1. Solution Beta (Private) Limited Balance Sheet As At June 30, 2002
Lecture 1
Solution
Beta (Private) Limited
Balance Sheet As At June 30, 2002
Particulars Note
Amount Rs.
Fixed Assets at WDV 1
Current Assets
492,330
Debtors
Stock in Trade
Bank Balance
42,525
48,630
14,994
Current Liabilities
106,149
Creditors
Proposed Dividend
27,360
15,000
42,360
Working Capital
63,789
Net Assets Employed
556,119
Double underline

2. Solution Financed By: Authorized Capital 50,000 Shares of Rs. 10 each
Lecture 1
Solution
Double underline
Financed By:
Authorized Capital
50,000 Shares of Rs. 10 each
500,000
Paid Up Capital
30,000 Shares of Rs. 10 each
General Reserve
Accumulated Profit and Loss Account 2
300,000
8,000
8,119
Share Holders Equity
Debentures
316,119
240,000
Total
556,119
Double underline
Note: Slide 1 and 2 will be shown together and then zoomed one by one as done in earlier lectures.

3. Note 1 – Fixed Assets at WDV
Lecture 1
Note 1 – Fixed Assets at WDV
Particulars
Cost
Rate
Accumulated Depreciation
WDV
As At
1-7-01
Addition/
Deletion
For The
Year
Land
120,000
Building
315,000 10
66,000
24,900
90,900
224,100
Furniture & Fixtures
34,500
11,250
2,325
13,575
20,925
Vehicles
187,500
46,050
14,145
60,195
127,305
TOTAL
657,000
123,300
41,370
164,670
492,330
Double underline
Note: to be Zoomed in two parts as done in lecture 38

4. Calculation of Depreciation
Lecture 1
Calculation of Depreciation
Building 315,000 – 66,000 = 249,000 x 10% = 24,900
Furniture 34,500 – 11,250 = 23,250 x 10% = 2,325
Vehicles 187, ,050= 141,450 x 10% = 14,145

5. Note 2 – Accumulated Profit and Loss Acocount
Lecture 1
Note 2 – Accumulated Profit and Loss Acocount
Balance As Per Trial Balance 49,489
Less: Depreciation for the Year (note 1) (41,370)
8,119
Double underline

6. Fixed Assets Schedule with Addition / Deletion
Lecture 1
Fixed Assets Schedule with Addition / Deletion
Addition during the year
Furniture
and Fixture – Cost Rs. 15,000
Vehicles – Cost Rs. 750,000
Deletion / Disposal
Vehicle – Cost Rs. 187,500
Sale Proceeds – Rs. 150,000

7. Accumulated Depreciation
Lecture 1
Particulars
Cost R A T E
Accumulated Depreciation
WDV
As At
1-7-01
Addition/
Deletion On
Disposal
For The
Year
Land
120,000
Building
315,000 10
66,000
24,900
90,900
224,100
Furniture and Fixture
34,500
15,000
49,500
11,250
3,825
15,075
34,425
Vehicles
187,500
750,000
(187,500)
46,050
(46,050)
75,000
675,000
TOTAL
657,000
577,500
1,234,500
123,300
(66000)
105720
163,020
1,053,525
Note: to be Zoomed in two parts as done in lecture 38
Double underline

8. Calculation of Depreciation
Lecture 1
Calculation of Depreciation
Building 315,000 – 66,000 = 249,000 x 10% = 24,900
Furniture 34,500 – 11,250 = 23,250 x 10% = 2,325
,000 x 10% = 1,500 OR
49,500 – 11,250 = 38,250 x 10% = 3,825
Vehicles 750,000 – = 750,000 x 10% = 75,000

9. Disposal of Fixed Asset Account
Lecture 1
Disposal of Fixed Asset Account
Assets Disposal Account
Debit side.
Cost ,500
Profit and Loss A/c ,550
Credit side.
Acc.Dep ,050
Sale Proceeds 150,000

10. Lecture 1
Question
The following trial balance has been extracted from the books of Delta Limited as on June 30, 2002.
You are required to prepare the profit and loss account for the year and the Balance Sheet as at June 30, 2002.

11. Trial Balance as at June 30, 2002
Lecture 1
Delta Limited
Trial Balance as at June 30, 2002
Title of Account
Dr. Rs.
Cr. Rs.
Paid up capital
1,100,000
Accumulated Profit and Loss Account
308,520
Land
200,000
Building
585,000
Machinery
495,000
Vehicles
115,000
Accumulated Dep. – Building
85,000
142,200
30,000
Purchases
1,815,282

12. Provision for Doubtful Debts 1-7-01 7,749
Lecture 1
Title of Account
Dr. Rs.
Cr. Rs.
Sales
2,851,290
Office Maintenance
289,512
Salaries
487,863
Rent
38,700
Electricity
13,941
Bad Debts Written off
6,732
Provision for Doubtful Debts
7,749
Debtors
196,056
Creditors
157,437
Stock
231,201
Cash and Bank Balance
207,909
TOTAL
4,682,196

13. Following adjustments are required to be made:
Lecture 1
Following adjustments are required to be made:
Authorized share capital is Rs. 1,100,000 divided in to 11,000 shares of Rs. 100 each.
Stock in Trade on Rs. 262,278
Salaries payable amount to Rs. 5,229
Rent paid in advance amount to Rs. 2,700
Dividend of Rs. 132,000 is proposed
Provision for doubtful debts is to be increased to Rs. 8,442
Depreciation Building 5%, Machinery 10% and Vehicles 20% on Written Down Value

14. Balance Sheet As At June 30, 2002
Lecture 1
Solution
Delta Limited
Balance Sheet As At June 30, 2002
Particulars Note
Amount Rs.
Fixed Assets at WDV 1
Current Assets
1,060,520
Debtors 2
Prepaid Rent
Stock in Trade
Cash and Bank Balance
187,614
2,700
262,278
207,909
Current Liabilities
660,501
Creditors
Salaries Payable
Proposed Dividend
157,437
5,229
132,000
294,666
Working Capital
365,835
Net Assets Employed
1,426,355
Double underline

15. Accumulated Profit and Loss Account 326,355
Lecture 1
Double underline
Financed By:
Authorized Capital
11,000 Shares of Rs. 100 each
1,100,000
Paid Up Capital
Accumulated Profit and Loss Account
326,355
Total
1,426,355
Double underline
Note: Slide 14 and 15 will be shown together and then zoomed one by one as done in earlier lectures.

16. Profit and Loss Account for the Year Ended June 30 2002
Lecture 1
Delta Ltd
Profit and Loss Account for the Year Ended June
Note
RS.
Sales
2,851,290
Less: Cost of Goods Sold 3
1,784,205
Gross Profit
1,067,085
Less: Expenses
Salaries and Wages 4
493,092
Office Maintenance
289,512
Rent 5
36,000
Electricity
13,941
Bad Debts
Provision for bad debts 6
6,732
693
Depreciation 1
77,280
917,250
Net Profit
149,835

17. Less: Dividend Declared 132,000
Lecture 1
Less: Dividend Declared
132,000
17,835
Add: Accumulated Profit Brought Forward
308,520
Accumulated Profit Carried Forward
326,355
Double underline
Note: Slide 16 and 17 will be shown together and then zoomed one by one as done in earlier lectures.

18. (1) Fixed Assets at WDV Particulars Cost R A T E Acc. Dep. WDV As At
Lecture 1
(1) Fixed Assets at WDV
Particulars
Cost R A T E
Acc. Dep.
WDV
As At
1-7-01
Addition/
Deletion
For The
Year
Land
200,000
Building
585,000 5
85,000
25,000
110,000
475,000
Machinery
495,000 10
142,200
35,280
177,480
317,520
Vehicles
115,000 20
30,000
17,000
47,000
68,000
TOTAL
1,395,000
257,200
77,280
334,480
1,060,520
Note: to be Zoomed in two parts as done in lecture 38
Double underline

19. Doubtful Debts(note 6) (8,442) 187,614
Lecture 1
(2) Debtors
Debtors ,056
Less: Provision for
Doubtful Debts(note 6) (8,442)
187,614
Double underline

20. (3) Cost of Goods Sold Opening Stock 231,201 Add: Purchases 1,815,282
Lecture 1
(3) Cost of Goods Sold
Opening Stock
231,201
Add: Purchases
1,815,282
Cost of Goods Available for Sale
2,046,483
Less: closing stock
(262,278)
1,784,205
Double underline

21. (4) Salaries (5) Rent Salaries and Wages Debit side. Paid 487,863
Lecture 1
(4) Salaries
(5) Rent
Salaries and Wages
Debit side.
Paid ,863
Payable 5,229
Credit side.
Balance 493,092
Rent
Debit side.
Paid ,700
Credit side.
Prepaid 2,700
Balance 36,000

22. (6) Provision for Doubtful Debts
Lecture 1
(6) Provision for Doubtful Debts
Provision
Debit side.
Balance 8,442
Credit side.
Bal. B/F 7,749
P&L A/c