Page 359 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Liabilities Assets
Share Capital Fixed Assets
Called up Capital Goodwill 2,50,000
Accounting for Companies-I
40,00,000 Premises 30,72,000
Less calls in arrear 75,000 39,25,000 Plant 33,00,000
Reserves & Surplus Less: Provision 4,95,000 28,05,000
Notes General Reserve 2,50,000 Current Assets, Loans and Advances
Profit & Loss a/c 50,000
Secured Loans Current Assets:
12% Debentures 30,00,000 Stock 9,50,000
O/s Interest 1,80,000 31,80,000 Debtors 8,70,000
Current liabilities and Provisions Provision 43,500 8,26,500
Cash & Bank 4,06,500
Current Liabilities Miscellaneous Expenditure:
Creditors 4,00,000 Preliminary Expenses 45,000
Bills Payable 3,70,000
Provision
Provision for tax 1,80,000
83,55,000 83,55,000

Illustration 10:

From the under mentioned Trial Balance of Gopal Oil Co. Limited, prepare a Trading and profit
and loss account for the year ended December 31, 2006 and the Balance sheet as on that date:

Particulars Particulars
Opening Stock 30,000 Equity share capital 1,00,000
Rates and Taxes 6,000 (1,000 shares of 100 each)
Purchases 60,900 5% debentures 25,000
Wages 55,200 Sales 1,75,000
Discount 1,500 Creditors 8,000
Fuel 2,570 Bank overdraft 12,000
Building 70,000 Discount 2,200
Carriage Inward 1,175 Transfer fee 100
Sundry Debtors 20,000 Returns outward 100
Goodwill 28,000
Plant & Machinery 25,000
Loose Tools 6,000
Advertisement 3,000
General Expenses 4,400
Bad Debts 1,030
Debenture Interest 625
(Half year upto 30.06.2006)
Insurance 3,000
Miscellaneous Expenses 1,000
Cash & Bank Balances 3,000
3,22,400 3,22,400

1. The Authorized Capital of the company is 2,00,000.
2. Stock on December 31, 2006 is 35,000.
3. Depreciate Plant & Machinery @9% and revalue loose tools at 4,100.

4. Allow 2.5% discount on Debtors and 2% as bad debt reserve.

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