Q3.CASE STUDY: SANJAY INDUSTRIES LTD. (Balance Sheet and Income Statement) The followingare the balances of Ledger book of Sanjay Industries Ltd. as on 31st March 2006. Carriage Inward Profit & loss account 54,000 Stock. 1st April 2005 6,75,000 8,550 Purchases 22,05,000 (31st March 2005) Sales 30,60,000 2,70,000 Salaries 67,500 Bills Receivables Wages Share capital (Authorized Capital 2,00,000 shares of Rs.10 each) 45,000 9,00,000 Sundry Expenses 63,450 Discount 27,000 Bills Payable 63,000 Purchases returns 90,000 Rent 36,000 2,47,500 1,53,000 4,15,800 Patents & trademark 43,200 1,57,500 Debtors Creditors Furniture & Fittings Plant & Machinery 2,61,000 Cash at Bank General Reserve 1,39,500 Further information- 1. Outstanding rent amounted to Rs.7,200 while outstanding salaries are Rs. 8,100 at the end of the year. 2. Make a provision for doubtful debts amounting to Rs. 4,590. 3. Stock on 31st March 2006 was valued at Rs. 7,92,000. 4. Depreciate plant & machinery @ 14% and furniture & fittings @18%. 5. Amortize patents & trademarks @ 5%. 6. Provide for managerial remuneration @ 10% of the net profit before such commission. 7. Make a provision for income tax @ 35% on net profit. 8. The board of directors proposes a dividend @ 10% for the year ended 31s'March 2006 after transfer to General Reserve @ 5% of profit after tax. You are required to- (Show your workings clearly) QA. Prepare following Financial Statements of Sanjay Industries Ltd. a. Trading and Profit & Loss Account for the year ending 31 March 2006 b. Balance sheet as on 31st March 2006 QB. Comment on the Profits of the company such as- a. Gross Profit VS Net Profit b. Net Profit before tax VS Net Profit After Tax
Q3.CASE STUDY:
SANJAY INDUSTRIES LTD. (Balance Sheet and Income Statement)
The followingare the balances of Ledger book of Sanjay Industries Ltd. as on 31st March 2006.
Stock. 1st April 2005
6,75,000
Carriage Inward
8,550
Purchases
22,05,000
Profit & loss account (31st March 2005)
54,000
Sales
30,60,000
Salaries
67,500
Wages
2,70,000
Bills Receivables
45,000
Share capital (Authorized Capital 2,00,000 shares of Rs.10 each)
9,00,000
Sundry Expenses
63,450
Discount
27,000
Bills Payable
63,000
Purchases returns
90,000
Rent
36,000
Patents & trademark
43,200
Debtors
2,47,500
Creditors
1,57,500
Furniture & Fittings
1,53,000
Plant & Machinery
2,61,000
Cash at Bank
4,15,800
General Reserve
1,39,500
Further information-
1. Outstanding rent amounted to Rs.7,200 while outstanding salaries are Rs. 8,100 at the end of the year.
2. Make a provision for doubtful debts amounting to Rs. 4,590.
3. Stock on 31st March 2006 was valued at Rs. 7,92,000.
4.
5. Amortize patents & trademarks @ 5%.
6. Provide for managerial remuneration @ 10% of the net profit before such commission.
7. Make a provision for income tax @ 35% on net profit.
8. The board of directors proposes a dividend @ 10% for the year ended 31stMarch 2006 after transfer to General Reserve @ 5% of profit after tax.
You are required to- (Show your workings clearly)
Q A. Prepare following Financial Statements of Sanjay Industries Ltd.
a. Trading and Profit & Loss Account for the year ending 31 March 2006
b. Balance sheet as on 31st March 2006
Q B. Comment on the Profits of the company such as-
a. Gross Profit VS Net Profit
b. Net Profit before tax VS Net Profit After Tax
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