Question

1. Prepare Statement of Profit & Loss and Calculate net amount of profit & loss to be shown in Balance
Sheet under the heading 'Reserve and Surplus' of Cloth Company Asia Traders Limited for the year
ending 31st March, 2014. Particulars are as under:
Building 3,00,000; Machinery 73,30,000; Interim Dividend * 37,500; Inventories (1st April, 2013)
75,000; Furniture & Fixtures 37,200; Trade Receivables 7 87,000; Purchases * 1,85,000; Prelimi-
nary Expenses * 5,000; Wages 84,865; General Expenses * 16,835; Rail and Carriage * 13,115;
Salary 14,500; Directors' Fees 5,725; Bad debts 2,110; Interest on debentures 9,000; Statement
of Profit & Loss (Surplus) 14,500; Sales 4,15,000. Bad debts provision (on 1st April, 2013) *3,500;
12% Debentures * 1,50,000,
Adjustments :
(i) Closing Inventories was valued at 1,95,000. (ii) Provide depreciation at 5% on Building, 25% on
Machinery and 10% on Furnitures and Fixtures. (iii) Preliminary expenses are to be written by 500.
(iv) Interest on Debentures is payable for half year. (v) Provide 5% on trade receivables for doubtful
debts. (vi) Provide 37,000 for taxation.​

Answer 1

Explanation:

show me a full solution of this question

Answer 2

Answer:

for the period profit 71460net profit transfer to balance sheet 43960