Accountancy & Auditing

Write the short note on the following?

The Charitable Trust had the following balance sheet as on December 31, 2009. Liabilities : Rs. Salaries payable 3000 Subscription received in advance 500 Capital fund 11200 Add life membership fee 2500 Add surplus 1900 19100 Assets : Rs. Cash 1500 Equipment 8000 Stock of medicine 1600 Furniture 6000 Subscription due and receivable 2000 19100 Account : The accompanying income and expenditure account was the following: Expenditure Rs. Income Rs. To salaries 35000 By entrance fee 300 To cost of medicine used 6700 By subscription 36100 To depreciation of equipment 600 By miscellaneous receipts 150 To miscellaneous expenses 1500 By profit on sale of furniture 200 To surplus 1900 By grant from government 8950 45700 45700 Adjustments: The equipment stood at Rs.6000; subscription due and receivable totalled Rs.2500; whereas subscription already received for next year were Rs.700; closing stock of medicine Rs.1100. Prepare receipts and payments account for the year 2009.

Below is given the balance sheet of Sunlight Company Limited as on 31st December, 1988. Liabilities : Rs. Share capital 200000 Reserve fund 150000 Bank overdraft 200000 Sundry creditors 400000 950000 Assets : Rs. Fixed assets 550000 Stock in trade 250000 Liquid assets 150000 950000 Statement : Bank overdraft is a permanent arrangement made with the bank. Calculate current ratio; quick ratio; debt-equity ratio; fixed assets ratio; and proprietary ratio.

Following are summarised balance sheets of a company. Prepare a Comparative balance sheet. Liabilities 2004 2005 Assets 2004 2005 Ordinary capital Rs.10 38000 46000 Fixed assets 40000 45000 Reserves 5000 5400 Investment 4000 8000 Loans 600 1600 Current assets 1000 2000 Current liabilities 1400 2000 45000 55000 45000 55000

The following figures are taken from the books of Sheen Company Limited as on December 31, 2009. Rs. Rs. Opening stock 75000 Purchases returns 10000 Purchases 245000 Sales 340000 Wages 30000 Discount 3000 Carriage 950 Profit and loss 15000 Furniture 17000 Share capital 100000 Salaries 7500 Creditors 17500 Rent 4000 General reserve 15500 Trade expenses 7050 Bills payable 7000 Dividend paid 9000 Debtors 27500 Plant and machinery 29000 Cash at bank 46200 Patents 4800 Bill receivables 5000 508000 508000 Adjustments: Closing stock was valued at retail price Rs.105600 which was 20% higher than cost price. Provide for income tax Rs.19827. Depreciate plant and machinery at 15%; furniture at 10%; and patents at 5%. There was outstanding rent Rs.800 and salaries Rs.900. Make provision for bad debts Rs.510. Provide for manager remuneration at 10% of net profit before tax. The directors proposed dividend at 10% on paid up capital. Prepare trading and profit and loss account for the year ended December 31, 2009 and a balance sheet as at that date.