Q1) Compulsory Question (Based on Book-Keeping)
i). Trial Balance of a company Mangrove Ltd. for the financial year 2020-21 is shown in the table below. Prepare a Profit and Loss Account for the year ending March, 2021. (12 Marks)| Credit Balance | Amount(INR) |
| Equity share capital | 8,00,000 |
| Preference share capital | 4,00,000 |
| 10% debentures (Issues on 1st April, 2020) | 4,00,000 |
| Sales | 40.00,000 |
| Bank Overdraft | 8,00,000 |
| Total | 64,00,000 |
| Debit Balance | Amount(INR) |
| Land | 26,96,000 |
| Plant & Machinery | 6,40,000 |
| Depreciation on Plant and Machinery | 64,000 |
| Purchases (adjusted) | 16,00,000 |
| Closing Stock P | 6,00,000 |
| Wages | 4,80,000 |
| Salaries | 3,20,000 |
| Total | 64,00,000 |
1 i) Profit & Loss Account of Mangrove Ltd. as at 31st March 2021
| Particulars | Amount (INR) |
| Income | |
| Revenue from operations (Sales) | 40,00,000 |
| Total | 40,00,000 |
| Expenses | |
| Cost of materials consumed(Adjusted purchase) | 16,00,000 |
| Employee Benefit Expenses | |
| Wages - 4,80,000 | |
| Salaries - 3,20,000 | |
| Total - 8,00,000 | 8,00,000 |
| Depreciation and Amortisation | 64,000 |
| Finance Cost (interest @ 10% on debentures) | 40,000 |
| Total | 25,04,000 |
| Profit before Tax (Income minus Expenses) | 14,96,000 |
1 ii) Net Worth of the company = Total Assets - Total Liabilities Total Assets = Land + Plant & Machinery + Closing Stock
= 26,96,000+ 6,40,000 + 6,00,000
= 39,36,000
Total Liabilities
Overdraft=Equity Shares Capital + Preference Share Capital + Debentures + Bank
= 8,00,000 +4,00,000 +4,00,000 +8,00,000 = 24,00,000
So, Net Worth of the company = 39,36,000-24,00,000
=15,36,000
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