M Ltd.
Statement of Company’s Financial Position
As at June 30, 2021
Particulars Note Amount (Tk.)Amount (Tk.)
Non-current assets:
Property, Plant & equipment 11,721,600
12% investment 5,889,600
Total non-current assets 17,611,200
Current assets:
Prepaid insurance premium 48,000
Closing inventory 4,260,000
Cash 352,000
Accounts receivable 5,190,000
Total current assets 9,850,000
Total assets 27,461,200
Equity & liabilities Amount Amount
Shareholder’s equity: (Tk.) (Tk.)
Share capital 12,000,000
General reserve 1 2,400,000
Retained earnings (806,800)
Total equity 13,593,200
Non-current liabilities:
10% Loan 4,800,000 4,800,000
Current liabilities:
Outstanding payroll 192,000
Outstanding rental expenses 96,000
8% bank overdraft 5,600,000
Accounts payable 2,400,000
Accrued interest on loan 280,000
Disputed unsettled claimed 4 500,000
Current liabilities 9,068,000
Total equity & liabilities 27,461,200
M Ltd
Statement of Comprehensive Income
For the year ended June 30, 2021
Particulars Note Amount (Tk.)
Revenue 10 15,168,000
Less. Cost of sales 4 10,532,000
Gross profit 4,636,000
Add. Other operating income -
Less. Distribution costs 8 1,890,000
Less. Administrative expenses 3 3,418,400
Profit/loss from operations (672,400)
Less. Finance cost 9 480,000
Add. Investment income 6 345,600
Profit/(loss) before tax (806,800)
Less. Income tax expense -
Profit/(loss)/Retained earnings for the
period
(806,800)
Note- 1: No income taxes charges as there is loss during the year.
Note- 2: As there is no profit during the year, would not able to transafer any fund to
General Reserve. .
Note: 1 Statement of Changes in Equity
Share General Retained
Particulars
Capital reserve Earnings
Opening Balance 12,000,000 2,400,000
Add. Profit during the year - (806,800)
Total 12,000,000 2,400,000 (806,800)
Note to the accounts
2. Property, Plant & Equipment: Lease hold Furniture Machinery Total
As per TB 3,840,000 1,584,000 7,200,000 ###
Less: Depreciation 384,000 158,400 360,000 902,400
3,456,000 1,425,600 6,840,000 ###
3. Administrative Cost:
Depreciation on lease hold property 384,000
Depreciation on furniture 158,400
Insurance premium 168,000
Less: Prepaid insurance (48,000)
Payroll expenses 1,008,000
Add: Outstanding payroll 192,000
Rental expenses 960,000
Add: Outstanding rental expenses 96,000
Disputed claim 500,000
3,418,400
4. Cost of Sales:
Opening inventory 2,040,000
Add. Purchase 12,220,000
Less: Included as packing cost (240,000)
Add: Depreciation on machinery 360,000
Carriage on purcahse 240,000
Labour 1,412,000
Less: Discount on purchase (288,000)
Less: Purchase returns (952,000)
Less. Closing inventory (4,260,000)
10,532,000
5. Investment:
As per trial balance 5,760,000
Add: Accrued interest 129,600
5,889,600
6. Investment income:
As per trial balance 216,000
Add: Accrued (57,60,000 x 12%)/2=3,45,600-2,16,000 129,600
345,600
7. Accounts receivable:
As per TB 5,280,000
Less: New bad debt allowance (90,000)
5,190,000
8. Distribution cost:
Add: New allowance for bad debts 90,000
Less: Old allowance for bad debts (240,000)
Promotional expenses 1,440,000
Packing cost 240,000
Carriage on sales 360,000
1,890,000
9. Finance cost
Interest on loan (As per TB) 200,000
Add: Accrued (48,00,000 x 10%)=480,000-2,00,000 280,000
480,000
10. Revenue:
Sales 15,504,000
Less: Sales Returns (336,000)
15,168,000
