Question 55 Chapter 1 VK Publications Class 12 Part 2

Question 55 Chapter 1 VK Publications Class 12 Part 2 – 2021

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The solution of Question 55 Chapter 1 VK Publications Class 12 Part 2: –

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

55. Unique Solutions Ltd. is a company with an authorised capital of Rs. 5,00,000 divided into 5,000 equity shares of Rs. 100 each. 2,500 shares were issued and subscribed on 31st March,2018.
The following are the balances extracted from the books of the company as on 31st March, 2018

Particulars	Rs.	Particulars	Rs.
Inventories	50,000	Advertisement Expenses	3,800
Revenue from Operation	4,25,000	Bonus to Employees	10,500
Cost of Materials Consumed	3,00,000	Trade Receivable	38,700
Wages (product)	70,000	Trade Payable	35,200
Discount Allowed	4,200	Plant and machinery	80,500
Discount Received	3,150	Furniture	17,100
Insurance Paid	6,720	Cash at Bank	1,34,700
Salaries	18,500	General Reserve	25,000
Rent	6,000	Loan from managing board	15,700
General Expenses	8,950	Bad debts	3,200
Surplus ,i.e., Balance in statement of profit and loss (CR.)	6,220	Calls-in-Arrears	5,000
Printing and stationary	2,400

You are required to prepare Statement of Profit and Loss for the year ended 31st March,2018 and the Balance Sheet as at that date of the company The following furtherinformation is given:
(1) Closing inventories, Rs. 91,500
(2) Depreciation to be charged on plant and machinery and furniture at 15%and 10% respectively.
(3) Outstanding liabilities:wages Rs. 5,200, salary Rs. 1,200 and rent Rs. 600.
(4) Proposed Dividend for previous year were @5% on paid up share capital. The company proposed a dividend @4 % on paid upcapital for the current year.
(5) Prepaid Insurance Rs. 1,680.

The solution of Question 55 Chapter 1 VK Publications Class 12 Part 2: –

Statement of Profit and Loss of Unique Solutions Co. Ltd. for the year ended 31st March, 2018

Particulars	Note No.	Current Year Rs.	Previous Year Rs.
I. Revenue from Operations (Sales)		4,25,000
II. Other Incomes	1	3,150
III. Total Revenue ( I+II)		4,28,150

IV. Expenses:
Cost of Material consumed		3,00,000
Change in Inventories		41,500
Employee Benefit Expenses	2	1,05,400
Depreciation and Amortization Expenses		13,785
Other Expenses	3	34,190
		4,11,875

V. Profit for the year (III- IV)		16,275

Balance sheet of Unique Solutions Co. Ltd. for the year ended 31st March, 2018

Particulars	Note No.	Current Year Rs.	Previous Year Rs.
I. EQUITY AND LIABILITIES		4,25,000
1.Shareholders’ Funds
(a) Share Capitals	4
(b) Reserves and Surplus	5	3,00,000
2. Current Liabilities		41,500
(a) Short-term Borrowings	6	1,05,400
(b) Trade Payables	7	13,785
(c) Other Current Liabilities	8	34,190
Total		3,50,395

II. ASSETS
1. Non-current Assets
(a)Fixed Assets
(i) Tangible Assets	9	83,815
2. Current Assets
(a) Inventories	10	91,500
(b) Trade Receivables		38,700
(c) Trade Payables	11	1,34,700
(d) Other Current Liabilities	12	1,680

Total		3,50,395

Notes to Accounts:

Particulars			Rs.
1. Other income
Discount received			3,150

2. Employees Benefit Expenses
Wages [70,000+5,200 (outstanding wages)]		75,200
Salaries [18,500+1,200 (outstanding salaries)]		19,700
Bonus to Employees		10,500	1,05,400

3. Other Expenses
Discount allowed		4,200
Insurance [6,720-1,680 (prepaid)]		5,040
Rent [16,000+600 (outstanding)]		6,600
General expenses		8,950
Printing and Stationery		2,400
Advertisement Expenses		3,800
Bad debts		3,200	34,190

4. Share Capital
Authorized Share Capital (5,000 Equity shares of Rs. 100 each)			5,00,000
2,500 Equity shares of Rs. 100 each		2,50,000
Less: Calls-in-Arrears		5,000	2,45,000

5. Reserves and Surplus:
General Reserve		25,000
Balance of Statement of Profit and Loss		6,220
Add. Profit for the year		16,275
Less Appropriations [Proposed Dividend of previous year (5% of 2,45,000)]		12,250	35,245

6. Short-term Borrowings:
Loan from Managing Director			15,700

7. Trade Payables:
Creditors			35,200

8. Other Current Liabilities:
Outstanding Wages.		5,200
Outstanding Salaries		1,200
Outstanding Rent		600
Dividend Payable		12,250	19,250

9. Tangible Assets:
Plant and Machinery	80,500
Less: Depreciation on Plant & Machinery	12,075	68,425
Furniture	17,100
Less: Depreciation on Furniture	1,710	15,390	83,815

10. Inventories:
Stock			91,500

11. Cash and Cash Equivalents
Cash at Bank			1,34,700

12. Other Current Assets:
Prepaid Insurance			1,680

13. Proposed dividend for the current year for the year ended 31st March, 2018 is Rs. 9,800