Fin621 Assignment No. 1 Spring April 2012

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Fin621 VU Current Assignment No. 1 Spring 2012 Solution coming soonLast Date:- April 25, 2012 At 11:59 PM (Mid-Night)
Required solution

At June 30, 2011 the Trial Balance of Goods Manufacturing Ltd. showed the following balances:

Particulars Debit (Rs.) Credit (Rs.)
100,000 8% Preference shares 500,000
2,500,000 ordinary shares 25,000,000
Land at cost 460,000
Factory building (Cost Rs. 11,500,000) 4,600,000
Plant & Machinery (Cost Rs. 55,000,000) 16,500,000
Office Furniture & Fittings (Cost Rs. 875,000) 262,500
Capital work in progress 16,000,000
Raw Materials -July 1, 20101, 800,000
Finished goods – July 1, 20101, 250,000
Work in process – July 1, 2010 625,000
Sundry debtors 1,837,500
Long term loans 7,500,000
Shares in subsidiary company 15,000 Ordinary shares a cost 750,000
Unquoted investments at cost 250,000
Dividends on investments:
Quoted 37,500
Unquoted
35,000
Dividends on shares in subsidiary 90,000
General reserve 5,000,000

Quoted investments at cost-market value at 30/06/2011Rs.625,000 175,000
Profit and loss account on July 1, 2010 1,875,000
Sundry creditors 1,632,775
Purchases & Sales 35,295,070 48,150,110
Other Assets 1,786,817
Carriage inwards 417,530
Wages and benefits 3,183,124
Rates and taxes factory 110,000
Repairs to buildings 75,088
Salaries 487,833
Postage and telephone 117,723
Printing and stationary 37,500
Legal and professional 105,250
Sundry trade expenses 872,149
Bank charges 17,561
Interest on long term loans 1,162,500
Commissions 890,110
Heat and lighting 799,324
Insurance:
Factory 18,925
Offices 6,075
Repairs to plant 157,806
Preference shares dividends half year to December 31,2010 20,000
Current maturity of long term loans 250,000
Total 90,070,385 90,070,385

Other information:
1. Stocks at June 30, 2011 included raw material Rs. 1,525,100; W.I.P Rs. 325,000;& finished goods Rs. 3,037,560
2. Accrued charges are to be provided as follows:
Heat and lighting, 70,353, commission, 175,000 Audit fee, 35,000
3. Provision of Rs. 235,000 is to be made against doubtful debts.
4. Factory insurance totaling Rs. 3,650 and rates amounting to Rs. 6,500 had been paid for six months to September 30, 2011.
5. Depreciation is to be provided on plant and machinery, factory building and office furniture and fittings at the rates of 20%, 5%, and 10% respectively on book values.
6. The directors recommended the dividend for the half year ended June 30, 2011 on preference shares and dividend of 7% on ordinary shares be paid.
7. Provision for income tax is to be made at the rate of 35%. Ignore tax on dividend paid.
8. Authorized Share Capital of the company includes 500,000 8% Preference shares of Rs. 50 each and 5,000,000 Ordinary Shares of Rs. 10 each.

Requirement:
You are required to prepare profit and loss account for the year ended June 30, 2011.