Olympiad Ltd. has an opening debit balance of Rs. 5,00,000 in Reserves and Surplus as Balance of Statement of Profit & Loss. It earned a profit of Rs. 8,00,000 for the year ended 31st March, 2017. How would you show these items in the Balance Sheet and notes to accounts ?

Q.

Galaxy Ltd. has the following balances on 1st April, 2016 :

Rs.

General Reserve 4,50,000

Statement of Profit & Loss 2,00,000

During the year ended 31st March, 2017, it incurred a loss of Rs. 3,20,000. How would you show these items in the Balance Sheet and notes to accounts ?

Q.

Kotak Ltd. has the following balance on 1st April, 2016:

Rs.

Statement of Profit & Loss (2,00,000)

Debenture Redemption Reserve 6,00,000

Capital Reserve 5,00,000

It earned a profit of Rs. 10,00,000 for the year ended 31st March, 2017. It decided to transfer Rs. 2,00,000 to Debenture Redemption Reserve and Rs. 3,00,000 to General Reserve. Directors proposed a final dividend of Rs. 1,20,000.

Show how these items will appear in the Balance Sheet and notes to accounts.

Q. A merchant has earned a Net Profit of ₹ 57,200 for the year ended 31st March, 2017. Other balances in his Ledger are as under:-

Dr. Balances			(₹)	Cr. Balances	(₹)
Cash at Bank			4,800	Bills Payable	3,200
Cash in Hand			1,200	Creditors	61,300
Furniture and Fixtures			7,500	Loan	50,000
Debtors			80,100	Capital	3,32,300
Closing Stock			70,000
Motor Car			40,000
Building			1,50,000
Plant and Machinery			1,20,000
Bills Receivable			4,400
Investments			20,000
Drawings			6,000

Prepare his Balance Sheet as at 31st March, 2017.

Q. The Trial Balance shows the following balances as at 31st March, 2017:-

Dr. Balances		(₹)	Cr. Balances	(₹)
Purchases		60,000	Capital	1,13,075
Sales Returns		1,500	Sales	1,27,000
Plant and Machinery		90,000	Purchases Returns	1,275
Opening Stock		40,000	Discount Received	800
Discount Allowed		350	Sundry Creditors	20,000
Bank Charges		100	Bills Payable	5,000
Sundry Debtors		45,000
Salaries		7,000
Wages		10,000
Freight : In		1,000
Freight : Out		1,200
Rent, Rates and Taxes		2,000
Advertisements		2,000
Cash at Bank		7,000
		2,67,150		2,67,150

Closing Stock was valued at ₹ 35,000. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date.

Q. From the following Trial Balance prepare Trading and Profit & Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date:-

	Dr. (₹)	Cr. (₹)
Stock 1st April, 2016	22,300
Purchases and Purchase Return	2,30,000	5,200
Freehold Premises	1,00,000
Incidental Trade Exp.	11,200
Insurance	1,850
Audit Fees	800
Commission Received		2,700
Interest		1,400
Debtors and Creditors	32,400	24,830
Wages	30,200
Salaries	15,200
Capital		1,50,000
Drawings	12,000
Income-Tax	3,600
Investments	8,000
Discount allowed & received	7,500	4,200
Sales Return & Sales	6,400	3,17,400
B/R	5,200
Office Furniture	9,000
Rent		2,600
Cash in hand	5,080
Bank Balance	7,600
	5,08,330	5,08,330

Adjustment:-
1. Stock at 31st March 2017 is ₹ 70,000.
2. Write of 5% Depreciation on Freehold Premises and 20% on office furniture.
3. Commission earned but not received ₹ 500.
4. Interest earned ₹ 600.
5. ₹ 200 for rent have been received in advance.
6. Charge interest on Capital @ 6% and ₹ 500 on Drawings.