Eps Question

FClass work question
17th July 2013

XYZ Ltd. , a trading company, provides the following information about its transactions and events during 2012-13.

1. Issues 10,00,000 equity shares of Rs. 10 each at a premium of Rs. 20.
2. Raised 12% Term Loan amounting to Rs. 100 lacs on 2 nd May 2012 Interest is paid on 30/360 day count basis.
3. Purchased equipment amounting to Rs. 80 lacs ; useful life 10 years Purchased furniture amounting to Rs. 20 lacs ; useful life 5 years
4. Purchased goods including 4 % VAT Rs. 832 lacs . VAT is non-refundable. Cash 50% , credit 50% Payment to creditors 90% of dues.
5. Expenses Rs. 100 lacs
6. Salaries Rs. 200 lacs , TDS 20 lacs TDS deposited 19 lacs
7. Sold goods Rs. 1680 lacs inclusive of 5% VAT Cash 50% , credit 50% Collection of receivables 80%. Receivables overdue as on 31.3.2013 beyond operating cycle Rs. 10 lacs The company has no information about collection of the overdue receivables. It proposes to create a provision for doubtful debts Rs. 3 lacs VAT fully deposited
8. Interest on Term Loan paid on 31 March 2013
9. Stock in trade Rs. 80 lacs
10. Loans given to employees Rs. 10 lacs
11. Advance to suppliers Rs. 5 lacs
12. Advance from customers Rs. 3 lacs
13. Advance tax Rs. 150 lacs
14. Provision for tax – 30% basic tax , 5% surcharge on tax and 3% education cess
Income tax law does not allow to charge provision for doubtful debts as expense.
Refer to Depreciation rate as per Income Tax Rules for income tax depreciation.
Show journal entries , Cash Book ( Bank Column only), Trial Balance