The following balances appeared in the books of the Moon-Light Co. Ltd. as on 31st March, 2011:


Question Description:

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The following balances appeared in the books of the Moon-Light Co. Ltd. as on 31st March, 2011: Dr. Cr. Issued, Subscribed and paid-up Capital: 60,00,000 Equity Shares of 100 each 6,00,000 General Reserve 2,50,000 Unclaimed Dividend 6,526 Trade Creditors 36,858 Buildings at cost 1,50,000 Purchases 5,00,903 Sales 10,83,947 Manufacturing Expenses 3,59,000 Establishment Charges 26,814 General Charges 31,078 Machinery at Cost 2,00,000 Motor Vehicle at Cost 30,000 Furniture at Cost 5,000 Opening Stock 1,72,058 Book Debts 2,23,380 Investments 2,88,950 Depreciation Reserve 71,000 Advance Payment of Income-tax 50,000 Cash Balance 72,240 Directors‘ Fees 1,800 Interest on Investment 8,544 Profit and Loss Account 1st April, 2010 16,848 Staff Provident Fund 37,500 21,11,223 21,11,223 From these balances and the following information, prepare the Company‘s Balance Sheet as on 31st March, 2011 and its Profit and Loss Account for the year ended on that date: (a) The stocks on 31st March, 2011 were valued at Rs.1,48,680 thousand. (b) Provided Rs.10,000 thousand for depreciation on fixed assets, Rs.1,800 thousand for Managing Director‘s remuneration and Rs.6,200 thousand for the company‘s contribution to the Staff Provident Fund. (c) Interest accrued on investment amounted to Rs.2,750 thousand. (d) A provision of 50,000 thousand for taxes in respect of the profit for 2010-11 considered necessary. (e) The directors propose a final dividend @ 8% after transfer to General Reserve Rs.30,000 thousand. (f) A claim of Rs.2,500 thousand for workmen‘s compensation is being disputed by the company. (g) The market value of investments as on 31.3.2011 amounts to Rs.3,02,500 thousand.

Answer

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