From the following figures extracted from the books of Lam Research Limited, you are required to prepare a Statement of Income and Expenditure for the year ended 31st March 2018 and a Statement of Sources and Application of funds as on that date after making the necessary adjustments:

Particulars	Rs (crores)
Capital a/c	228800
Drawings	13200
Plant and Machinery	99000
Freehold Property	66000
Purchases	110000
Returns Outwards	1100
Salaries	13200
Office Expenses	2750
Office Furniture	5500
Discount A/C (Dr)	1320
Sundry Debtors	29260
10% Loan to Krishna	44000
Cash at bank	29260
Sales	231440

Particulars	Rs(Crores)
Bills Pavable	5500
Opening Stock	38500
Wages	35200
Sundry Creditors	44000
Postage and Telegram *	1540
Insurance	1760
Gas and Fuel	2970
Bad Debts	660
Office Rent	2860
Freight	9900
Loose Tools	2200
Factory Lighting	1100
Provision for Doubtful debts	880
Interest on Loan to Krishna	1100
Cash in hand	2640

Adjustments:

1. Closing Stock was valued at Rs. 72600.
2. A new machine was installed during the year costing Rs. 15400 but it was not recorded in the books as no payment was made for it.
3. Wages Rs. 1150 paid for its installation have been debited to the wages account.
4. Depreciate plant and machinery by 33-1/3%, Furniture by 10%, Freehold property by 5%
5. Loose Tools were valued at Rs.1760
6. Of the Sundry debtors Rs 660 are bad and should be written off
7. Maintain a provision of 5% on sundry debtors for doubtful debts
8. The manager is entitled to a commission of 10% of the net profits after charging such a commission

Answer rating: 100% (QA)

Statement of Income and Expenditure for the Year Ended 31st March 2018 Amount Rs in crores Sales 231... View the full answer