Refer to the case of Monik Traders given in the exercises of the last chapter. Monik Varma now wants to know as to where his firm stands after one month of running of the business. Help him. Towards this purpose comply with the following requirements.
Requirements:
1. Analysis of the trial balance as already prepared.
2. Identification of the adjustments needed. Apply the same rates of depreciation as done in the case of Bharat Scientific Products Enterprise illustrated in this chapter.
3. Valuation of inventory. Assume the same basis of valuation as in the case of Bharat Scientific Products Enterprise.
4. Construction of the balance sheet.
5. Construction of the profit and loss account.
6. Brief analysis of the financial statements.