Weekend Assignment

Case of Mahesh Foods Ltd.

Following Trial Balance as at 31
st
march 2006 has been prepared from the account books of Mahesh Foods Ltd.
S. No. Account Heads Dr. (Amt. In Rs.) Cr. (Amt. In Rs.)
1 Share Capital 24,00,000
2 Repairs and Maintenance of Plant 51,600
3 General Reserves 6,00,000
4 Profit and Loss Account Balance of Previous year 10,60,000
5 Raw Material Inventory (as on 31
st
March 2006) 16,02,000
6 Plant and Machinery 25,80,000
7 Sundry Creditors 18,40,000
8 Land 4,80,000
9 Furniture 73,200
10 Sundry Debtors 10,40,000
11 Rent Paid 1,31,800
12 Prepaid Expenses 27,600
13 Advance taken from Customers 3,00,000
14 Power and Fuel expense 1,52,800
15 Travelling and Conveyance expenses 94,600
16 Auditors Annual fee 39,000
17 Cash at Bank 2,48,000
18 Advance paid to staff 31,800
19 Misc. Income 3,72,600
20 Finished Goods inventory as on 1
st
April 2005 18,60,000
21 Raw material Purchases 1,71,60,000
22 Sales 2,53,80,000
23 Buildings 4,44,600
24 Salaries paid 42,20,000
25 Wages Paid 17,65,000
26 Deposits with Govt. Authorities 2,68,400
27 Cash Credit Indian Bank 4,00,000
28 Bank Interest Expense 45,000
29 Cash In hand 37,200
Total 3,23,52,600 3,23,52,600

Further Information:
1. The authorised share Capital of the company is 3,00,000 3quity shares of Rs. 10 each of which
2,40,000 shares have been issued.
2. The closing Stock of finished goods is valued at Rs. 33,50,000/-
3. Depreciation is to be charged:
a. Plant and Machinery @ 14%
b. Furniture and Fixtures@ 18%
c. Building @10%
4. Provide for Income tax @ 35%
5. Transfer to General Reserve @5% of net profit.
6. A dividend of 15% recommended by the board of Directors
Required:
Prepare the following: Profit and Loss Accounts, Profit and Loss appropriation Account for the year ended on
31
st
march 2006. Balance Sheet of Mahesh Foods Ltd. as on 31
st
March 2006