This case is in continuation to Solved Problem 5.2 of this Chapter on Kataria Plastics. The promoter of the firm, Kattu provides you with its third period of transactions. You are required to prepare its trial balance and its financial statements.

PROBLEM 5.2

Tushar Kataria Makes Plastics

One day, Tushar Kataria, an XLER, quit his job and started a firm, named Kataria Plastics Limited. Kattu did well in the first period of his business and decided to continue doing the same business. He appointed you as the firms’ accountant. He shared with you the following data and requested you to prepare its two key financial statements at the end of the period.

The opening balance sheet of the firm is provided to you here:

Transcribed Image Text:

Date 01.11. X5 02.11. X5 03.11. X5 04.11. X5 05.11. X5 Tushar Kataria Makes Plastics ... Part II Chronological statement of transactions for the month of November 2015 Summary of Transactions • Paid Municipal Rates *3,571 Purchased Raw Materials worth 12,236 and paid by cheque. Prices have increased by 5%. Received payment from M/s Digvijay Industries, *55,296, net of discount allowed @ 4% (*2,304) ● Purchased Packing Material worth 5,440 for cash ● Sold 168 kg of pipes @ 87.12/kg, amounting to 14,636 for cash Purchased stationery worth 500 in cash ● Purchased Raw Material worth 36,708 from M/s Khosla & Khosla against Bills Payable after 15 days ● Advertisement expenditure 1,000 cash in the Trade Magazine ● Purchased Packing Material worth *2,720 cash • ●