FINACMAN 6th Ed.
CHAPTER 4-SOLUTION
Ex. 1
Req. 1
Financial statements
SANJAY INDUSTRIES LTD.
BALANCE SHEET AS AT 31ST MARCH 2006.
Liabilities
Amount
(Rs.)
Assets
Amount
(Rs.)
Share Capital
Fixed Assets
Authorised
2,00,000 shares of Rs. 10
each.
20,00,000
Patents & trademark
Less: Amortised@
5%
43,200
2,160
41,040
Issued, Subscribed and
Paid-Up:
90,000 shares of Rs. 10
each.
9,00,000
Plant & Machinery
Less: Dep.@ 14%
2,61,000
36,540
2,24,460
Reserves And Surplus
Furniture & fittings
Less: Dep. @ 18%
1,53,000
27,540
1,25,460
General Reserve
Add: created during the
year
1,39,500
16,303
1,55,803
Current Assets,
Loans & Advances
Balance in P&L A/C
2,73,758
A. Current Assets:
Current Liabilities and
Provisions
Inventory
7,92,000
A. Current Liabilities:
Debtors
Less: Provision for
Doubtful Debts
2,47,500
4,590
2,42,910
Creditors
1,57,500
Bills receivable
45,000
Bills payable
63,000
Cash-at-bank
4,15,800
Outstanding Expenses:
➢ Rent
➢ Salaries
➢ Managerial
remuneration
7,200
8,100
55,737
71,037
B. Provisions:
Income Tax
1,75,572
Proposed Dividend
90,000
Total…
18,86,670
Total…
18,86,670
SANJAY INDUSTRIES LTD.
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2006.
Expenses
Amount
(Rs.)
Income
Amount
(Rs.)
Opening Inventory
6,75,000
Sales
30,60,000
Purchases
Less: Purchase Return
22,05,000
90,000
21,15,000
Closing Inventory
7,92,000
Carriage Inwards
8,550
Wages
2,70,000
Gross Profit c/d
7,83,450
Total…
38,52,000
Total…
38,52,000
Salaries
Add: outstanding
67,500
8,100
75,600
Gross Profit b/d
7,83,450
Depreciation:
➢ Plant and machinery
➢ Furniture & fittings
36,540
27,540
64,080
Discount
27,000
Amortisation of patents &
trademark
2,160
Rent
36,000
43,200
63,450
Provision for Doubtful
Provision for managerial
55,737
Provision for Income Tax
1,75,572
Net Profit c/d
Reserve
Proposed Dividend
90,000
Balance Carried to
Balance Sheet
2,73,758
Total…
