00:00bismillahirrahmanirrahim assalamu alaikum dear students and viewers welcome to my
00:04YouTube channel Dijital Learner Bahadur Debu with your address the question
00:07number one which is related to the side number two of subject ATOMOS
00:12supporting which has a subject code 0344 and it is related to the second
00:18assignment of ATOM semester 2022 of AIOU examination system so it's total
00:26marks are 20 let's start reading the question then we will move to the
00:30requirement of this question and finally we will see the solution of this
00:36question the YASAR cooperation was registered with the nominal capital
00:40rupees 1.2 million divided into equity shares of rupees 10 each on 31st March
00:472021 the following budget balances were extracted from the company's book equity
00:55share capital capital up and paid up rupees 920,000 plant and machine is
01:02720,000 stock opening stock as on 1st April 2022 150,000 fixtures 14,400
01:12preliminary expecting 10,000 right and duty 26,200 goodwill 50,000 which is
01:20169,600 and the cash in hand 19,700 cash at back 76,600 directors fees 11,480
01:32bills payable 76,000 76,000 and general reserve 50,000 on the other hand profit
01:44and loss account credit means not loss it is a profit and balance will be
01:50appearing on the credit side of the profit and loss account 29,000 opposite
01:55payment 8,000 and other information on the second column is 10%
02:01investment 600,000 not investment it is
02:09hello sales 830,000 500 government security it is investment 120,000
02:19reserves for debt 7,000 and 100,000 and the debtors 174,000
02:28building 600,000 bad debts 4,220 commission paid 14,400 and salaries 29,000
02:38purchase is 370,000 and in term dividend paid 15,000 ranked 9,600 and general
02:46expenses are 9,800 different just interest is equal to 10,000 the
02:52following adjustments were to be made and the stock on 31st March 2021 was
02:57estimated at P 200,000 closing stock for a dividend at 10% to be provided
03:04other than this dimension interest it is dividend dividend it means the profit
03:12the portion of the profit paying to this shareholders depositions on plant and
03:19machining at 10% and fixtures on 5% preliminary expenses to be written off
03:25totally written off it is a part of it's asset it is a capital expense
03:31it is 30,000 what to be transferred to general reserves the provision for bad
03:36debts to be maintained at 10% on secondary debtors first you are required
03:42to prepare the trading and profit and loss account and profit and loss of
03:45expression account for the year ended 31st March 2021 and the balance sheet as
03:50on that date so basically we have three requirements two is related to profit
03:57and loss count and the one is balance sheet so let's move to the solution the
04:02solution I have made in excel sheets so here is the solution so your self
04:10corporation trading and profit and loss count so particular the opening stock
04:15150,000 purchase is 370,000 wages 169,000 depreciation plant and machinery
04:23please collect this one spelling machinery because plant and machinery is
04:31directly involved in the production of the goods so I am taking this
04:35depreciation as a part of cost of goods sold so it will not be covered in the
04:41expenses so I will have written it in under the cost of goods sold portion are
04:47trading and profit and loss count fight and duty 26,000 and it is obtained how by
04:54multiplying 720,000 with 0.10 and fight and duty is equal to 26,200
05:02gross profit is the balancing figure of by subtracting from this amount look at
05:10this I am going to show this one how much amount is there 761,600 I am going
05:17to subtract it from sorry say 787,800 from this amount we will get this
05:28balance figure which is termed as gross profit which is equal to
05:32242,200 so like this gross profit on this side 242,200 interest income is
05:44receiving from investment made in government securities at 5% so 6,000 is
05:51here so now come to the indirect expenses I am going to be delete this
05:57one and director's fees 11,480 preliminary expenses we are going to
06:03totally write off means we are going to charge as expense to the profit and loss
06:07count indirect expenses commission paid 14,400 salaries for 29,000 and 9,600
06:15general expenses 9,800 debentures interest which is are already paid some
06:2210,000 and debenture interest at 10% 60,000 so depreciation fixed is equal to 720
06:33this is a depreciation and bad debts is equal to how we will get this bad debts
06:37so bad debts 4,220 plus new one at a rate of 10% which is equal to 17,400
06:46and minus 7,000 old one so profit balancing figure is 78,580 which will be
06:56transferred to the profit and loss preparation account one thing more I
07:00want to share with you here regarding the profit and loss preparation account
07:04is that it is totally related with the profit and distribution to the share
07:11equity so look at this is a last year profit balance carried on 29,000 as
07:16given in the information table so current year profit which has been come
07:21from the profit and trading profit and loss count so interim dividend which is
07:25a part of the tile balance extended table
07:32final dividend proposed it is obtained by paid up capital equity share capital
07:39paid up capital of 92,000.01 so please remember that I am going to take this
07:46point one of the share capital if paid up capital is more than which is termed
07:51as premium and premium capital share premium capital so we will not take into
07:57account that amount so we are going to on the face value nominal value of the
08:02share we are determined it then as the 30,000 has been transferred so I have
08:08written it here so the loss here in this case there is a loss 29,120
08:13which is a balancing figure of this account and this balancing figure will
08:19transfer to the balance sheet under the adding of equity and share capital and
08:25further subdivision reserves so come to the last requirement of this question
08:31balance sheet so asset is equal to current assets cash in hand and cash
08:36income cash advance and the debtor stock so 970 19,700 6,000 76,600 156 200
08:46thousand on the right-hand side the current liabilities and the creditors
08:55you see that the debtor is 150 because I have subtracted and the premium for
09:02doubtful debt which is equal to 17,400 from the entry debtor so that amount we
09:07are going to return here 156,600 so here interest liability against
09:15debentures so you can it is good to be right here so bills payable 76,000 per
09:34post dividend 92,000 which is also the part of this is profit and loss
09:44profession account here but here it is a become as a part of to distribute to
09:52this share capital order but here as a part of liability because we didn't pay
09:58this we just create a liability against this per post dividend so come to the
10:04total assets not non current asset affects as a built-in 600,000 plant and
10:09machinery 720,000 is a conventional way of writing negative values in the
10:17accounting system so 72,000 is depreciation which is subtracted from the cost of the
10:26plant and machinery and which might be the initial or book value of which
10:33equipment 8,000 and no depreciation is started here because no information
10:39given according the rate of office equipment pictures 14,000 14 14,400
10:44accumulated depreciation pictures 725 percent government securities 120,000
10:52and 6,000 is the income interest here 120,000 I think I have a machine here
11:01here which is achievable so goodwill also fixes a 50,000 and one thing we
11:13might have to name any expenses has been right up from here because of it has
11:18been written up and the charge as expressed in the income statement now
11:23come to the non current liabilities 600,000 10% differential if we get share
11:28capital or thrice capital 120 shares at rupees 10 which is equal to 1.2 million
11:35share issued and paid up capital 92,000 shares at rupees 10 means and now issued
11:43shares are at par value not at premium not at discount 920,000 reserve we have
11:49put as a reserve general reserves profit and loss count look at this from the
11:56information given in the table we already have is a 50,000 and we have
12:00transferred 30,000 from the profit so it will become 80,000 and often a loss
12:06count of the last third quarter last month is 29,420 so total is 90 and total
12:17970,580 which is equal to which is which is represent the equity and share
12:27capital total and we have a total liability and this one current liability
12:33current asset plus non current asset here here it is total liability which is
12:39including equity and share capital non current asset and current liability look at
12:47this both sides are equal so the solution is finished here so I hope you
12:54will find this solution useful and easy to understand but if you have any
12:58question you can ask me in the comment section or if you want to add something
13:03more from your side provide your suggestion in comment section as well
13:08but with logical arguments and last thing if you found any mistake regarding
13:13calculation please also correct it in the comment section for the benefit of
13:18all thanks for watching assalamu alaikum
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