Balance Sheet of rag Trading Co. on 31st March, 20X1 is given below: Liabilities Amount Assets Amount Capital 50,000 Pro

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Balance Sheet Of Rag Trading Co On 31st March 20x1 Is Given Below Liabilities Amount Assets Amount Capital 50 000 Pro 1 (280.71 KiB) Viewed 47 times

Balance Sheet of rag Trading Co. on 31st March, 20X1 is given below: Liabilities Amount Assets Amount Capital 50,000 Property, Plant and Equipment 69,000 Profit and Loss A/c 22,000 Stock in Trade 36,000 10% Loan 43,000 Trade Receivables 10,000 Trade Payables 18,000 Deferred Expenditure 15,000 Bank 3,000 1,33,000 1,33,000 additional information: (i) remaining life of property, plant and equipment is 5 years with even use. the net realizable value of property, plant and equipment as on 31st march, 20x2was $ 64,000. (ii) firm's sales and purchases for the year 20x1-x2 amounted to $ 5 lacs and $ 4.50 lacs respectively. (iii) the cost and net realizable value of the stock were $ 34,000 and $ 38,000 respectively. (iv) general expenses for the year 20x1-x2 were $16,500. (v) deferred expenditure is normally amortized equally over 4 years starting from f.y. 20x0-x1 i.e. $5,000 per year. (vi) out of trade receivables worth $10,000, collection of $4,000 depends on successful re-design of certain product already supplied to the customer. (vii) closing trade payable is $10,000, which is likely to be settled at 95%. (viii) there is pre-payment penalty of $2,000 for bank loan outstanding. prepare profit & loss account for the year ended 31 st march, 20x2 by assuming it is not a going concern.