Accountancy, asked by Gunpreet7943, 1 year ago

Easy problem of final account

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Answered by mythili8
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Problem 2:

The authorised capital of Inter-State Distributors Ltd. is Rs 7, 50,000 consisting of 3,000 6% cumulative preference shares of Rs 100 each.

The following is the trial balance drawn up on 31st December 2004:



(a) The value of stock on 31st December 2004 was Rs 2, 15,000.

(b) Depreciation on freehold properties is to be provided at 2½ A% and on furniture at 6%.

(c) The directors propose to pay the second half year’s dividend on preference shares and a 10% dividend on equity shares.

(d) Shares have been forfeited on non-payment of Rs. 35 per share. You are required to prepare final accounts of the company.

Solution:





 
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