1.

The Silver Ore Co. Ltd. was formed on April 1, 2005 with an authorised capital of Rs6,00,000 in shares of Rs 10 each. Of these 52,000 shares had been issued and subscribed but there were calls in arrear on 100 shares Rs 2.50. From the following trial balance as on March 31, 2006 prepare the trading and profit and loss account and the balance sheet: Rs RsCash at Bank1,05,500Advertising5,000Share Capital5,19,750Cartage on Plant1,800Plant40,000Furniture and Buildings20,900Sale of Silver1,79,500Administrative Expenses28,000Mines2,20,000Repairs of Plant900Promotion Expenses6,000Coal and Oil6,500Interest of F.D. up to Dec.31,20053,900Cash530Dividend on Investment3,200Investments-share of tin mines80,000Royalties Paid10,000Brokerage on above1,000Railway track and wagons17,0006% F.D. in Syndicate Bank89,000Wages of Mines74,220 (i) Depreciate plant and railways by 10%; furniture and building by 5%; (ii) Write off a third of the promotion expenses; (iii) Value of silver ore on March 31, 1969 Rs 15,000, The directors forfeited on December 20, 1968, 100 shares on which only Rs 7.50 had been paid.

Answer»

The Silver Ore Co. Ltd. was formed on April 1, 2005 with an authorised capital of Rs6,00,000 in shares of Rs 10 each. Of these 52,000 shares had been issued and subscribed but there were calls in arrear on 100 shares Rs 2.50. From the following trial balance as on March 31, 2006 prepare the trading and profit and loss account and the balance sheet:




























































































Rs





Rs



Cash at Bank



1,05,500



Advertising



5,000



Share Capital



5,19,750



Cartage on Plant



1,800



Plant



40,000



Furniture and Buildings



20,900



Sale of Silver



1,79,500



Administrative Expenses



28,000



Mines



2,20,000



Repairs of Plant



900



Promotion Expenses



6,000



Coal and Oil



6,500



Interest of F.D. up to Dec.31,2005



3,900



Cash



530



Dividend on Investment



3,200



Investments-share of tin mines



80,000



Royalties Paid



10,000



Brokerage on above



1,000



Railway track and wagons



17,000



6% F.D. in Syndicate Bank



89,000



Wages of Mines



74,220










(i) Depreciate plant and railways by 10%; furniture and building by 5%; (ii) Write off a third of the promotion expenses; (iii) Value of silver ore on March 31, 1969 Rs 15,000, The directors forfeited on December 20, 1968, 100 shares on which only Rs 7.50 had been paid.


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