Question 2:The following is the trial balance of Muti Tech Limited as at December 31, 2006.Paid-up share capital10,00,0005,00,000Share premiumNet income January 1, 200610% Debentures payable 20107,00,0006,00,000Piant and assets39,00,000Accumulated DepreciationMerchandise inventory4,60,0008,80,000Accounts receivableAccounts payable4,20,0003,60,000Purchases and sales36,50,00065,40,0005,00,00070,000Administrative salariesSales salariesDirectors remunerationAdvertising expensesCarriage outwardsUtility expenses1,60,0002,80,0001,00,0003,00,000Bank overdraft1,00,0001,02,60,000 1,02,60,000Additional 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 directorsa.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 forbad debts is to be maintained at 5% of the accounts receivableRequireda. Income statement of the year ended December 31, 2006.b. Statement of retained earnings.c Balance sheet as at December 31, 2006. 4G 46. 1:46 019Company - FS -..Questlon 2:The following is the trial balance of Multi Tech Limited as at December 31, 2006.Paid-up share capitalShare premiumNet income January 1, 200610,00,0005,00,0007,00,00010% Debentures payable 20106,00,000Plant and assets39,00,000Accumulated DepreciationMerchandise inventory4,60,0008,80,000Accounts receivable4,20,000Accounts payable3,60,000Purchases and sales36,50,00065,40,000Administrative salaries5,00,000Sales salaries70,000Directors remuneration1,60,000Advertising expenses2,80,000Carriage outwards1,00,000Utility expenses3,00,000Bank overdraft1,00,0001,02,60,000 1,02,60,000Additional 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 directorshave proposed final dividend of 10% on the ordinary share capital.d. Depreciation is provided at 10 percent per annum on plant and assets. Allowance forb.C.bad debts is to be maintained at 5% of the accounts receivableRequireda. Income statement of the year ended December 31, 2006.b. Statement of retained earnings.c. Balance sheet as at December 31, 2006.(]

The trail Balance of a company for the year ended 31st December 2006 Required a. Income Statement…

Answered: Question 2: The following is the trial…

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Question 2:
The following is the trial balance of Muti Tech Limited as at December 31, 2006.
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
Accumulated Depreciation
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
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.

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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