Cury Debit (Rs)

30. The manufacturing company is in the process preparing the income statement and balance
sheet Since you are the chief account officer of that company and you have given the
responsibility of preparing these statements from the unadjusted tnal balance given below
Particulars
Opening stock
47 000
Purchase
350 000
Plant and machinery
5,00,000
Carriage inwards
5,000
Wages
7.000
Salary
21.000
Cash and bank
1.80,000
Sundry debtors
80,000
Investment
1,00,000
Trade mark
10 000
Rent and rates
36,000
Prepaid Insurance
13,000
Furniture
25 000
Share capital
500 000
Sales
6.00.000
Sundry creditors
Bank overdraft
10% Bank loan
Commission
14.000
Total
1,374,000 1,374.000
Additional Information:
i Closing stock Rs 35,000
1 Depreciate plant and machinery by 10% p. a.
Salary paid in advance Rs 3000
iv. Provision for tax 25%
Required:
а. Income statement
b. Balance sheet
С. Current ratio, inventory turnover ratio and debt to total capital ratio
Ans: (a) NI Rs. 102,000 (b) Rs. 896,000 (c) 2.16-1:9.12 9 times: 24.92%
40.000
70,000
1.50 000
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