Question 2: The following is the trial balance of Multi Tech Limited as at December 31, 2006. Paid-up share capital Share premium Net income January 1, 2006 10,00,000 5,00,000 7,00,000 10% Debentures payable 2010 6,00,000 Plant and assets 39,00,000 Accumulated Depreciation 4,60,000 Merchandise inventory 8,80,000 Accounts receivable Accounts payable Purchases and sales Administrative salaries 4,20,000 3,60,000 36,50,000 65,40,000 5,00,000 Sales salaries 70,000 Directors remuneration 1,60,000 Advertising expenses 2,80,000 Carriage outwards 1,00,000 Utility expenses 3,00,000 Bank overdraft 1,00,000 1,02,60,000 1,02,60,000 Additional Informaton: a. The paid-up share capital consists of 100,000 shares of Rs. 10 each. b. Merchandise inventory at December 31, 2006 was Rs. 500,000. c. Estimated tax on the profit of the company for the year is Rs. 1,50,000. The directors have proposed final dividend of 10% on the ordinary share capital. d. Depreciation is provided at 10 percent per annum on plant and assets. Allowance for bad debts is to be maintained at 5% of the accounts receivable Required a. Income statement of the year ended December 31, 2006. b. Statement of retained earnings. c. Balance sheet as at December 31, 2006. II
Question 2: The following is the trial balance of Multi Tech Limited as at December 31, 2006. Paid-up share capital Share premium Net income January 1, 2006 10,00,000 5,00,000 7,00,000 10% Debentures payable 2010 6,00,000 Plant and assets 39,00,000 Accumulated Depreciation 4,60,000 Merchandise inventory 8,80,000 Accounts receivable Accounts payable Purchases and sales Administrative salaries 4,20,000 3,60,000 36,50,000 65,40,000 5,00,000 Sales salaries 70,000 Directors remuneration 1,60,000 Advertising expenses 2,80,000 Carriage outwards 1,00,000 Utility expenses 3,00,000 Bank overdraft 1,00,000 1,02,60,000 1,02,60,000 Additional Informaton: a. The paid-up share capital consists of 100,000 shares of Rs. 10 each. b. Merchandise inventory at December 31, 2006 was Rs. 500,000. c. Estimated tax on the profit of the company for the year is Rs. 1,50,000. The directors have proposed final dividend of 10% on the ordinary share capital. d. Depreciation is provided at 10 percent per annum on plant and assets. Allowance for bad debts is to be maintained at 5% of the accounts receivable Required a. Income statement of the year ended December 31, 2006. b. Statement of retained earnings. c. Balance sheet as at December 31, 2006. II
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Question 2:
The following is the
Paid-up share capital
10,00,000
5,00,000
Share premium
Net income January 1, 2006
10% Debentures payable 2010
7,00,000
6,00,000
Piant and assets
39,00,000
Merchandise inventory
4,60,000
8,80,000
Accounts receivable
Accounts payable
4,20,000
3,60,000
Purchases and sales
36,50,000
65,40,000
5,00,000
70,000
Administrative salaries
Sales salaries
Directors remuneration
Advertising expenses
Carriage outwards
Utility expenses
1,60,000
2,80,000
1,00,000
3,00,000
Bank overdraft
1,00,000
1,02,60,000 1,02,60,000
Additional Information:
The paid-up share capital consists of 100,000 shares of Rs. 10 each.
Merchandise inventory at December 31, 2006 was Rs. 500,000.
Estimated tax on the profit of the company for the year is Rs. 1,50,000. The directors
a.
b.
have proposed final dividend of 10% on the ordinary share capital.
d. Depreciation is provided at 10 percent per annum on plant and assets. Allowance for
Required
a. Income statement of the year ended December 31, 2006.
b. Statement of retained earnings.
c
![4G 46. 1:46 0
19
Company - FS -..
Questlon 2:
The following is the trial balance of Multi Tech Limited as at December 31, 2006.
Paid-up share capital
Share premium
Net income January 1, 2006
10,00,000
5,00,000
7,00,000
10% Debentures payable 2010
6,00,000
Plant and assets
39,00,000
Accumulated Depreciation
Merchandise inventory
4,60,000
8,80,000
Accounts receivable
4,20,000
Accounts payable
3,60,000
Purchases and sales
36,50,000
65,40,000
Administrative salaries
5,00,000
Sales salaries
70,000
Directors remuneration
1,60,000
Advertising expenses
2,80,000
Carriage outwards
1,00,000
Utility expenses
3,00,000
Bank overdraft
1,00,000
1,02,60,000 1,02,60,000
Additional Information:
a.
The paid-up share capital consists of 100,000 shares of Rs. 10 each.
Merchandise inventory at December 31, 2006 was Rs. 500,000.
Estimated tax on the profit of the company for the year is Rs. 1,50,000. The directors
have proposed final dividend of 10% on the ordinary share capital.
d. Depreciation is provided at 10 percent per annum on plant and assets. Allowance for
b.
C.
bad debts is to be maintained at 5% of the accounts receivable
Required
a. Income statement of the year ended December 31, 2006.
b. Statement of retained earnings.
c. Balance sheet as at December 31, 2006.
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Transcribed Image Text:4G 46. 1:46 0
19
Company - FS -..
Questlon 2:
The following is the trial balance of Multi Tech Limited as at December 31, 2006.
Paid-up share capital
Share premium
Net income January 1, 2006
10,00,000
5,00,000
7,00,000
10% Debentures payable 2010
6,00,000
Plant and assets
39,00,000
Accumulated Depreciation
Merchandise inventory
4,60,000
8,80,000
Accounts receivable
4,20,000
Accounts payable
3,60,000
Purchases and sales
36,50,000
65,40,000
Administrative salaries
5,00,000
Sales salaries
70,000
Directors remuneration
1,60,000
Advertising expenses
2,80,000
Carriage outwards
1,00,000
Utility expenses
3,00,000
Bank overdraft
1,00,000
1,02,60,000 1,02,60,000
Additional Information:
a.
The paid-up share capital consists of 100,000 shares of Rs. 10 each.
Merchandise inventory at December 31, 2006 was Rs. 500,000.
Estimated tax on the profit of the company for the year is Rs. 1,50,000. The directors
have proposed final dividend of 10% on the ordinary share capital.
d. Depreciation is provided at 10 percent per annum on plant and assets. Allowance for
b.
C.
bad debts is to be maintained at 5% of the accounts receivable
Required
a. Income statement of the year ended December 31, 2006.
b. Statement of retained earnings.
c. Balance sheet as at December 31, 2006.
(]
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