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Problems On Income Statement

The document provides information and financial data from the balance sheets and income statements of two companies - Shankar Ltd and Kumar Co. Ltd. Key details include: 1) Line items from Shankar Ltd's balance sheet according to the companies act schedule. 2) Financial information for Shankar Ltd for the year ending March 31, 2018, including a statement of profit and loss with revenues of Rs. 100,000 and net profit of Rs. 34,950. 3) Financial balances for Kumar Co. Ltd as of March 31, 2019, including a statement of profit and loss with total revenue of Rs. 6,62,500 and net profit of Rs. 1,69,100.

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4K views

Problems On Income Statement

The document provides information and financial data from the balance sheets and income statements of two companies - Shankar Ltd and Kumar Co. Ltd. Key details include: 1) Line items from Shankar Ltd's balance sheet according to the companies act schedule. 2) Financial information for Shankar Ltd for the year ending March 31, 2018, including a statement of profit and loss with revenues of Rs. 100,000 and net profit of Rs. 34,950. 3) Financial balances for Kumar Co. Ltd as of March 31, 2019, including a statement of profit and loss with total revenue of Rs. 6,62,500 and net profit of Rs. 1,69,100.

Uploaded by

cnagadeepa
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Unit V

Final Accounts
1. Under which heading and sub-heading will the following items appear
in Balance sheet of a company as per schedule III, Part-1 of the companies
Act, 2013?
i) Bills Payable - Current Liability – Trade payables – Note 4
ii) Bills Receivable – Current Assets – Trade receivables – Note 9
iii) Trade Marks – Fixed Assets - Intangible Assets – Note 7
iv) Work-in-Progress – Current Assets – Inventories – Note 8
v) Prepaid Insurance – Current Assets – Other Current Assets
vi) Stores and Spare Parts – Current Assets – Inventories – Note 8

Investment in Debentures -Non-current Assets - Non Current Investment


Security Premium – Shareholder Fund – Reserves and surplus – Note 2
Provision For Tax – current Liabilities – Short term provision – Note 6
Rent receivable – Current Assets – Other current assets

2. You are given the following information taken from Shankar Ltd. for the
year ending 31.03.2018. Prepare a statement of Profit and Loss.
Particulars Rs.
Revenue from Operations revenue 98000
Other Income Other inco 2000
Advertising Other exp-14 5250
Salaries Empe ben exp- 11 27000
Depreciation Dep - 13 2800
Insurance Other exp – 14 1000
Interest on Debentures Fin cost - 12 1000
Preliminary Expenses Written Off Other exp - 14 1000
Bad Debts Other exp -14 500
Discount Other exp – 14 500
Printing and Stationery Other exp- 14 1000
Cost of materials consumed Material consum 25000
In the Books of Shankar Ltd
Statement of Profit and Loss for the year ending 31.3.2018
Particulars Note Amount
I Revenues from operations (net sales + commission 98,000
received)
II Other Income 2,000
III Total Revenue (I+II) 1,00,000
IV Expenses :
Cost of material consumed 25,000
Employee Benefit Expenses 11 27,000
Finance cost (int on debenture) 12 1,000
Depreciation and Amortization expenses 13 2,800
Other Expenses 14 9,250
Total Expenses 65,050
V Profit Before tax (III – IV) 34,950
VI Tax expenses -
VII Profit after tax (v – vi) 34,950

Note 14 – Other Expenses


Advertisement 5,250
Insurance 1,000
Preliminary Expenses Written off 1,000
Bad debts 500
Discount 500
Printing and Stationary 1,000
Total 9,250

3. From the following balances of Kumar Co.Ltd,as on 31-3-2019,prepare a


statement of Profit and loss.
Particulars Rs
Interest on Debentures Fin cost - 12 32400
Travelling Expenses Other exp – 14 15000
Delivery Van Expenses Other exp – 14 5000
Bad debts Other exp – 14 6000
Discount Other exp – 14 7000
Purchases Purchases 315000
Opening Stock Changes in inventories 75000
Freight Charges Other exp – 14 8000
Depreciation Dep - 13 25000
Insurance Other exp – 14 5000
Commission Received Add with sales 7500
Sales Revenues 650000
Share Transfer Fees Other income 5000
In the Books of Kumar Co Ltd
Statement of Profit and Loss for the year ending 31.3.2019
Particulars Note Amount
I Revenues from operations (net sales + commission received) 6,57,500
II Other Income 5,000
III Total Revenue (I+II) 6,62,500
IV Expenses :
Purchase 3,15,000
Changes in inventories (opening stock – closing stock) 75,000
Employee Benefit Expenses 11 -
Finance cost (interest on debenture) 12 32,400
Depreciation and Amortization expenses 13 25,000
Other Expenses 14 46,000
Total Expenses 4,93,400
V Profit Before tax (III – IV) 1,69,100
VI Tax expenses -
VII Profit after tax (v – vi) 1,69,100

Note 14 – Other Expenses

Travelling Expenses 15000


Delivery Van Expenses 5000
Bad debts 6000
Discount 7000
Freight Charges 8000
Insurance 5000
Total 46,000

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