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Financial Statements of a Company 1.13
Additional Information:
Closing Inventory: Materials ` 1,25,000; Work-in-Progress ` 65,000; Finished Goods
` 1,40,000. Provide for Tax @ 35%.
Solution: West Coast Ltd.
STATEMENT OF PROFIT & LOSS for the year ended 31st March, 2024
Particulars Note Year Ended
No. 31st March,
2024 (`)
I. Revenue from Operations 1 43,00,000
II. Other Income 2 7,500
III. Total Revenue (I + II) 43,07,500
IV. Expenses
Cost of Materials Consumed 3 21,25,000
Changes in Inventories of Finished Goods and Work-in-Progress 4 (5,000)
Employees Benefit Expenses 5 13,80,000
Finance Costs 6 70,000
Depreciation and Amortisation Expenses 1,50,000
Other Expenses 7 2,57,500
Total Expenses 39,77,500
V. Profit before Tax (III – IV) 3,30,000
VI. Less: Tax @ 35% 1,15,500
VII. Profit after Tax 2,14,500
Notes to Accounts
Note Particulars Year Ended
No. 31st March,
2024 (`)
1. Revenue from Operations
Sales 42,50,000
Sale of Scrap 50,000
43,00,000
2. Other Income
Dividend 7,500
3. Cost of Materials Consumed
Opening Inventory of Materials 1,50,000
Add: Purchases of Materials 21,00,000
22,50,000
Less: Closing Inventory of Materials 1,25,000
21,25,000
4. Changes in Inventories of Finished Goods and Work-in-Progress
(a) Finished Goods
Opening Inventory 1,25,000
Less: Closing Inventory 1,40,000
(15,000)
(b) Work-in-Progress
Opening Inventory 75,000
Less: Closing Inventory 65,000
10,000
Total (a + b) (5,000)