FINAL ACCOUNTS

1. As per Schedule III of Companies Act 2013, prepare financial statement for Gillette India Pvt Ltd.
Particulars Amount (Rs.) Particulars Amount (Rs.)
Plant and Machinery 1,00,000 Sales 3,50,000
Land and Building 2,00,000 Purchase 2,00,000
Sales Return 10,000 Opening Stock 30,000
Purchase Return 10,000 Debtors 50,000
Creditors 20,000 Cash in Hand 10,000
Wages 20,000 Salaries 10,000
General Expenses 10,000 Dividend Received 20,000
Capital 3,00,000 Selling Expenses 20,000
Rent 30,000 Insurance 10,000
Adjustments
a) Closing Stock is Rs. 3,00,000.
b) Provide depreciation for Plant and Machinery, Land and Building is 10% .
c) 5% provision for Debtors.
d) Wages outstanding Rs 1,000, Salaries prepaid Rs. 2,000 and Accrued Dividend is 3,000 .
e) Due to accident goods lost for Rs 50,000, recovered from insurance Rs. 40,000.
f) Interest on Capital 10%.

S.No Adjustment Amount Posting

1 Closing Stock Closing Stock 300000 Trading A/c (Cr) Given in Adjustment
Closing Stock 300000 B/S Current Assets (Dr) Given in Adjustment

2 Wages Wages 20000 Given in Problem

(+) Outstanding Wages 1000 Liability - Current Liability (Cr) Given in Adjustment
Wage 21000 P&L A/c (Dr.)

2 Prepaid Salary Salary 10000 Given in Problem

(-) Prepaid Salary 2000 Asset - Current Asset (Dr) Given in Adjustment
Salary 8000 P&L A/c (Dr)

3 Accrued Dividend Dividend Received 20000 Given in Problem

(+) Accrued Dividend 3000 Asset - Current Asset (Dr) Given in Adjustment
Dividend received 23000 P&L A/c (Cr)

4 Depreciation Land & Building 200000 Given in Problem

10% of Depreciation 20000 P&L A/c (Dr) Given in Adjustment
Land & Building 180000 Asset - Fixed Asset (Dr)

4 Depreciation Plant & Machinery 100000 Given in Problem

(-)10% Depreciation 10000 P&L A/c (Dr) Given in Adjustment
 Plant & Machinery 90000 Asset - Fixed Asset (Dr)

5 Provision for Bad Debtors 50000 Given in Problem

Debts
(-) Provision for Bad 5000 P&L A/c (Dr) Given in Adjustment
Debts
Debtors 45000 Asset - Current Asset (Dr)

6 Interest on Capital Capital 300000 Given in Problem

(+) 10% Interest on 30000 P&L A/c (Dr) Given in Adjustment
Capital
330000 Liability - Capital (Cr)

7 Accidental Loss Accidental Loss 50000 Trading A/c (Cr) Given in Adjustment
(-)Insurance Claim 40000 Asset - CA - (Dr) Given in Adjustment
Loss on Goods 10000 P&L A/c (Dr) Difference is Loss
Trading a/c

Particulars Dr. Amount Particulars Cr. Amount

To Open Stock 30000 By Sales 3,50,000
To Purchase 2,00,000 (-) Sales Return (10000) 340000
(-) Purchase Returns (10000) 190000 By Accidental Loss 50000
To Wages 21000 By Closing Stock 300000
To Gross Profit 4,49,000
(Balancing Figure (B/f))
Total 690000 Total 690000
Profit & Loss a/c

Particulars Dr. Amount Particulars Cr. Amount

To Rent 30,000 By Gross Profit 4,49,000
To Salaries 8,000 BY Dividend Received 23,000
To Selling Expenses 20,000
To Insurance 10,000
To General Expenses 10,000
To Loss on Sale of Goods 10,000
To Interest on Capital 30,000
To Depreciation
Land & Building 20,000
Plant & Machinery 10,000
To Provision for Debtors 5,000
To Net Profit 3,19,000
Total 4,72,000 Total 4,72,000
Balance Sheet

Liabilities Cr. Amount Asset Dr. Amount

Share Capital Fixed Asset
Capital 3,30,000 Plant and Machinery 1,80,000
Profit 3,19,000 Land and Building 90,000
Reserves & Surplus Current Asset
Current Liabilities Debtors 45,000
Creditors 20,000 Cash in Hand 10,000
Outstanding Wages 1,000 Closing Stock 3,00,000
Salaries Prepaid 2,000
Accrued Dividend 3,000
Insurance Claim 40,000
Total 6,70,000 Total 6,70,000