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Company Final Accounts: Rashna Company Ltd. at 31 December, 200A

This document provides the financial balances and additional information needed to prepare the final accounts for Rashna Company Ltd. as of December 31, 200A. It includes balances for assets, liabilities, equity, income and expenses. Additional details are provided about transactions and adjustments that need to be recorded, such as issuing bonus shares, revaluing land and buildings, adjusting provisions. The required task is to prepare the income statement and balance sheet for Rashna Company Ltd. as of December 31, 200A based on the information given.

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Isteehad Robin
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75 views2 pages

Company Final Accounts: Rashna Company Ltd. at 31 December, 200A

This document provides the financial balances and additional information needed to prepare the final accounts for Rashna Company Ltd. as of December 31, 200A. It includes balances for assets, liabilities, equity, income and expenses. Additional details are provided about transactions and adjustments that need to be recorded, such as issuing bonus shares, revaluing land and buildings, adjusting provisions. The required task is to prepare the income statement and balance sheet for Rashna Company Ltd. as of December 31, 200A based on the information given.

Uploaded by

Isteehad Robin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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COMPANY FINAL ACCOUNTS

1. The following list of balances was extracted from the books of the
Rashna Company Ltd. at 31 December, 200A.
Description Tk. Tk.
Tk. 1 Ordinary Shares 1,50,000
8% Tk. 1 preferences Shares 50,000
7% Debenture 1,00,000
General Reserve 65,000
Land & Building at cost 1,11,000
Plant & Machinery at cost 3,82,000
Undistributed Profit at 1 January, 200A 35,000
Share Premium Account 20,000
Stock at 1 January, 200A 35,000
Sales 2,90,000
Discount Allowed and Received 3,200 4,600
Debtors and Creditors 48,000 27,000
Accumulated Depreciation- Plant & 85,000
Machinery
Bank 7,500
Carriage Inwards 1,100
Purchases 1,65,000
Suspense Account 400
Wages 23,500
Lighting and Heating 2,900
Office Salaries 8,600
Debenture Interest 7,000
Directors Fees 12,800
Interim Dividends:
Ordinary (5%) 7,500
Preference (4%) 2,000
Allowance for Doubtful Debts 1,500
General Expenses 11,900
Tk. 8,29,000 Tk., 8,29,000

Inspection of the books and records of the company yields the following
additional information:
i. On 31 December 200A, the company issued bonus shares to the
Ordinary shareholders on a 1 for 10 basis. No entry relating to this
has yet been made in the books.
ii. The authorized share capital of the company is 200,000 Tk. 1
Ordinary Shares and 50,000 8% Tk. 1 Preference Shares.
iii. Stock at 31 December, 200A was valued at Tk. 41,000.
iv. The suspense account of Tk. 400 related to cash received for the
sale of some machinery on 1 January 200A. This machinery cost
Tk. 2,000 and the depreciation accumulated thereon amounted to
Tk. 1,500.
v. The directors, on the advice of an independent appraiser, wish to
revalue the land and buildings at Tk. 1,80,000, to make the value
consistent with current prices.
vi. Wages owing at 31 December, 200A amount to Tk. 150.
vii. The depreciation is to be provided on plant and machinery at 10%
on cost.
viii. General expense of Tk.11,900 includes an insurance premium of
Tk. 200 which relates to the period 1 April 200A to 31, March,
200B.
ix. The provision for doubtful debts is to be reduced to 21/2%
x. The director wish to provide for:
- A final ordinary dividend of 5%
- A final preference dividend; and
- A transfer to general reserve of Tk. 15,000
Required: Prepare income statement of the Rashna Company Ltd. for the
period ended 31 December, 200A and a balance sheet as on that date.

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