The following is the trial balance of Sangeeta Udhyog Ltd. as on 31st March 2006.

Further information 1. The authorised share capital of the company consists of 4,00,000 equity shares of ` 10 each.
2. The stock was valued at ₹9,98,720 and loose tools at ` 80,000.
3. Wages ₹15,120 and office salaries ₹9,600 are due.
4. Bank loan was taken on 1-04-2005 on interest @ 15% p.a.
5. Depreciation is to be provided on:
1. Plant & Machinery @ 14%;
2. Furniture @ 18%.
6. Write off one-third Preliminary Expenses.
7. Provide ₹68,000 on Debtors for Doubtful Debts.
8. Provide further ₹24,960 for discount on debtors.
9. Make a provision for income tax @ 35%.
10. Transfer 10% of net profits to General Reserve.
11. The Directors recommend dividend @ 10% per annum for the year ended 31st March 2006.
Required 1. Prepare the following financial statements of Sangeeta Udhyog Ltd.:

a. Profit and loss account for the year ended 31st March 2006.

b. Profit and loss appropriation account for the year ended 31st March 2006.

c. Balance sheet as on 31st March 2006.
2. Briefly comment upon the performance of the company.

Transcribed Image Text:

Accounts Stock, 1st April 2005 Wages Debtors & creditors Furniture Dr. (?) 14,91,360 8,77,920 Cr. (*) 13,15,200 7,37,760 40,000 Purchases & sales 57,45,680 93,59,200 Carriage inwards 39,280 Returns 1,01,120 78,480 Advance payment of income tax 1,14,320 Bank loan-Secured-Long term 4,00,000 Manufacturing expenses. 1,53,920 Interest on loan 36,000 Profit & loss account, 1st April 2005 69,440 Cash-in-hand 15,360 Leasehold factory building 13,13,680 Plant & machinery 10,27,200 Loose tools 1,00,000 Carriage outwards 74,080 Share capital 32,00,000 Calls-in-Arrear 8,000 Rates & electricity-factory 1,40,880 Office expenses 64,000