Assignment The following is the Trial Balance of Mahabharat Ltd. as at 31.03.2011 Particulars Stock on 1.4.

2008 Purchase Wages Carriage inward Salaries Sundry expenses Bills Receivable Plant & Machinery Rent Furniture Interim Dividend Debtors Cash at Bank Patents and Trade Marks Dr. 75,000 2,45,000 30,000 950 7,500 7,050 5,000 29,000 4,000 17,000 9,000 27,500 46,200 4,800 5,08,000 5,08, 000 Particulars Cr.

Purchase returns 10,000 Sales 3,40,000 Discount 3,000 P& L Bal.(31.3.08) 15,000 Share Capital 1,00,000 Bills Payable 7,000 General Reserve 15,500 Creditors 17,500

Prepare profit & Loss Account for the ended 31.03.2011 and a Balance Sheet as that date. Additional information: i) ii) iii)
iv)

v) vi) vii)

Stock as on 31.03.2011 was valued at Rs. 88,000 Make a provision for income tax @ 50% Dep. Plant @ 15%, furniture @ 10% and patents @ 5% On 31st march 2011, outstanding rent amounted to Rs. 800 while outstanding salaries were Rs. 900. The directors proposed a dividend @5% p.a for the year ended 31.3.2011 in addition to interim dividend Provide for managerial remuneration @ 1% of the net profit before tax Transfer to General Reserve Rs. 3,000