Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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SANJAY INDUSTRIES LTD. (
The followingare the balances of Ledger book of Sanjay Industries Ltd. as on 31st March 2006.
|
Stock. 1st April 2005 |
6,75,000 |
Carriage Inward |
8,550 |
|
Purchases |
22,05,000 |
Profit & loss account (31st March 2005) |
54,000 |
|
Sales |
30,60,000 |
Salaries |
67,500 |
|
Wages |
2,70,000 |
Bills Receivables |
45,000 |
|
Share capital (Authorized Capital 2,00,000 shares of Rs.10 each) |
9,00,000 |
Sundry Expenses |
63,450 |
|
Discount |
27,000 |
Bills Payable |
63,000 |
|
Purchases returns |
90,000 |
Rent |
36,000 |
|
Patents & trademark |
43,200 |
Debtors |
2,47,500 |
|
Creditors |
1,57,500 |
Furniture & Fittings |
1,53,000 |
|
Plant & Machinery |
2,61,000 |
Cash at Bank |
4,15,800 |
|
General Reserve |
1,39,500 |
|
|
Further information-
- Outstanding rent amounted to Rs.7,200 while outstanding salaries are Rs. 8,100 at the end of the year.
- Make a provision for doubtful debts amounting to Rs. 4,590.
- Stock on 31st March 2006 was valued at Rs. 7,92,000.
Depreciate plant & machinery @ 14% and furniture & fittings @18%.- Amortize patents & trademarks @ 5%.
- Provide for managerial remuneration @ 10% of the net profit before such commission.
- Make a provision for income tax @ 35% on net profit.
- The board of directors proposes a dividend @ 10% for the year ended 31stMarch 2006 after transfer to General Reserve @ 5% of profit after tax.
You are required to- (Show your workings clearly)
Q A. Prepare following Financial Statements of Sanjay Industries Ltd. (8)
- Trading and Profit & Loss Account for the year ending 31 March 2006
- Balance sheet as on 31st March 2006
Q B. Comment on the Profits of the company such as- (2)
- Gross Profit VS Net Profit
- Net Profit before tax VS Net Profit After Tax
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