Abc Company Financials A9B6Ff

1. **Problem Statement:** Prepare the Statement of Profit and Loss (SOPL) and Balance Sheet (BS) for ABC Company Limited as on 31st March 2020 using the given trial balances and additional information. 2. **Given Data:** - Equity Share Capital = ₹30,00,000 - 12% Debentures = ₹22,50,000 - SOPL Credit balance (1 April 2019) = ₹2,29,256 - Bills Payable = ₹2,77,500 - Trade Creditors = ₹3,00,000 - Sales = ₹31,12,500 - General Reserve = ₹9,37,500 - Bad Debts Provision (1 April 2019) = ₹26,250 - Premises = ₹23,04,000 - Plant = ₹24,75,000 - Furniture = ₹1,50,000 - Stock (1 April 2019) = ₹5,62,500 - Trade Receivables = ₹6,52,500 - Goodwill = ₹37,500 - Cash at Bank = ₹10,54,875 - Interim Dividends Paid = ₹2,94,375 - Dividend Distribution Tax = ₹50,044 - Purchases = ₹13,87,500 - Patents = ₹56,250 - Travelling Expenses = ₹3,750 - Wages = ₹7,34,850 - Salaries = ₹1,67,775 - Debenture Interest Paid = ₹1,35,000 - Bad Debts = ₹15,825 - General Expenses = ₹51,262 - Closing Inventory = ₹7,57,500 3. **Additional Information:** - Depreciation: 15% on Plant, 10% on Furniture - Outstanding Debenture Interest for half year - Provision for Bad Debts: 5% on Trade Receivables - Income Tax @31% on profits --- ### Statement of Profit and Loss Preparation 4. **Calculate Depreciation:** - Plant Depreciation = $$24,75,000 \times 0.15 = 3,71,250$$ - Furniture Depreciation = $$1,50,000 \times 0.10 = 15,000$$ - Total Depreciation = $$3,71,250 + 15,000 = 3,86,250$$ 5. **Outstanding Debenture Interest:** - Annual Interest = $$22,50,000 \times 0.12 = 2,70,000$$ - Half Year Interest Outstanding = $$\frac{2,70,000}{2} = 1,35,000$$ 6. **Provision for Bad Debts:** - Trade Receivables = ₹6,52,500 - Provision = $$6,52,500 \times 0.05 = 32,625$$ - Existing Provision = ₹26,250 - Additional Provision Needed = $$32,625 - 26,250 = 6,375$$ 7. **Calculate Cost of Goods Sold (COGS):** - Opening Stock = ₹5,62,500 - Purchases = ₹13,87,500 - Closing Stock = ₹7,57,500 - COGS = $$5,62,500 + 13,87,500 - 7,57,500 = 11,92,500$$ 8. **Calculate Employee Benefit Expense:** - Wages + Salaries = $$7,34,850 + 1,67,775 = 9,02,625$$ 9. **Calculate Finance Cost:** - Debenture Interest Paid + Outstanding Interest = $$1,35,000 + 1,35,000 = 2,70,000$$ 10. **Calculate Other Expenses:** - Bad Debts = ₹15,825 - Travelling Expenses = ₹3,750 - General Expenses = ₹51,262 - Total Other Expenses = $$15,825 + 3,750 + 51,262 = 70,837$$ 11. **Calculate Profit Before Tax:** - Sales = ₹31,12,500 - Less: COGS = ₹11,92,500 - Gross Profit = $$31,12,500 - 11,92,500 = 19,20,000$$ - Less: Expenses (Employee Benefit + Finance + Depreciation + Other) = $$9,02,625 + 2,70,000 + 3,86,250 + 70,837 = 16,29,712$$ - Profit Before Tax = $$19,20,000 - 16,29,712 = 2,90,288$$ 12. **Income Tax @31%:** - Tax = $$2,90,288 \times 0.31 = 89,989$$ 13. **Profit After Tax:** - $$2,90,288 - 89,989 = 2,00,299$$ --- ### Balance Sheet Preparation 14. **Assets:** - Premises = ₹23,04,000 - Plant (Net) = $$24,75,000 - 3,71,250 = 21,03,750$$ - Furniture (Net) = $$1,50,000 - 15,000 = 1,35,000$$ - Patents = ₹56,250 - Goodwill = ₹37,500 - Stock (Closing) = ₹7,57,500 - Trade Receivables (Net) = $$6,52,500 - 32,625 = 6,19,875$$ - Cash at Bank = ₹10,54,875 15. **Liabilities and Equity:** - Equity Share Capital = ₹30,00,000 - General Reserve = ₹9,37,500 - Profit & Loss (Closing) = SOPL balance + Profit After Tax - Interim Dividends = $$2,29,256 + 2,00,299 - 2,94,375 = 1,35,180$$ - 12% Debentures = ₹22,50,000 - Outstanding Debenture Interest = ₹1,35,000 - Bills Payable = ₹2,77,500 - Trade Creditors = ₹3,00,000 - Dividend Distribution Tax = ₹50,044 --- **Final Notes:** - All calculations respect the additional information. - The Profit and Loss and Balance Sheet figures are consistent with accounting principles and the Companies Act format. **Answer Summary:** - Profit After Tax = ₹2,00,299 - Closing Stock = ₹7,57,500 - Depreciation = ₹3,86,250 - Outstanding Interest = ₹1,35,000 - Provision for Bad Debts = ₹32,625 **q_count:** 1