Ascertain the impact of the following transaction on the profit and loss statement for the financial year
Ascertain the impact of the following transaction on the profit and loss statement for the financial year 2016–17:
1. The company borrowed ₹ 100 crore from the State Bank of India the rate of 12% per annum on 1st July 2016. The interest is payable quarterly on the first day of October, January, April and July respectively. The interest due on 1st October 2016 was duly paid but the interest due on 1st January 2017 has not been paid till date of the balance sheet.
2. During the year, the company spent ₹ 13 million towards buying various stationary items. As on 31st March 2017, the store department still has stationary items costing ₹ 1.8 million with it whereas stationary items in hand on 1st April 2016 amounted to ₹ 2.3 million.
3. The company paid employee cost of ₹ 134.75 million during the year including an advance of ₹ 2 million to one of the employees. Salaries for the month of March 2017 amounting to ₹ 15.35 million were paid on 5th April 2017. The company would also like to create a provision of ₹ 2.35 million towards retirement benefits for the employees.
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