Answer Happy

Balance sheet of a trader on 31st March, 20X1 is given below: Assets Liabilities Capital 60,000 65,000 Property, Plant and Equipment Profit and Loss Account 25,000 Stock 30,000 10% Loan 35,000 Trade receivables 20,000 Trade payables 10,000 Deferred costs 10,000 Bank 5,000 1,30,000 1,30,000 additional information: (a) the remaining life of property, plant and equipment is 5 years. the pattern of use of the asset is even. the net realisable value of property, plant and equipment on 31.03.x2 was $ 60,000. (b) the trader's purchases and sales in 20x1-x2 amounted to $ 4 lakh and $ 4.5 lakh respectively. (c) the cost and net realisable value of stock on 31.03.x2 were $ 32,000 and $ 40,000 respectively. (d) expenses (including interest on 10% loan of $ 3,500 for the year) amounted to$ 14,900. (e) deferred cost is amortised equally over 4 years. (f) trade receivables on 31.03.x2 is $ 25,000, of which $ 2,000 is doubtful. collection of another $ 4,000 depends on successful re-installation of certain product supplied to the customer. (g) closing trade payable is $ 12,000, which is likely to be settled at 5% discount. (h) cash balance on 31.03.x2 is $ 37,100. (i) there is an early repayment penalty for the loan $ 2,500. you are required to prepare profit and loss accounts and balance sheets of the traderin both cases (i) assuming going concern (ii) not assuming going concern.