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Following trial balance as at 31st March 2006 has been prepared from the account books of Mahesh Foods Ltd
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Further information
1. The authorized capital of the company is 3 lac equity shares of ₹ 10 each of which 2.40 lac shares have been issued.
2. The closing stock of finished goods is valued at ₹ 33,50,000.
3. Depreciation to be charged: plant and machinery @ 14%, furniture & fixtures @ 18% and building @ 10%.
4. Provide for income tax @ 35%.
5. Transfer to general reserve @ 5% of net profit. Round off to next higher 100 rupees.
6. A dividend of 15% is recommended by the board of directors.
Required
1. Prepare the following financial statements of Mahesh Foods Ltd.:
(a). Balance sheet as at 31st March 2006.
(b). Profit and loss account for the year ended 31st March 2006.
(c). Profit and loss appropriation account for the year ended 31st March 2006.
2. Briefly comment upon the performance of the company.
(Hint: Raw materials inventory, 31.03.2006, ₹ 16,02,000 appearing in the trial balance means that raw materials ₹ 1,71,60,000 represent those consumed, that is, opening inventory plus purchases less closing inventory.)
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