The under mentioned balances appeared in the books of the Pioneer Flour Mills Ltd, as on 31st
December,2021:
Particulars (₹) Particulars (₹)
Purchases 5,00,903 General Reserve 2,50,000
Sales 9,83,947 Unclaimed Dividends 6,526
Manufacturing Expenses 3,59,000 Trade Creditors 36,858
Opening Stock 1,72,058 Buildings 10,00,000
Establishment 26,814 Machinery 2,00,000
General Charges 31,078 Motor Vehicles 15,000
Director’s Fees 1,800 Furniture 5,000
Interim Dividend 15,000 Debtors 1,57,380
Interest (cr) 8,544 Investments 2,88,950
Profit and Loss A/c
1
st July 2020(cr)
16,848 Cash Balances 67,240
Share Capital (Authorized and
Issued) 60,000
Shares of (₹) 10 each
6,00,000 Staff Provident Fund 37,500
From these balances and the following information, prepare for the half-year ending at 31St
Decembe,2021 the Company’s Balance Sheet and its Profit & Loss Account.
(a) The stocks of wheat and flour on 31st December,2021 were valued at Rs 1,48,680
(b) Provide (₹) 10,000 for Depreciation of Building, (₹) 6,500 for Managing Agents’
Commission and (₹)1,500 for the company’s contribution to the provident Fund
(c) Interest accrued on investments amount to (₹) 2,750
(d) A claim of (₹) 2,500 for workmen’s compensation is being disputed by the company.
You may make the necessary assumptions for preparing the Balance Sheet and statement of P&
L of Pioneer Flour Mills
