trial balance : M/s Micky and Pluto Ltd

Account head debit credit

issued and paid up capital Profit and loss a/c sales accounts payable term loan bank overdraft with boi blls payable accumulated depreciation buildings machinery opening stock purchases buildings machinery accounts receivable bills receivable cash balance bank balance with bob wages carriage inward octroi and freight power and fuel salaries advertisements taxes and insurance rent discount bad debts interest on loan @ 10% preliminary expenses provision for bad debts commission received travelling expenses

2200000 250000 5000000 200000 350000 50000 75000 600000 325000 500000 2000000 3000000 1500000 500000 200000 7000 53000 210000 25000 30000 25000 550000 150000 150000 75000 15000 10000 35000 35000 15000 20000 15000 9085000 9085000

Profit & Loss Account Working Notes: WN 1: Depreciation Building Less: Accumulated Depreciation WDV Less: Depreciation @ 10% WDV Total Accumulated Depreciation 3000000 Machinery Less: Accumulated Depreciation WDV Less: Depreciation @ 15% WDV Total Accumulated Depreciation 416250 1500000

600000 2400000

325000 1175000

240000 2160000

176250 998750

840000

501250

Total Depreciation for 2001:

WN 2: Cost of Goods Sold Raw Material Consumed Opening Stock 500000 Manufacturing Overheads Power & Fuel Taxes & Insurance Less: Prepaid Rent 1930000 25000

Purchases Carriage Inward Octroi & Freight Less: Closing Stock

2000000 25000 30000 625000

150000 25000 125000 75000

225000

WN 3: Selling & Administration Expenses

WN 4: Non-Operating Income

Advertisements Discount Bad Debts

150000 15000 10000

Commission Received Add: O/s

20000 5000

25000

Travelling Expenses Salaries Add: O/s Salaries

15000 550000 50000 600000 790000

WN 6: Propsed Dividend Paid Up Share Capital Dividend @ 10%

2200000 220000

COGS RM Consumed Direct Labour (Wages) Add: O/s Wages Mfg O/H

1930000

210000 10000 220000 225000

2375000

WN 5: Non-Operating Expenses Preliminary Expenses W/off

5000

profit and loss a/c for M/s Micky and pluto ltd. For the year 2001 Net Sales Less: Cost of Goods Sold Gross Profit Less: Selling & Administration Expenses Operating Profit Add: Non-Operating Income Less: Non-Operating Expenses PBIDT Less: Interest on Loans PBDT Less: Depreciation PBT Less: Tax @ 40% PAT Less: Propsed Dividend P/L A/c c/d to Balance Sheet 5000000 2375000 2625000 790000 1835000 25000 5000 1855000 35000 1820000 416250 1403750 561500 842250 220000 622250