 [Contd..(4) For each Rs. 100 arrears of pre. dividend 8 fully paid equity shares of new co. to be given, (6) ‘The debentureholder of 15% to be issued 15% debentures at 20% discount so as to give them a premium of 10%. © Creditors include fully secured creditors of Rs, 70,000. Fully secured ers. are paid in cash. Remaining creditors have been given 50% amount in cash in fully and final settlement. (1) New company will accept assets with values as determined below : Land and building. Rs. 6,00,000 Machinery .. -Rs, 3,00,000 Furniture... -Rs, 2,00,000 Stock Debtors... Paten Nothing has been realised. (8) Liquidation expenses was Rs. 10,000 of AMAN Ltd. (®) New company offers the remaining shares at par to ' public. The offer was fully subscribed. Prepare : (i Tn books of AMAN Ltd) " (a) Realisation A/c, “(Equity shareholders’ A/c. @ Cash Alc 2). In books of CHAMAN Ltd. Balance Sheet after scheme of reconstruction. P-2695] 17 [Contd...3 The Balance Sheet of Sarvottam Limited as on 31-; 13 was as follows : Liabilities Amt. Rs.| Assets |Amt. Rs, 2,000 equity shares of Goodwill 40,000, Rs. 100 each 2,00,000 Patent 10,000 1.000, 10% cumulative Land-building preference share of Rs. 100 each 1,00.000 | (Market value Rs, 2.00,000) 80,000 General reserve 20,000] Machinery : 15% debenture 1.00.00]. Market value Rs. 50,000) |, 70.000 Unpaid debenture interest 15,000] Stock 30,000 10% bank loan 50,000 Debtors 80,000 Creditors 65,000, -BDR. 4.000 76,000 Cash balance 14,000 Profit and Loss Ave. 2,30,000 i) 5,50,000 550,000, The following capital reduction scheme was approved : () The value of equity share is to be reduced by Rs. 90. 2), Preference shares transferred into non-cumulative and reduced the value upto Rs. 20. (8) Debentureholders waived their unpaid interest. (4 Interest on”10% ‘bank loan for’6'months paid’by cash and bank Joan paid by giving equity shares of Rs. 10 each. () Creditors waived their 40% amount. () ‘The interest on preference shares was in arrears for 2 years for which against every Rs. 100 one equity share of Rs. 10 issued. (All intengible assets and loss written off, other ‘assets should be shown in books at their market value. One debtor of Rs. 5,000 became insolvent and nothing can be received from him. Provide 10% B.D.R. on’debtors. Give journal entries and prepare new Balance Sheet. OR P-2695) 18 {Contd...3 (a) The Balance Sheet of the Metro Limited as on 10 31-3-'13 is as under : ‘Amt. Rs. | Assets |Amt. Rs. or rir Equity share of Rs. 10 Goodwill 70,000 each, fully paid Land and building 3,00,000 10% cumulative preference ‘Machinery 75,000 share of Rs. 100 each, Patents 40.000 fully paidl 200,000 | Investments 50,000 8% debenture 1,50,000 | Stock 000 Interest agerued and Debtors 1,90,000 due on debenture 6,000 | Preliminary expense 00 Bank overdraft 84,000 | Profit and Loss Ae. 2,65,000 Director's loan 50,000 Creditors 210,000 12,00,000 12,00,000 The following scheme of capital reduction is approved and implemented : (1) Each equity share to be reduced to Rs. 3 and each preference share to be reduced to Rs. 60. P-2695] 19 [Contd...@) @) 4) © 6 in Dividend on preference shares are ‘not declaréd'and paid for last three years. Out of the dividend in 2 ‘8 . arrears + are to be waived and for the remaining amount equity shares are to be allotted. The debentureholders agreed to have their accrued and due interest paid in cash and to take over land and building, having a book value of Rs. 50,000 at a valuation of Rs. 75,000 in part payment of, amount due to them. Remaining land and building is valued at Rs. 3,00,000. Investments are sold for Rs. 95,000. The Directors accepts settlement of their loan as to 80% of there of by allotment of equity shares, as to 10% in cash and the balance being waived. All invisible and fictitious assets are to be written off. The remaining amount js to be utilised in writing down stock and debtors in the proportion of 3:2. Pass necessary journal entries in the books of the company. () Write short note on Capital Reduction. P-2695] 20 [Contd...4 Abhishek Limited incorporated on 1-5-2010 to purchase 13 the business of Amitabh from 1-1-2010. Purchase price was Rs, 2,00,000 in which Rs. 1,75,000 of assets and Rs. 25,000 of goodwill, Purchase price paid on 1-7-2010 in which 5% debenture of Rs. 1,00,000 and remaining cash given. The profit and loss A/c. for the year ending 31-12-2010 was as follow : Profit and, Loss A/e. Dr. Gr. Particulars Amt. Rs. | Particulars lAmt. Rs. Net purchase : Sales 1-1-2010 to 30-4-2010, 1,40,090.|., 1-1-2010 to 30- 1,60,000 2010 to 31-12-2010, 2,00,000 }, 1-5-2010 to 31. 240,000, Gross profit 60,000 4,00,000 4,00,000 ‘Taxes 6,000 | Gross profit 60,000 Salary, 12,000 | Rent received 12,000 Interest on purchase price. 6,000. Director fee 1,000 Bad debts 1,000 Bad debts reserve 2475, Depreciation 3,000 Preliminary expense z 2,525 Goodwill written off 7,000" Dividend on equity shares 15,000 Net profit 16,000, 72,000 72,000 In bad debts Rs. 1,000, RS: 700 of debtors’ of before incorporation. Prepare Profit and Loss A/c. showing profit prior and after incorporation. OR P-2695] 21 {Contd... y4 @ ) » P-2695]) Ram Limited was incorporated on 1-4-2010 to take.pp 10 over the business of Laxman from 1-1-2010. The company was granted certificate to commence the business on 31-5-2010. From the following information, prepare a statement showing profit prior and after” incorporation ; (1) Sales during Jan. 2010 to Dec. 2010 : Rs. 2,40,000. The trend, of the sales was as under : Jan. and Feb. : Half the average sales in cach month May, June and July : Average sale in each month October : Average sale November and December : Half the average sales in each month Remaining months equal in each month. @) Cost of goods sold Rs. 60,000. @) Administrative expenses Rs. 60,000. (4) Bad debts Rs. 2,400, | (5) Interest on purchase, price Rs. 2,100. (Purchase price paid on 1-8-2010) ©) Expenses pertaining’ to company Rs. 8,000. (@,__ Salesmen's commission Rs, 12,000, Write short note on : 3 Use of profit prior to incorporation. 22 es ~[Contd....5 The Trial Balance of MAHI Co. Ltd. as on 31-3-2014 18 as follows : Debit balances Rs. | Credit balances Rs. Debtors 3,64,000"] Equity share capital Salary 98,600 | Directors loan Debenture interest 25,000 | Creditors Livestock 1,35,000 || Provident fund Administrative expenses 35,000 | Security premium Debenture discount 75,000 | Proposed dividend (1-4-13) Motar expenses (/ 18,000 } Public deposit 1,00,000 Development exyenses 15,000 | Share transfer fee 40,000 Computer, 10,00,000 | 5% debentures Paid last year dividend. 60,000 | (payable on 31-3-2028) 10,00,000 Stores ~ spareparts 20,000 | Sales (Ineluding Purchases 4,00,000.] 5% sales tax) 9,32,000 Land and building Provision for ace vahie of 234.000) 1,95,000 |" income-tax (1-4-15 2,50,000 Sales taxes paid 82,000 | Interest 3,30,000 Income tax Profit and Loss paid in advance 1,50,000 | Appro, Ale, (1-4-2013) 40,000 Income tax paid General reserve 1,00,000 (Last year’s) 1,90,000 | Dividend 28,630 Stock (1-4-2013) 50,000, Cash and bank 55,000 3 Motarear 00,000 Equity shares of MEHUL Ltd] of Rs, 10 each (Rs. 7.50 paid up per ghare) 75,000 Carriage outward 20,000 Wages 36400 Contribution to provident fune| 20,000 Directors fee 5 40,000 Goodwill +5,00,000 Plant-machinery (Depreciation up to 1-4-2013 Rs. 52,000) 2,08,000 Audit fee 000 ‘Telephone deposite 10,000 Government Securities of 10%] 1,00,000 Bill receivable 87,630 45,39,630 45,39,630 P-2695] 23 [Contd...Adjustments ; oO 2) @) (4) 6) © @ The purchase price of closing stock is Rs. 1,30,000. Out of this the market price of 20% stock is 50% less than purchase price, while market price of 30% stock is 40% more than, purchase price, Some part of stock is defective and needs repairing of Rs: 17,000. Provide depreciation at 15% on plant-machinery and 2% on land and building. The sale figure includes goods worth Rs. 20,000 sent on sale or return. ‘The ‘cost price of the goods is Rs. 16,000. Customers had informed on 31-3-2014 that they have retained 60% of the goods. Motor expenses include Rs. 1,200 for license fee for the year ending on 30-6-2014 and Rs. 1,800 of ii cid premium for the year ended on 31-12-2014. & Bills receivable of Rs. 30,000 were discounted with the bank and had matured after 31-3-2014. ‘The income-tax liability for the accounting year ended on 31-3-2013 has been agreed at Rs. 2,00,000. Provide Rs, 1,75,000 in respect of taxation for this year. The management (Directors) has recommended a dividend of 10% on equity share capital after transferring Rs. 18,500 to general reserve out of the current year profit. From the above information, prepare Vertical Profit and Loss Statement the year ending 31-3-2014 and Vertical Balance Sheet as on that date. P-2695] 24 117200 ]