M/s. Gokulasth Farmers Producer Co. Pvt. Ltd.

Observa ons
1. Is this company is manufacturing company?
2. If NO then rec fy closing stock to ₹ 8,45,878 i.e.
a) Difference between Purchases and Sales (₹ 90,96,389- ₹ 82,50,511 = ₹ 8,45,878)
b) As balance sheet is showing ₹ 30,00,000
3. If whole Purchases was made from only Gokarana Traders which is amoun ng ₹ 90,96,389
then
a) Total payment made to Creditors was ₹ 17,39,077
b) In that only ₹ 3,33,500 was made through bank
c) How to consider remaining payment of ₹ 14,05,577
d) Whether we need to consider as cash payments or need to consider as discount
received
4. Total Bank Credits
a) Share capital ₹ 1,00,000
b) Loans from Directors around ₹ 6,00,000
c) Remaining cash deposits ₹ 2,95,926
5. Total Bank Debits
a) Gokarna Traders ₹ 3,33,500
b) Na onal Seeds ₹ 5,90,000
c) Other Payments ₹ 55,679
6. In Balance sheet Assets side, an amount of ₹ 24,00,000 is showing as Advances
a) To whom company has given those advances
b) Mode of payment for those advances, as those are not made through bank
7. If we consider that sales amoun ng ₹ 82,50,511 was completely through cash
a. Then difference between Sales and Debtors outstanding will be treated as cash
received by the company i.e.
b. ₹ 82,50,511- ₹ 25,69,825 = ₹ 56,80,686
c. If company has made following payments through cash:
i. Advances amoun ng ₹ 24,00,000
ii. Expenses amoun ng ₹ 16,73,443
iii. Creditors amoun ng ₹ 14,05,577
iv. Remaining cash balance with the company should be ₹ 2,01,666 but only ₹
70,740.25 is showing as cash balance
8. Balance sheet has been prepared without being carried forwarding the Net Profit amount
which is amoun ng ₹ 4,25,000 while dra ing Balance sheet.