https://file.aiquickdraw.com/mathbot/file/1729448329004cowflgud.jpg

The image shows a Trial Balance of Birla Cement Company as of 31st March 2018. The particulars and their corresponding values are listed on both the debit and credit sides.

### Birla Cement Company
#### Trial Balance (as on 31st March 2018)

**Debit Side:**
- Inventory: ₹3,40,000
- Furniture: ₹1,00,000
- Discount: ₹20,000
- Loan to Directors: ₹40,000
- Advertisement: ₹10,500
- Bad Debts: ₹17,500
- Commission: ₹60,000
- Purchases: ₹11,59,500
- Plant & Machinery: ₹4,30,000
- Rent: ₹12,500
- Current Account: ₹22,500
- Cash: ₹4,000
- Interest on Bank Loan: ₹58,000
- Preliminary Expenses: ₹5,000
- Fixtures: ₹1,50,000
- Wages: ₹4,50,000
- Advertisement Expenses: ₹42,000
- Freehold Land: ₹7,73,000
- Tools & Equipment: ₹1,22,500
- Goodwill: ₹1,32,500
- Trade Receivable: ₹2,20,000
- Dealer Aids: ₹10,500
- Insurance: ₹15,000
- Trade Expenses: ₹36,000
- Freight: ₹27,000
- Debenture Interest: ₹10,000
- **Total (Debit): ₹42,67,500**

**Credit Side:**
- Equity Shares (@₹5): ₹12,50,000
- 11% Debentures: ₹2,50,000
- Bank Loan: ₹3,22,500
- Trade Payable: ₹1,40,500
- Sales: ₹21,34,000
- Rent Received: ₹23,000
- Transfer Fees: ₹5,000
- P&L A/C: ₹69,500
- Depreciation: Not listed
- Provision for Machinery: ₹73,000
- **Total (Credit): ₹42,67,500**

#### Adjustment:
- **Closing stock on 31st March 2018** was ₹4,11,500.

Would you like to go over the preparation of the Income Statement and Balance Sheet, or need more detailed assistance with any part?

Here are some follow-up questions you may consider:
1. What adjustments should be made for depreciation and closing stock?
2. How do you prepare a Profit and Loss account from this trial balance?
3. Can you explain the significance of certain accounts like "Provision: Machinery" and how they are treated in financial statements?
4. How do you balance out debits and credits when preparing final accounts?
5. What method should be used to adjust preliminary expenses?

**Tip**: When preparing financial statements, ensure that all adjustments such as closing stock and depreciation are correctly applied before balancing out accounts.

Prepare an Income Statement and Balance Sheet for Birla Cement Company based on the Trial Balance as of 31st March 2018, including adjustments for closing stock.

Learn how to prepare an Income Statement and Balance Sheet from a trial balance for Birla Cement Company, as of 31st March 2018, following adjustments for closing stock and other key items. This problem covers financial accounting principles and formulas, suitable for college-level accounting students.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation