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Company Final Account

Class:B.COM IIRoll No:Advance Financial AccountingTime:1:15

Total Marks:40

Note: attempt all questions all questions carry equal marks.

Q1.Star Auto part Company has authorized capital of Rs. 5,00,000 dividend into 50,000 Shares of Rs. 10 each, of which 20,000 shares had been Issued and fully Paid. The following Trial Balance is extracted on 31st-December 2002.ParticularsDebitRs.CreditRs.

Stock on Jan 1, 200293210

Returns63404925

Sundry manufacturing Expenses19620

9% Bank Loan25000

Office Salaries and Expenses34500

Directors remuneration13230

Free hold Premises98000

Furniture7500

Cash hand1240

Profit and Loss Account19320

Investment24000

Debtors52700

Share Capital200000

Purchase & Sales359105584750

Creditors31110

Carriage2450

Clearing Charges12500

Interest on Bank Loan1125

Auditor Fee11620

Preliminary Expenses9000

Plant & Machinery74200

Cash at Bank9765

Advance Income Tax Paid35000

865105865105

Adjustments:(i)On 31st December 2002 closing stock valued at Rs. 64240.(ii)Outstanding wages Rs. 1380 while office salaries Rs. 1500 are still payable.(iii)Depreciation on plant and Machinery is to be Provided @ 15% and on Furniture is to be 10%.

(iv)Market value of Investment on 31-12-2002 is Rs. 25000/-.(v)Directors recommended the followings.(a)Provision for Income Tax @ 30% of net profit.(b)Dividend @ 15% to the share holders on paid up capital.(c)Transfer to general Reserve Rs. 10,000.Required:Prepare Trading, profit and Loss Account for the year ending 31-Dec-2002 and Balance Sheet as at that date.

Q. No. 2:The following data is related to Sara Sundus company for the year 31st Dec. 2000.

Debit BalancesRs.Credit BalancesRs.

Building175,000Issued subscribed paid up capital

Purchases(60,000 equity shares of Rs. 10 each)600,000

Manufacturing expenses202,800General reserve250,000

Establishment expenses36,814Unclaimed dividend6,526

General charges31,078Trade creditors36,858

Machinery200,000Sales983,947

Motor vehicles95,000Depreciation reserve71,000

Furniture15,000Interest on investments8,544

Opening stock172,058Profit & Loss A/C 1st January 200016,848

Book debts148,380Staff provident fund37,500

Investments288,950

Cash72,240

Directors fees18,000

Interim dividend45,000

Repairs & Renewals10,000

20,11,22320,11,223

Adjustments:1. The stock on 31st December 2000 was valued at Rs. 148,680 (Market value at Rs. 149,000).2. Provide Rs. 20,000 for depreciation on fixed assets, Rs. 6,500 for Manager commission and Rs. 1500 for companys contribution toward provident fund.3. Interest accrued on investment amount to Rs. 2,750.4. A provision of Rs. 30,000 is necessary for taxation.5. Director propose a final dividend of Rs. 45,000.6. Claim of Rs. 5,000 for workman compensation is disputed.7. Credit sales of Rs. 1,600 were left unrecorded.Required:Prepare Trading and Profit and Loss Account and Balance sheet.

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