ahsan seeds limited was incorporated with a nominal capital of Rs. 10,00,000 composed of equity shares of Rs. 10 each. The following trial balance was extracted from the books as on 31st December 1993.
Dr Cr
Rs Rs
Share capital (fully called-up) 4,00,000
Stock.......................... 1,00,000
Gross profit.................. 2,00,000
Sundry debtors and creditors... 1,45,000 30,000
Fixed assets (at cost):
Furniture............ 60,000
Motorcar............ 21,000
Premises............ 2,00,000
Depreciation provision up to
31st December , 1992:
furniture................ 10,000
motorcar............... 6,000
premises............... 5,000
salaries.................. 35,000
printing & stationary......... 1,000
postage & telegrams.......... 1,500
motor car expenses............ 4,500
investments in shares (at cost) 15,000
dividends 1,500
audit fee 750
directors fee 1200
profit and loss account 31-12-1992.... 26.000
cash at bank..................... 91.680
cash in hand..................... 1.870
TOTAL 6, 78,500 6, 78,500
The following further particulars are available:
1. market value of shares as on 31st December 1993 Rs. 16,000.
2. depreciation to be provided on furniture at 10% motor car at 0%. Premises at 2.5%
3. provision to be made for :taxation Rs.70,000: proposed dividens at 15% you are reuired to draw up the:
(a) profit and loss account for the year 1993
(b) profit & loss appropriation account
(c) balance sheet as at December 1993