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Accountancy And Financial Management (FA)
Semester III
Chapter II: Introduction to Company Account
Problem No. 1
Following is the extract of the Trial Balance of M Ltd. as on 31st March, 2025:
Particulars ₹
Sales 2,40,00,000
Opening Stock of Raw Material 20,00,000
Opening Stock of Finished Goods 10,00,000
Purchase of Raw Materials 54,00,000
Purchase Returns 4,00,000
Sales Returns 40,00,000
Dividend Received 10,00,000
Sundry Income 8,00,000
Freight on Raw Material 60,000
Salaries and Wages 8,00,000
Bonus to Employees 1,60,000
Directors Remuneration 16,00,000
Depreciation on:
Plant and Machinery 10,00,000
Furniture and Fixture 6,00,000
Motor Vehicle 2,00,000
Interest on Loan from Bank of India 14,00,000
Repairs and Maintenance Expenses 1,60,000
Insurance Premium of Office 60,000
Premises
Electricity Charges 80,000
Rent, Rates and Taxes 40,000
Audit Fees 1,00,000
Advertisement Expenses 2,40,000
Sundry Expenses 20,000
Additional Information:
(a) Closing Stock of Raw Material and Finished Goods was 10,00,000 and 12,00,000
respectively
(b) Outstanding Salaries and Wages were ₹ 1,00,000.
(c) Sundry income receivable was 50,000.
(d) ₹50,000 to be provided for Bad and Doubtful Debts.
(e) Prepaid Advertisement expenses were 40,000.
(f) Make a provision for Income Tax of ₹ 4,00,000.
(g) Raw materials worth 30,000 destroyed by fire. Goods were not insured.
Prepare statement of Profit and Loss for the year ended 31 st March 2025 as per the
provisions of companies Act.
Problem No. 2
Following is the extract of Balances of Ameya Ltd. as on 31st March, 2025.
Particulars ₹
Sales 1,20,00,000
Opening Stock of Raw Material 10,00,000
Opening Stock of Finished Goods 5,00,000
Purchase of Raw Material 27,00,000
Purchase Returns 2,00,000
Sales Returns 20,00,000
Interest received on Fixed Deposits 5,00,000
Miscellaneous Income 4,00,000
Freight on Raw Material 30,000
Salaries and Wages 4,00,000
Bonus to Employees 80,000
Directors Remuneration 8,00,000
Depreciation on:
Land and Building 5,00,000
Plant and Machinery 3,00,000
Furniture 1,00,000
Interest paid on Debentures 5,00,000
Interest on Loan from Bank of Baroda 2,00,000
Repairs and Maintenance Expenses 80,000
Insurance Premium of Office 30,000
Premises
Electricity Charges 40,000
Rent, Rates and Taxes 20,000
Audit Fees 50,000
Advertisement Expenses 1,20,000
Sundry Expenses 40,000
Additional Information:
(a) Closing Stock of Raw Material and Finished Goods was₹ 5,00,000 and 6,00,000
respective
(c) Miscellaneous income receivable was 10,000.
(b) Outstanding Electricity charges and Rent, Rates & Taxes were 10,000 and 30,000
respective
(d) 50,000 to be provided for Bad and Doubtful Debts.
(e) Prepaid Advertisement expenses were 20,000.
(f) Make a provision for Income Tax of 2,00,000.
Prepare statement of Profit and Loss for the year ended 31st March, 2025 as per the
provisions of the Companies Act.
Problem No 3
From the following ledger balances of Sunshine Co. Ltd., prepare the Balance Sheet of
the company as on 31st March 2025 as per Schedule III of the Companies Act.
Particulars ₹ Particulars ₹
Equity Share capital 26,00,000 Advances to Employees 1,50,000
General Reserves 30,000 Discount on issue of Debentures 12,500
(unwritten off)
12% Debenture 7,00,000 Tools and Equipment 3,75,000
Land & Buildings 15,54,970 Debtors 1,38,520
Goodwill 10,00,000 Cash at Bank 1,57,160
Bank Overdraft 2,45,100 Stores & Spares 1,77,800
Provision for Tax 82,000 Profit & Loss A/c (Credit) 21,490
Prepaid Insurance 25,000 Bills Receivable 44,600
Mutual Fund Investments 1,68,000 Sundry Creditors 92,560
Interest payable 32,400
Problem No 4
Following is the Trial Balance of EKKY Ltd. as on 31st March, 2025:
Debit Balance ₹ Credit Balance ₹
Stock (at cost) 5,00,000 Share Capital (Equity shares of 20,00,000
100 each)
Fixed Assets (Net block) 12,35,000 General Reserve 70,000
Sundry Debtors (unsecured & 4,00,000 Loan from State-Financial Corp. 3,00,000
good)
Staff Advance 97,400 Provision for Taxation 11,000
Cash on hand 60,000 Net Profit for the year 2,70,000
Bank balance 4,94,000 Profit and Loss A/c (Opening 1,00,000
balance)
Share Issue Expenses 26,600 Short Term Loans 50,000
Bills Receivable - Trade 58,000 Sundry Creditors 1,40,000
Investments (at cost) 75,000 Unclaimed Dividend 5,000
29,46,000 29,46,000
Additional Information:
1. Transfer to General Reserve 50,000.
2. Directors recommended 6% dividend.
3. Out of debtors, debts due for more than six months were 52,000.
4. Sundry Creditors included creditors for goods ₹1,05,000 while the remaining are for
expenses.
5. Loan from state financial corporation is secured against stock.
6. Market value of investments is ₹78,000 while its face value is ₹60,000.
7. Ignore previous year's figures and corporate dividend tax.
Prepare Balance Sheet as on 31st March, 2025 as per legal requirements, after
considering the above adjustments.
Problem No 5
The following is the trial balance of Rahul Ltd. as on March 31, 2025:
Particulars Debit (₹) Credit (₹)
Stock 1,25,000
Purchase and Sales 3,45,000 4,00,000
Wages 50,000
Discount 7,000 5,000
Salaries 7,500
Rent 4,950
General Expenses 17,050
Surplus Account 15,030
Interim Dividend Paid 9,000
Equity Share Capital: 10,000 Shares 1,00,000
of 10 each
Debtors and Creditors 37,500 17,500
Machinery 29,000
Cash at Bank 16,200
General Reserve 1,15,500
Bad Debts 4,830
Total 6,53,030 6,53,030
Additional Information:
(a) Stock on 31st March, 2025 is valued at 3,00,000.
(b) Purchases include₹ 5,000 machinery purchased on 1-10-2024.
(c) On 31-3-2025 goods worth 30,000 were sold to a customer. He has taken away the
goods. But no entry is recorded.
(d) Directors proposed 10% final dividend (excluding the interim dividend already paid).
(e) Provide Income Tax for the year ₹ 30,000.
(f) Transfer 20,000 to General Reserve.
Prepare Statement of Profit and Loss and Balance Sheet in vertical format along with
notes to accounts after taking into account the above information.
