90.2K

Verified Solution

Link Copied!

Rs. Illustration - 46 X Co. Ltd. was incorporated on 1st July, 2008 to take over the business of Mr. A as and from 1st April 2008, a37 Mr. A's Balance Sheet, as at that date, was as under: Liabilities Rs. Assets Trade creditors 36,000 Building 80,000 Capital 1,94,000 Furniture and Fittings 10,000 Debtors 90,000 Stock 30,000 Bank 20,000 2,30,000 2,30,000 Debtors and Bank balance are to be retained by the vendor and creditors are to be paid off by him. Realisa- tion of debtors will be made by the company on a commission of 5% on cash collected. The company is to issue A with 10,000 equity shares of Rs. 10 each, Rs. 8 per share paid up and cash of Rs. 5,000. The company issued to the public for cash 20,000 equity shares of Rs. 10 each on which by 31 st March, 2009, Rs.8 per share was called and paid up except in the case of 1,000 shares on which the 3rd call of Rs. 2 per share had not been reatised. In the case of 2,000 shares, the entire face value of the shares has been realised. The share issue was underwritten for 2% commission, payable in shares fully paid up. In addition to the balances arising out of the above, the following balances were shown by the books of account of X Co. Ltd, on 31st March, 2009. Rs. Discount (including Rs. 1,000 allowed on vendor's debtors) 6,000 Preliminary Expenses 10,000 Director's Fees 12,000 Salaries 48,000 Debtors (including vendor's debtors) 1,60,000 Creditors 48,000 Purchases 3,20,000 Sales 4,60,000 Stock on 31st March, 2009 was Rs. 52,000. Depreciation at 10% on Furniture and Fittings and at 5% on build- ing is to be provided. Collections from debtors belonging to the vendor were Rs. 60,000 in the period. Prepare the Trading and Profit and Loss account for the period ended 31 st March, 2009 of X Co. Ltd. and its Balance Sheet as at that date

Answer & Explanation Solved by verified expert

See Answer