0444 Assignment No 2 Solution 2022-Autumn AIOU-Q 1 Ans-Advance Accounting
Question
The Yasir Corporation was registered with a nominal Capital of Rs.
1,200,000 divided into equity shares of Rs. 10 each. On 31 March 2021 the following ledger balance were extracted from the company’s book:
Equity Share Capital up and Paid Up 920,000 10% Debentures 600,000
Plant and Machinery 720,000 Sales 830,000
Stock (1-4-2020) 150,000 5% Govt. Securities 120,000
Fixtures 14,400 Reserve for Doubtful Debts 7,000
Preliminary expenses 10,000 Sundry Creditors 100,000
Freight and Duty 26,200 Sundry Debtors 174,000
Goodwill 50,000 Buildings 600,000
Wages 169,600 Bad debts 4,220
Cash in hand 19,700 Commission paid 14,400
Cash at bank 76,600 Salaries 29,000
Director’s fees 11,480 Purchases 370,000
Bills Payable 76,000 Interim dividend paid 15,000
General Reserve 50,000 Rent 9,600
Profit & Loss A/c (Cr) 1-4-2020 29,000 General Expenses 9,800
Office Equipment 8,000 Debenture Interest 10,000
The following adjustments were to be made:
i. The Stock on 31st March, 2021 was estimated at Rs. 200,000
ii. Final Dividend at 10% to be provided.
iii. Depreciation on Plan and Machinery at 10% and on Fixtures at 5%
iv. Preliminary expenses to be written off
v. Rs. 30,000 were to be transferred to General Reserve
vi. The provision for bad debts to be maintained at 10% on sundry debtors
Required:
You are required to prepare the
(i) Trading and Profit and Loss
Account and
(ii) Profit and Loss Appropriation Account for the year ended 31st March 2021 and the
(iii) Balance sheet as on that date.
