Preparation of Income Statement/ Statement of Profit and Loss



Preparation of Income Statement/ Statement of Profit and LossQ.No.1 From the following information, prepare Statement of Profit and Loss for the year ended 31st March 2019Particulars(Rs. In Lacs)Revenue from Operations2605Other Income40Cost of Materials Consumed1000Changes in Inventories(275)Employee Benefit Expenses850Finance Cost20Depreciation and Amortization Expense150Other Expenses100Tax Rate @ 30%SolutionPart – IIName of the Company: ………………Profit and Loss Statement for the year ended:……… (` in ……..)Particulars Note No. Note No.Amount (Rs.)I Revenue from Operations ?2605 II Other Income ?40 III Total Revenue (I+II) ?2645 IV Expenses: ??Cost of Materials Consumed ?1000 Purchases of Stock-In-Trade ?0 Changes in Inventories of Finished Goods / Work- in-progress and Stock-In-Trade ?(275)Employee Benefits Expense ?850 Finance Costs ?20 Depreciation and Amortization Expense ?150 Other Expenses ?100 Total Expenses?1845 V Profit before Exceptional & Extraordinary Items and Tax (III – IV) ?800 VI Exceptional Items ?0 VIIProfit before Tax (VII-VIII) ?800 VIIITax Expenses: ?(240)(1) Current Tax ??(2) Deferred Tax ??IXProfit / (Loss) for the period?560 XEarnings per Equity Share: ??(1) Basic ??(2) Diluted ??Q.No. 2 The following is the Financial data extracted from the ledger balances of M/s. Toys Co. Ltd for the Year ended 31st March 2018. ParticularsRs. (in Lacs)Sales Revenue4855Cost of Materials Consumed2500 Purchases of Stock-In-Trade 350 Depreciation and Amortization Expense 125 Other Expenses 120 Other Income 225 Changes in Inventories of Finished Goods 300 Employee Benefits Expense 550 Finance Costs 50 Tax @ 25%?SolutionPart – IIName of the Company: ………………Profit and Loss Statement for the year ended:……… (` in ……..)Particulars Note No. Note No.Amount (Rs.)I Revenue from Operations ?4855 II Other Income ?225 III Total Revenue (I+II) ?5080 IV Expenses: ??Cost of Materials Consumed ?2500 Purchases of Stock-In-Trade ?350 Changes in Inventories of Finished Goods / Work- in-progress and Stock-In-Trade ?(300)Employee Benefits Expense ?550 Finance Costs ?50 Depreciation and Amortization Expense ?125 Other Expenses ?120 Total Expenses?3395 V Profit before Exceptional & Extraordinary Items and Tax (III – IV) ?1685 VI Exceptional Items ?0 VIIProfit before Tax (VII-VIII) ?1685 VIIITax Expenses: ?421 (1) Current Tax ??(2) Deferred Tax ??IXProfit / (Loss) for the period ?1264 XEarnings per Equity Share: ??(1) Basic ??(2) Diluted ??Q.No.3From the following figures, prepare an Income Statement for M/s. PW Audio Supply, Inc., for the year ended December 31,2012Sales Revenue480000Depreciation Expense8000Sales Returns12000Freight7000Sales discounts8000Insurance2000Cost of Goods Sold316000Interest revenue3000Salaries & Wages Expenses64000Gain on disposal of plant600Utilities Expenses17000Interest Expense2000Advertising Expense16000Tax @ 25%Solution:Part – IIName of the Company: ………………Profit and Loss Statement for the year ended:……… (` in ……..)Particulars Note No. Note No.Amount (Rs.)I Revenue from Operations 1460000 II Other Income 23600 III Total Revenue (I+II) ?463600 IV Expenses: ??Cost of Materials Consumed ?316000 Purchases of Stock-In-Trade ?0 Changes in Inventories of Finished Goods / Work- in-progress and Stock-In-Trade ?0 Employee Benefits Expense ?64000 Finance Costs ?2000 Depreciation and Amortization Expense ?8000 Other Expenses 342000 Total Expenses?432000 V Profit before Exceptional & Extraordinary Items and Tax (III – IV) ?31600 VI Exceptional Items ?0 VIIProfit before Tax (VII-VIII) ?31600 VIIITax Expenses: ?7900 (1) Current Tax ??(2) Deferred Tax ??IXProfit / (Loss) for the period ?23700 XEarnings per Equity Share: ??(1) Basic ??(2) Diluted ??Note 1: Revenue from OperationsSales Revenue480000 Less: Sales Returns(12000)Less: Sales Discounts(8000)?460000 Note 2: Other IncomeInterest Revenue3000 Gain on disposal of Plant600 ???3600 Note 3: Other ExpensesUtilities Expenses17000 Advertising Expenses16000 Freight7000 Insurance2000 ?42000 Q.No.4From the following figures, prepare an Income Statement for M/s. FALCETTO Company, for the year ended December 31,2012Sales Revenue536800Depreciation Expense9000Sales Returns6700Freight7600Sales discounts5000Insurance4500Cost of Goods Sold363400Interest revenue2500Salaries & Wages Expenses56000Gain on disposal of plant500Utilities Expenses18000Interest Expense3600Advertising Expense12000Rent Expense24000Tax Expense1000Solution:Part – IIName of the Company: ………………Profit and Loss Statement for the year ended:……… (` in ……..)Particulars Note No. Note No.Amount (Rs.)I Revenue from Operations 1525100 II Other Income 23000 III Total Revenue (I+II) ?528100 IV Expenses: ??Cost of Materials Consumed ?363400 Purchases of Stock-In-Trade ?0 Changes in Inventories of Finished Goods / Work- in-progress and Stock-In-Trade ?0 Employee Benefits Expense ?56000 Finance Costs ?3600 Depreciation and Amortization Expense ?9000 Other Expenses 366100 Total Expenses?498100 V Profit before Exceptional & Extraordinary Items and Tax (III – IV) ?30000 VI Exceptional Items ?0 VIIProfit before Tax (VII-VIII) ?30000 VIIITax Expenses: ?1000 (1) Current Tax ??(2) Deferred Tax ??IXProfit / (Loss) for the period ?29000 XEarnings per Equity Share: ??(1) Basic ??(2) Diluted ??Note 1: Revenue from OperationsSales Revenue536800 Less: Sales Returns(6700)Less: Sales Discounts(5000)?525100 Note 2: Other IncomeInterest Revenue2500 Gain on disposal of Plant500 ???3000 Note 3: Other ExpensesUtilities Expenses18000 Advertising Expenses12000 Freight7600 Rent Expenses24000 Insurance4500 ?66100 Q.No.5Prepare a multi-step income statement for the M/s. APP Trading Corporation (a clothing retailer) for the year ending December 31, 2018 given the information below: Advertising expenditures 68,000Management salaries 240,000Beginning inventory 256,000Materials purchases 2,425,000Depreciation 78,000R&D expenditures 35,000Ending inventory 248,000Repairs and maintenance costs 22,000Gross Sales 3,210,000Returns and allowances 48,000Interest expense 64,000Taxes 51,000Lease payments 52,000??Solution:Part – IIName of the Company: ………………Profit and Loss Statement for the year ended:……… (` in ……..)Particulars Note No. Note No.Amount (Rs.)I Revenue from Operations13162000 II Other Income ?0 III Total Revenue (I+II) ?3162000 IV Expenses: ??Cost of Materials Consumed 2?2433000Purchases of Stock-In-Trade 20 Changes in Inventories of Finished Goods / Work- in-progress and Stock-In-Trade ?0 Employee Benefits Expense ?240000 Finance Costs ?64000 Depreciation and Amortization Expense ?78000 Other Expenses 3177000 Total Expenses?2992000 V Profit before Exceptional & Extraordinary Items and Tax (III – IV) ?170000 VI Exceptional Items ?0 VIIProfit before Tax (VII-VIII) ?170000 VIIITax Expenses: ?51000 (1) Current Tax ??(2) Deferred Tax ??IXProfit / (Loss) for the period?119000 XEarnings per Equity Share: ??(1) Basic ??(2) Diluted ??Note 1: Revenue from OperationsGross Sales3210000 Less: Returns and allowances(48000)???3162000 Note 2: Cost of Materials ConsumedOpening Inventory256000 Add: Material Purchase2425000 Less: Closing Inventory(248000)?2433000 Note 3: Other ExpensesLease Payments52000 Advertising Expenses68000 R&D expenditures 35000 Repairs and maintenance costs 22000 ?177000 Q.No.6The following data extracted from the books of M/s. DHL Transport Corp. for the year ended March 31, 2012.Rs.Rs.Sales revenue137460Advertising 5790Sales returns2060Sales Commission3470Sales discounts5190Office Salaries18150Purchases67310Office Rent14000Opening Stock12300Office Supplies Expense5330Freight-In4450Other Income1200Purchase Returns1000Gain on Sale of Equipment2430Purchase Discounts3900Loss on Sale of Investments1640Ending Stock16700Interest Expense930Freight-Out6150Interest Revenue430Tax @ 25%Instruction: Prepare a Multiple Step Income Statement.Solution:Part – IIName of the Company: ………………Profit and Loss Statement for the year ended:……… (` in ……..)Particulars Note No. Note No.Amount (Rs.)I Revenue from Operations1130210 II Other Income 22420 III Total Revenue (I+II) ?132630 IV Expenses: ??Cost of Materials Consumed ?362460 Purchases of Stock-In-Trade 0 Changes in Inventories of Finished Goods / Work- in-progress and Stock-In-Trade ?0 Employee Benefits Expense ?18150 Finance Costs ?930 Depreciation and Amortization Expense ?0 Other Expenses 434740 Total Expenses?116280 V Profit before Exceptional & Extraordinary Items and Tax (III – IV) ?16350 VI Exceptional Items ?0 VIIProfit before Tax (VII-VIII) ?16350 VIIITax Expenses: ?0 (1) Current Tax ?4088 (2) Deferred Tax ??IXProfit / (Loss) for the period?12263 XEarnings per Equity Share: ??(1) Basic ??(2) Diluted ??Note 1: Revenue from OperationsSales Revenue137460 Less: Sales Returns(2060)Less: Sales Discounts(5190)?130210 Note 2: Other IncomeOther Income1200 Gain on Sale of Equipment2430 Loss on Sale of Investments(1640)Interest Revenue430 ?2420 Note 3: Cost of Materials ConsumedOpening Inventory12300 Add: Material Purchase67310 Less: Purchase Returns(1000)Add: Freight-In4450 Less: Purchase Discounts(3900)Less: Closing Inventory(16700)?62460 Note 4: Other ExpensesFreight-Out6150 Advertising Expenses5790 Sales Commission3470 Office Rent14000 Office Supplies Expense5330 ?34740 Preparation of Balance SheetQ.No. 1. The following are ledger balances extracted from the Books of M/s. Milton India Ltd for the year ended 31.3.2019Share Capital46000Furniture and Property20080Long term Borrowing32500Goodwill12000Short term Borrowing1250Capital Work-in-Progress4000Other Long term Liabilities7500Long term Loans25000Reserves and Surplus22600Other non-current Assets14000Trade Payables17520Inventories38000Other current liabilities35250Current Investment3600Long term Provisions2460Short term loans22000Trade receivables15200Other current asset6000Cash and Cash equivalents5200Instruction: Prepare a Balance Sheet as per Schedule III.Part – IName of the Company: M/s. Milton India Ltd.,Balance Sheet for the year ended: 31 March, 2019 (Rs. In '000)ParticularsNote No.Figures for the Current Reporting Period I. EQUITY AND LIABILITIES??(1) Shareholders’ funds??(a) Share capital?46000(b) Reserves and surplus?22600(c) Money received against share warrants??(2) Share application money pending allotment??(3) Non-current liabilities??(a) Long term borrowings?32500(b) Deferred tax liabilities (Net)??(c) Other Long term liabilities?7500(d) Long term provisions?2460(4) Current liabilities??(a) Short term borrowings?1250(b) Trade payables?17520(c) Other current liabilities?35250(d) Short term provisions??TOTAL?165080II. ASSETS??(1) Non-current assets??(a) Fixed assets??(i) Tangible assets?20080(ii) Intangible assets?12000(iii) Capital work-in‐progress?4000(iv) Intangible assets under development??(b) Non-current investments??(c) Deferred tax assets (net)??(d) Long term loans and advances?25000(e) Other non-current assets?14000(2) Current assets??(a) Current investments?3600(b) Inventories?38000(c) Trade receivables?15200(d) Cash and cash equivalents?5200(e) Short term loans and advances?22000(f) Other current assets?6000TOTAL?165080Q.No. 2. The following are ledger balances extracted from the Books of M/s. Lipton India Ltd for the year ended 31.3.2019Share Capital153000Plant, Machinery and Properties110000Retained Earning120000Good Will55000Bank Loan50000Capital work-in-progress80000Other Long term Liabilities22000Intangible assets under development20000Long term provisions2500Short term borrowings22000Trade Payables10000Other Current Liabilities12000Short term provisions1500Long term loans15000Other non-current assets12000Current investments15000Stock25000Receivables33000Cash12000Short term loans12000Other Current Assets4000??Instruction: Prepare a Balance Sheet as per Schedule III.Part – IName of the Company: M/s. Lipton India Ltd.,Balance Sheet for the year ended: 31 March, 2019 (Rs. In '000)ParticularsNote No.Figures for the Current Reporting Period I. EQUITY AND LIABILITIES??(1) Shareholders’ funds??(a) Share capital?153000(b) Reserves and surplus?120000(c) Money received against share warrants??(2) Share application money pending allotment??(3) Non-current liabilities??(a) Long term borrowings?50000(b) Deferred tax liabilities (Net)??(c) Other Long term liabilities?22000(d) Long term provisions?2500(4) Current liabilities??(a) Short term borrowings?22000(b) Trade payables?10000(c) Other current liabilities?12000(d) Short term provisions?1500TOTAL?393000II. ASSETS??(1) Non-current assets??(a) Fixed assets??(i) Tangible assets?110000(ii) Intangible assets?55000(iii) Capital work-in‐progress?80000(iv) Intangible assets under development?20000(b) Non-current investments??(c) Deferred tax assets (net)?0(d) Long term loans and advances?15000(e) Other non-current assets?12000(2) Current assets??(a) Current investments?15000(b) Inventories?25000(c) Trade receivables?33000(d) Cash and cash equivalents?12000(e) Short term loans and advances?12000(f) Other current assets?4000TOTAL?393000Q.No. 3. From the following ledger balances of Franklin Company, You are required to prepare a classified Balance Sheet as on March 31,2018Good Will3100Short-term investments2000Land10000Cash6600Equipment24000Owner's Capital34050Depreciation on Equipment5000Mortgage payable10000Investment in shares5000Notes Payable (Long-term)1300Investment in Bonds2200Notes Payable11000Inventories5100Accounts Payable2100Prepaid Insurance400Salaries payable1600Notes receivable1000Interest payable1350Accounts receivable7000Instruction: Prepare a Balance Sheet as per Schedule III.Part – IFranklin CompanyBalance Sheet for the year ended: 31 March, 2018 (Rs. In '000)ParticularsNote No.Figures for the Current Reporting Period I. EQUITY AND LIABILITIES??(1) Shareholders’ funds??(a) Share capital?34050(b) Reserves and surplus??(c) Money received against share warrants??(2) Share application money pending allotment??(3) Non-current liabilities111300(a) Long term borrowings??(b) Deferred tax liabilities (Net)??(c) Other Long term liabilities??(d) Long term provisions??(4) Current liabilities216050(a) Short term borrowings??(b) Trade payables??(c) Other current liabilities??(d) Short term provisions??TOTAL?61400II. ASSETS??(1) Non-current assets332100(a) Fixed assets??(i) Tangible assets??(ii) Intangible assets??(iii) Capital work-in‐progress??(iv) Intangible assets under development??(b) Non-current investments47200(c) Deferred tax assets (net)??(d) Long term loans and advances??(e) Other non-current assets??(2) Current assets??(a) Current investments?2000(b) Inventories?5100(c) Trade receivables?8000(d) Cash and cash equivalents?6600(e) Short term loans and advances??(f) Other current assets?400TOTAL?61400Note 1: Non Current LiabilitiesMortgage Payable?10000Notes Payable (Long-term)?1300??11300Note 2: Current LiabilitiesNotes Payable ?11000Accounts Payable?2100Salaries Payable?1600Interest Payable?1350??16050Note 3: Non-Current AssetsLand?10000Equipment (Less Depreciation)?19000Goodwill?3100??32100Note 4: Non-Current InvestmentsInvestment in Shares?5000Investment in Bonds?2200??7200Q.No. 4. From the following ledger balances of Xpress Transport Corporation, You are required to prepare a classified Balance Sheet as on March 31,2018.Cash7000Notes Payable21000Short-term investments12000Accounts Payable4600Accounts receivables8500Salaries and Wages Payable5800Notes Receivables5000Unearned service revenue1500Inventory6500Interest Payable750Prepaid Insurance500Mortgage Payable15000Investment in Stocks5000Notes Payable (Long term)4350Investment in Real Estate4500Owner's Capital35000Land15000Accumulated Depreciation in equipment3500Equipment25000Patents2500Instruction: Prepare a Balance Sheet as per Schedule III.Part – IXpress Transport CorporationBalance Sheet for the year ended: 31 March, 2018 (Rs. In '000)ParticularsNote No.Figures for the Current Reporting Period I. EQUITY AND LIABILITIES??(1) Shareholders’ funds??(a) Share capital?35000(b) Reserves and surplus??(c) Money received against share warrants??(2) Share application money pending allotment??(3) Non-current liabilities119350(a) Long term borrowings??(b) Deferred tax liabilities (Net)??(c) Other Long term liabilities??(d) Long term provisions??(4) Current liabilities233650(a) Short term borrowings??(b) Trade payables??(c) Other current liabilities??(d) Short term provisions??TOTAL?88000II. ASSETS??(1) Non-current assets??(a) Fixed assets??(i) Tangible assets336500(ii) Intangible assets?2500(iii) Capital work-in‐progress??(iv) Intangible assets under development??(b) Non-current investments49500(c) Deferred tax assets (net)??(d) Long term loans and advances??(e) Other non-current assets??(2) Current assets??(a) Current investments?12000(b) Inventories?6500(c) Trade receivables?13500(d) Cash and cash equivalents?7000(e) Short term loans and advances??(f) Other current assets?500TOTAL?88000Note 1: Non-Current LiabilitiesMortgage Payable?15000Notes Payable (Long-term)?4350??19350Note 2: Current LiabilitiesNotes Payable ?21000Accounts Payable?4600Salaries and Wages Payable?5800Interest Payable?750Unearned Service Revenue?1500??33650Note 3: Non-Current Assets - Fixed AssetsLand?15000Equipment (Less Depreciation)?21500??36500Note 4: Non-Current InvestmentsInvestment in Stocks?5000Investment in Real Estate?4500??9500Q.No. 5. These financial statement items are for Ranbaxy Pharma Co. Ltd., at year-end, March 31, 2018Notes Payable15350Accounts Receivable29250Accounts Payable25500Investment (Short Term)15000Interest Payables1500Prepaid Expenses1000Loan from Bank10000Inventories50000Loan on Mortgage20000Furniture18000Retained Earnings10000Plant and Equipment20000Capital143000Land and Building40000Cash in hand1400Freehold Land 20000Cash at Bank10700Good Will20000Instruction: Prepare a Balance Sheet as per Schedule III.Part – IRanbaxy Pharma Co. Ltd.,Balance Sheet for the year ended: 31 March, 2018 (Rs. In '000)ParticularsNote No.Figures for the Current Reporting Period I. EQUITY AND LIABILITIES??(1) Shareholders’ funds??(a) Share capital?143000(b) Reserves and surplus?10000(2) Share application money pending allotment??(3) Non-current liabilities130000(4) Current liabilities242350TOTAL?225350II. ASSETS??(1) Non-current assets??(a) Fixed assets??(i) Tangible assets398000(ii) Intangible assets?20000(2) Current assets4107350TOTAL?225350Note 1: Non-Current LiabilitiesLoan from Bank?10000Loan on Mortgage?20000??30000Note 2: Current LiabilitiesNotes Payable ?15350Accounts Payable?25500Interest Payable?1500??42350Note 3: Non-Current Assets - Fixed AssetsFurniture?18000Plant and Equipment?20000Land and Building?40000Freehold Land?20000??98000Note 4: Current AssetsCurrent investments?15000Inventories?50000Trade receivables?29250Cash and cash equivalents?12100Other current assets?1000??107350Preparation of Statement of Profit and Loss and Balance SheetQ.No 1: Cadila provides you the following trail balance as on 31st March 2017.ParticularsDebit Rs.Credit Rs.Share Capital ( 60000 shares of 10 each)?600,000Property, Plant and Equipment1,040,000?Salaries and Wages100,000?Sales?1,460,000Cost of Goods Consumed760,000?Share application money pending allotment?50,000Creditors?100,000Goodwill90,000?Debtors200,000?10% Debenture ?100,000General Reserve?50,000Discount & Interest?40,000Other Expenses80000?Cash120,000?Interest10,000?? 2,400,000 2,400,000Tax @ 30%Required:(a). Prepare a Statement of Profit and Loss(b). Prepare a Balance Sheet as on 31.3.2017Statement of P&L of Cadila for the year ending 31.3.2017Particulars Note no.Rs.Income :??Revenue from operations?1,460,000Other Income?40,000Total incomes (A)?1,500,000Expenses :??Cost of Goods Consumed?760,000Employee benefit expenses?100,000Other Expenses?80,000Depreciation??Financial Cost (interest)?10,000Total expenses (B)?950,000Profit before tax (A-B)?550,000Less: Income tax (30%)?165,000Profit after tax?385,000EPS = Profit after tax/No. of equity shares?6.416667Balance Sheet of Cadila as on 31-03-2017Particulars Note No.Rs.Equity and Liabilities:??(1) Share Holders' funds:?? (a) Share capital?600,000 (b) Reserves and Surplus?435,000Share application money?50,000(3) Non-Current liabilities:?? 10% Debentures?100,000(4) Current Liabilities?100,000 Tax Provision?165,000Total Liabilities? 1,450,000 Assets:??(1) Non-Current Assets:??(a) Tangible assets ?1,040,000(b) Intangible assets ?90000???(2) Current Assets?320,000Total Assets? 1,450,000 Q.No 2: The following is the Trial Balance of Clarion Limited as on 31.3.2018ParticularsDebit (Rs.)Credit (Rs.)Share Capital ( 25000 shares of 10 each)?250,000Property, Plant and Equipment850,000?Salaries and Wages85,000?Sales Revenue?1,250,000Cost of Goods Consumed640,000?Share application money pending allotment?25,000Short Term Borrowings?112,000Patents90,000?Trade Receivables32,000?Bank Loan for 10 Years ?80,000Other Expenses6,000?Cash7,500?Reserves and Surplus?20,000Inventories14,000?Investment in Bonds2,500?Interest10,000?? 1,737,000 1,737,000Tax @ 30%Required:(a). Prepare a Statement of Profit and Loss(b). Prepare a Balance Sheet as on 31.3.2018Statement of P&L of Clarion for the year ending 31.3.2018Particulars Note no.Rs.Income :??Revenue from operations?1,250,000Other Income?0Total incomes (A)?1,250,000Expenses :??Cost of Goods Consumed?640,000Employee benefit expenses?85,000Financial Cost (interest)?10,000Depreciation?0Other Expenses?6,000Total expenses (B)?741,000Profit before tax (A-B)?509,000Less: Income tax (30%)?152,700Profit after tax?356,300EPS = Profit after tax/No. of equity shares?14.252Balance Sheet of Clarion for the year ending 31.3.2018Particulars Note No.Rs.Equity and Liabilities:??(1) Share Holders' funds:?? (a) Share capital?250,000 (b) Reserves and Surplus?376,300Share application money?25,000(3) Non-Current liabilities:?? Bank Loan?80,000(4) Current Liabilities?112,000 Tax Provision?152,700Total Liabilities? 996,000 Assets:??(1) Non-Current Assets:??(a) Tangible assets ?850,000(b) Intangible assets ?90,000(c) Investment in Bonds?2,500(2) Current Assets?? Trade Receivables?32,000 Cash?7,500 Inventories?14000Total Assets? 996,000 Q.No 3: The following trial balance relates to Keystone Limited as on 31.3.2018ParticularsDebit Rs.Credit Rs.Revenue?377,600Material Purchases64,000?Salaries and Wages124,000?Other Expenses140,600?Finance Cost350?Investment Income?800Property94,500?Accumulated Depreciation on Property?24500Stock46,700?Trade Receivables31,150?Trade Payables?27,800Bank Overdraft?2,300Equity Shares (5000 Shares @ Rs.10 each)?50,000Retained Earnings?15600Deferred Tax Liability?2700? 501,300 501,300Tax @ 25%Required:(a). Prepare a Statement of Profit and Loss(b). Prepare a Balance Sheet as on 31.3.2018Statement of P&L of Keystone Limited for the year ending 31.3.2018Particulars Note no.Rs.Income :??Revenue from operations?377,600Other Income?800Total incomes (A)?378,400Expenses :??Cost of Goods Consumed?64,000Employee benefit expenses?124,000Financial Cost (interest)?350Other Expenses?140,600Total expenses (B)?328,950Profit before tax (A-B)?49,450Less: Income tax (30%)?14,835Profit after tax?34,615???EPS = Profit after tax/No. of equity shares?1.3846Balance Sheet of Keystone Limited for the year ending 31.3.2018Particulars Note No.Rs.Equity and Liabilities:??(1) Share Holders' funds:?? (a) Share capital?50,000 (b) Reserves and Surplus?50,215Share application money??(3) Non-Current liabilities:?? Deferred Tax Liability?2,700(4) Current Liabilities?? Trade Payables?27,800 Bank Overdraft?2,300 Tax Provision?14,835Total Liabilities? 147,850 ???Assets:??(1) Non-Current Assets:?? (a) Tangible assets(94500-24500)?70,000(2) Current Assets?? (a) Trade Receivables?31,150 (b) Inventories?46,700Total Assets? 147,850 Q.No 4: Tech Mahindra Limited?is an Indian?multinational?subsidiary of the?Mahindra Group, providing?information technology?(IT) services and?business process outsourcing?(BPO) to companies in various?vertical?and?horizontal markets.?Anand Mahindra?is the Chairman of Tech Mahindra, which is headquartered at?Pune?and has its registered office in?Mumbai. Tech Mahindra provides you the following trail balance as on 31st March 2018.ParticularsDebit Rs.Credit Rs.Share Capital: Authorised 1,00,000 shares of 10 each)?1,000,000Share Capital: Issued 40,000 shares of 10 each)?400,000Bank80,000?Salaries180,000?PF Contribution 10,000?Revenue:?? BFSI Segment?400,000 Telecom Segment?200,000 Manufacturing Segment?400,000Software development expenses100,000?Government grant for R&D?50,000Creditors?50,000Printing & Stationery 10,000?Debtors200,000?General Reserve?50,000Plant and Equipment on 1.4.201760,000?Plant and Equipment added on 1.1.201810,000?Discount & Interest?40,000P&L Account as on 1.4.2017?130,000Visa Charges30,000?Land900,000?Cash120,000?Audit Fees20,000?? 1,720,000 1,720,000ADJUSTMENTS1. Income tax rate is 30%2. Depreciate Plant & Equipment at 10% p.a.3. Dividend proposed Rs 2 per share4. Dividend Distribution Tax 16%5. Outstanding Salary Rs. 10,0006. Prepaid Audit Fees Rs. 5,000Required:(a). Prepare a Statement of Profit and Loss(b). Prepare a Balance Sheet as on 31.3.2018Statement of P&L of Tech Mahindra for the year ending 31.3.2018Particulars Note No.Rs.Sales 11,000,000Other Income290,000Total incomes (A)?1,090,000Expenses :??Software development expenses?100,000Employee benefit expenses 3200,000Other Expenses 455,000Depreciation on PPE56,250Total expenses (B)?361,250Profit before tax (A-B)?728,750Less: Income tax (30%)?218,625Profit after tax?510,125???EPS = Profit after tax/No. of equity shares?12.75Note 1 Revenue from OperationsNote 4 Other ExpensesBFSI Segment400,000Printing & Stationery 10,000Telecom Segment200,000Visa Charges30,000Manufacturing Segment400,000Audit Fees [20,000 - 5,000]15,000Total1,000,000Total55,000Note 2 Other IncomeNote 5 Dep & AmortisationGovt Grant50,000P,P&E Dep [6,000 + 250]6,250Discount & Interest40,000Total6,250Total90,000Note 3 Employee benefit expSalaries [1,80,000 + 10,000]190,000PF contribution 10,000Total200,000Balance Sheet of Tech Mahindra as on 31-03-2018Particulars Note No.Rs.Equity and Liabilities:??(1) Share Holders' funds:?? (a) Share capital6400,000 (b) Reserves and Surplus7597,325(2) Share Application Money Pending?0(3) Non-Current liabilities?218,625(4) Current Liabilities8152,800Total Liabilities? 1,368,750 Assets:??(1) Non-Current Assets:?? (a) Tangible assets Less Dep9963,750(2) Current Assets10405,000Total Assets? 1,368,750 Note 6 Share CapitalNote 9 Tangible Assets?Rs.Plant and Equipment on 1.4.201760,000Authorised1,000,000Plant and Equipment added on 1.1.201810,000Issued & Paid up400,000Less: Dep-6,250Total400,000Land900,000Note 7 Reserves & SurplusTotal963,750P&L Account as on 1.4.2017130,000Note 10 Current AssetsAdd: Current year profits510,125Bank80,000Add: Gen Reserve50,000Debtors200,000Less: Dividend Payable [2 x 40,000]-80,000Cash120,000Less: D D Tax 16%-12,800Prepaid Audit fees5,000Total597,325Total405,000Note 8 Current Liability O/s Salary10,000Income tax (Corporate tax)?Dividend Payable80,000D D Tax12,800Creditors50,000Total152,800Q.No 5: Lupin Limited is a multi-national pharmaceutical company based in Mumbai, Maharashtra, India. It is the 12th-largest company by market capitalization, and the eighth-largest generic pharmaceutical company by revenue globally. Lupin Limited provides you the following trail balance as on 31st March 2017.ParticularsDebit Rs.Credit Rs.Share Capital ( 50000 shares of 10 each)?500,000Machinery 100,000?Salaries50,000?Sales:?? Generics?400,000 Patented Drugs?700,000 Active Pharma Ingredients?3,60,000Purchases 5,00,000?Share application money pending allotment?50,000Creditors?1,00,000Printing & Stationery 30,000?Dealers commission60,000?Debtors2,00,000?10% Debenture ?1,00,000General Reserve?50,000Furniture & Fittings100,000?Stock of finished goods on 1.4.2016200,000?Discount & Interest?40,000P&L account as on 1.4.2016?1,00,000Wages 50,000?Excise duty50,000?Debenture interest paid 10,000?Vehicles9,00,000?Cash1,20,000?Audit Fees30,000?? 24,00,000 24,00,000ADJUSTMENTS1. Income tax rate is 30%2. Depreciate Vehicles by 5% and Machinery by 10% 3. Stock of finishes goods as on 31.03.2017 Rs 5,00,0004. Dividend proposed Rs 2 per share5. Dividend distribution tax 16%REQUIRED1. Statement of P/L for the year ending 31.03.20172. Balance sheet as on 31.03.2017Statement of P&L of Lupin Limited for the year ending 31.3.2017Particulars Note no.Rs.Income :??Revenue from operations1 1,460,000 Other Income?40,000Total incomes (A)?1,500,000Expenses :??Purchases?500,000Change in Stock (Rs.2,00,000 – Rs. 5,00,000)?-300,000Employee benefit expenses2100,000Depreciation355,000Financial Cost (Debenture interest)?10,000Other Expenses4170,000Total expenses (B)?535,000Profit before tax (A-B)?965,000Less: Income tax (30%)?289,500Profit after tax?675,500EPS = Profit after tax/No. of equity shares?13.51 Note 1 Sales (Rs.)?Note 3 Depreciation (Rs.)?Rs.?Rs.Generics400,000On machiery10,000Patented Drugs700,000On vehicles45,000Active Pharma Ingredients360,000Total55,000Total1,460,000Note 4 Other Expenses (Rs.)Note 2 Employee benefit expensesExcise Duty 50,000 Salaries50,000Printing30,000 Wages 50,000Audit fees30,000Total100,000Dealers commission60,000Total170,000Balance Sheet of Lupin Limited as on 31-03-2017Particulars Note No.Rs.Equity and Liabilities:??(1) Share Holders' funds:?? (a) Share capital?500,000 (b) Reserves and Surplus5709,500(2) Share application money?50,000(3) Non-Current liabilities:?? 10% Debentures?100,000(4) Current Liabilities6505,500Total Liabilities? 1,865,000 Assets:??(1) Non-Current Assets:??(a) Tangible assets 71,045,000(b) Intangible assets ?0(2) Current Assets8820,000Total Assets? 1,865,000 Note 5 Reserves & Surplus (Rs.) Note 7 Tangible assets (Rs.)P&L: Opening 100,000 Machinery less dep90,000Add: Current year675,500 Vehicles less dep855,000Add: General reserve50,000 Furniture100,000Less: Dividend proposed (50,000 x 2)-100,000Total1,045,000Less: Dividend distribution tax-16,000Total709,500 Note 8 Current Assets (Rs.) Note 6 Current Liabilities (Rs.)Cash 120,000Tax Provision289,500Debtors200,000Creditors100,000Closing stock500,000Dividend proposed100,000Total820,000Dividend distribution tax16,000Total505,500Q.No 6: The?Godrej Group?is an Indian?conglomerate?headquartered in?Mumbai, Maharashtra, India, managed and largely owned by the?Godrej family. It was founded in 1897, and operates in sectors as diverse as real estate, consumer products, industrial engineering, appliances, furniture, security and agricultural products.?Subsidiaries and affiliated companies include?Godrej Industries?and its subsidiaries?Godrej Consumer Products,?Godrej Agrovet, and?Godrej Properties, as well as the private holding company?Godrej & Boyce?Mfg. Co. Ltd. Its trial balance as on 31.3.2018 is provided below:Trial Balance as on 31.03.2018Debit BalancesRs.Credit BalancesRs.Stock on 1.4.2017 75,000 Equity Capital (Rs.10 Each) 100,000 Purchases 245,000 Purchase returns 10,000 Wages 30,000 Discount 3,000 Carriage 950 Profit and Loss account 15,000 Furniture 17,000 Creditors 17,500 Salaries 7,500 Sales 340,000 Rent 4,000 General Reserve 15,500 Sundry Trade Expenses 7,050 Bills payable 7,000 Debtors 27,500 Plant and Machinery 29,000 Cash at Bank 55,200 Patents 4,800 Bills Receivable 5,000 Total 508,000 Total 508,000 Adjustments:1) Stock as on 31st March 2018 Rs.88,0002) Provide for Corporate Tax at 30%3) Depreciation Plant and Machinery at 15%, Furniture at 10% and Patents at 5%4) On 31st March 2018 outstanding rent amounted to Rs.800 and salaries Rs.9005) The Board recommends payment of a dividend Rs 2 per share, Corporate dividend tax rate is 17%Required:(a) Statement of Profit and Loss for the year ending 31.3.2018(b) Balance Sheet as on 31.3.2018Statement of P&L of Godrej Industries for the year ending 31.3.2018Particulars Note No.Rs.Sales ?340,000Other Income?3,000Total incomes (A)?343,000Expenses :??Cost of Goods Consumed1222,000Employee benefit expenses 238,400Depreciation 36,290Other Expenses 412,800Total expenses (B)?279,490Profit before tax (A-B)?63,510Less: Income tax (30%)?19,053Profit after tax?44,457???EPS = Profit after tax/No. of equity shares?4.45Note 1 Cost of Goods Consumed (Rs.)Note 3 Depreciation (Rs.)Opening Stock75000Plant and Machinery4350Purchases245000Furniture1700Less: Purchase returns-10000Patents240Less: Closing Stock-88000Total6290Total222000Note 4 Other ExpensesNote 2 Employee benefit expenses (Rs.)Carriage950Wages30000Sundry Trade Expenses7050Salaries (Add Outstanding’s)8400Rent (Add Outstanding’s)4800Total38400Total12800Balance Sheet of Godrej Industries as on 31-03-2018Particulars Note No.Rs.Equity and Liabilities:??(1) Share Holders' funds:?? (a) Share capital?100,000 (b) Reserves and Surplus551,557(3) Non-Current liabilities?0(4) Current Liabilities668,653Total Liabilities? 220,210 Assets:??(1) Non-Current Assets:??(a) Tangible assets Less Dep739,950(b) Intangible assets 84,560(2) Current Assets9175,700Total Assets? 220,210 Note 5 Reserves & SurplusNote 7 Tangible AssetsP&L Account as on 1.4.201715,000Plant and Machinery24,650Add: Current year’s profits44,457Furniture15,300Add: Gen Reserve15,500Total39,950Less: Dividend Payable [2 x 10,000]-20,000Note 8 Intangible AssetsLess: D D Tax 17%-3,400Patents4,800Total51,557Less: Amortisation-240Note 6 Current Liability Total4,560O/s Salary900Note 9 Current AssetsO/s Rent800Debtors 27,500 Income tax (Corporate tax)19,053Cash at Bank 55,200 Dividend Payable20,000Stock 88,000 D D Tax3,400Bills Receivable 5,000 Creditors17,500Total 175,700 Bills payable7,000Total68,653Q.No 7: TVS Motor Company?(T.V.S) is a multinational motorcycle company headquartered at?Chennai. It is the third largest motorcycle company in India. The company has an annual sale of 3 million units and an annual capacity of over 4 million vehicles. TVS Motor Company is also the 2nd largest exporter in India with exports to over 60 Countries.?It was the first Indian company to deploy a catalytic converter in a 100 cc motorcycle and the first to indigenously produce a four stroke 150cc motorcycle. Its trial balance as on 31.3.2018 is provided below:Trial Balance as on 31.03.2018Debit BalancesRs.Credit BalancesRs.Land at Cost 100,000 Equity Capital (Rs.10 Each)150,000 Plant at Cost400,000 10% Debentures50,000 Stock of finished goods on 1.4.201790,000 Reserve Fund40,000 Debtors145,000 P&L Account70,000 Purchases170,000 Sales?Investments @ 9% on 1.4.2017100,000 Aerospace200,000 Operating Expenses40,000 Automobiles190,000 Interest on Debentures5,000 Railways120,000 Interim Dividend30,000 Off-Highway70,000 Patents100,000 Vehicle Aftermarket110,000 Marketing Expenses10,000 Creditors40,000 ??Depreciation Provision - Plant100,000 ??Discount & Commission Received50,000 Total1,190,000 Total1,190,000 Adjustments:1) Closing Stock of finished goods Rs.80,0002) Outstanding Marketing Expenses Rs.5,0003) Corporate Tax 30%4) Depreciation on Plant and Machinery 10% per annum on original cost5) Amortise patents by 20%6) Directors Proposed Rs.2 per share as dividend7) Dividend distribution tax at 17.65%Required:(a) Statement of Profit and Loss for the year ending 31.3.2018(b) Balance Sheet as on 31.3.2018Statement of P&L of TVS Motor Company for the year ending 31.3.2018Particulars Note No.Rs.Income :??Revenue from operations1690,000Other Income259,000Total incomes (A)?749,000Expenses :??Purchases?170,000Change in stock (Rs.90,000 – Rs.80,000)?10,000Other Expenses355,000Finance Cost?5,000Depreciation & Amortisation460,000Total expenses (B)?300,000Profit before tax (A-B)?449,000Less: Income tax (30%)?134,700Profit after tax = PAT?314,300???EPS = PAT/No. of equity shares?Rs. 20.95/Share Note 1 Sales (Rs.) Note 3 Other Exp (Rs.)Aerospace200,000 Operating expenses40,000Automobiles190,000 Marketing expenses + O/S15,000Railways120,000Total55,000Off-Highway70,000Note 4 Depreciation & Amortisation Vehicle Aftermarket110,000?Rs.Total690,000Dep on P&M40,000Note 2 Other Income?Patents amortised 20,000Discount & Commission50,000Total60,000Int on Investment accrued9,000Total59,000Balance Sheet of TVS Motor Company as on 31-03-2018Particulars Note No.Rs.Equity and Liabilities:??(1) Share Holders' funds:?? (a) Share capital?150,000 (b) Reserves and Surplus5353,710(3) Non-Current liabilities:?? 10% Debentures?50,000(4) Current Liabilities 6220,290Total Liabilities? 774,000 Assets:??(1) Non-Current Assets:??(a) Tangible assets 7360,000(b) Intangible assets = Patents?80,000(c) Investments ?100,000(2) Current Assets8234,000Total Assets? 774,000 Note 5 Reserves & Surplus (Rs.) Note 6 Current Liabilities (Rs.)P&L: Opening 70,000Tax Provision134,700Add: Current year314,300Creditors40,000Add: General reserve40,000Dividend proposed30,000Less: Interim Dividend-30,000Dividend distribution tax10,590Less: Dividend proposed (15,000 x 2)-30,000O/S Marketing exp5,000Less: Dividend distribution tax-10,590Total220,290Total353,710 Note 7 Tangible assets (Rs.) Note 8 Current Assets (Rs.)P&M [4,00,000-1,00,000-40,000]260,000Int Accrued9,000Land100,000Debtors145,000Total360,000Closing stock80,000Total234,000 ................
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