Reference no: EM132626069

Question 1: From the following Balances of Best way Cement Limited Company prepares Profit & Loss Account and Balance Sheet with proper working notes from following data.

10,000 Equity Shares 100,000

5% Debentures 80,000

Debentures Redemption Fund 45,000

Debentures Fund Redemption Investment 45,000

General Reserve 29,000

Profit and Loss Account (Cr) 9,000

Stock in Trade 52,000

Machinery at cost 230,000

Delivery vehicles at cost 30,000

Provision for depreciation

Machinery 69,000

Delivery Vehicles 12,000

Debtors 38,000

Creditors 28,000

Bank Balance 30,000

Trading profit 76,000

Debentures Interest 1,000

Directors Salaries 8,000

Transfer to general reserve 6,000

Debentures redemption fund transfer 5,000

The following adjustments are to be made.

a) Outstanding director salaries are Rs. 1500.

b) Depreciate machinery at Reducing Balance Method by 10% and delivery vehicle at cost by 15%.

c) Board of directors proposed bonus for employees 2% on net profit of current year.

d) Tax payable Rs. 3,000