Reference no: EM133032045
Problem - Ganguli traders Pvt ltd. deal in trading of stationary items. Given below is the summary of all the ledger accounts along with some additional information:
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Trial Balance as on 31st March 2019
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Particulars
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Debit Amt (Rs)
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Credit Amt (Rs)
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Purchases and sales
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1,302,950
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1,805,000
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|
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24,000
|
1,950
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Wages Expense
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225,250
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|
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Interest on loan
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6,000
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|
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Discount
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8,000
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5,300
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Salaries Expense
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80,000
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|
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Debtors/ Creditors
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300,000
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303,050
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Opening Stock
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400,000
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|
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Bank
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147,850
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|
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Share Capital
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375,000
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Property, Plant and Equipment
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160,000
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|
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Office Expenses
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1,250
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Cash in hand
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5,000
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|
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Insurance Expense
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10,000
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|
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Rent Expense
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20,000
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Loan (12% p.a.) as on 1.4.2018
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200,000
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Total
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2,690,300
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2,690,300
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Additional Information:
1. Depreciate property plant and equipment @5%.
2. During the year, debtors worth Rs. 4,000 turned bad and managers have estimated that the allowance/provision for bad debts should be created @ 2.5%.
3. On March 31, Sales include unearned revenue up to Rs.20,000.
4. Rent is paid from April 1 to June 30, 2018.
5. Wages are outstanding for Rs. 8,000.
6. Unexpired insurance is Rs. 3,000.
7. Stock on March 31 was Rs. 409,250.
Required - Prepare Income statement for the year ending 31st March, 2019 and balance sheet as on 31st March 2019. Show the workings. Comment upon the performance of the company.