The following is the Trial Balance of Radiant Limited as on 31 st March, 2026: Particulars Dr. (₹/ lakhs) Particulars Cr. (₹/ lakhs) Land at Cost…

CA Intermediate · Advanced Accounting · MTP · September 2026
The following is the Trial Balance of Radiant Limited as on 31 st March, 2026: Particulars Dr. (₹/ lakhs) Particulars Cr. (₹/ lakhs) Land at Cost 440 Equity Share Capital (Shares of ₹ 10 each) 600 Cash in hand 15 10% Debentures of ₹100 each 400 Plant & Machinery at Cost 1,540 General Reserve 260 Trade Receivables 200 Profit & Loss A/c (Balance on 01-04-2025) 144 Inventories (31.3.2026) 172 Securities Premium Reserve 80 Cash at Bank 27 Sales 1,400 Adjust Purchases 640 Trade Payables 100 Salary and Wages 120 Provision for Depreciation 344 Administration Expenses 60 Miscellaneous Receipts A/c 8 Selling Expenses 54 Provision for Doubtful Debts (1.4.2025) 4 Interim Dividend Paid 42 Interim on Debentures (Paid up to 31 st December, 2025) 30 Total 3,340 Total 3,340 Additional Information: (i) Closing Stock is more than Opening Stock by ₹ 55 lakhs. (ii) The Company declared a final dividend of 10% on 5 th April, 2026. (iii) Miscellaneous Receipts A/c of ₹8 lakhs represents amount received from the sale of an item of Machinery on 1 st April, 2025. Cost of the Machinery was 20 lakhs and the Accumulated Depreciation thereon being ₹ 16 lakhs. The balance of Plant and Machinery given in the Trial Balance is before adjustment of sale of machinery. (iv) Provision for Doubtful Debts is to be made at 5% on Trade Receivables. (v) Depreciation is to be provided on Plant & Machinery at 10% on cost. (vi) Provision for Income tax is required to be made @25% You are required to prepare the Statement of Profit and Loss for the year ended 31 st March, 2026 of Radiant Limited as per Schedule III of the Companies Act, 2013.

Suggested Answer and Working Notes:

Radiant Limited Statement of Profit and Loss for the year ended 31 March, 2026 Particulars Note No. Amount (₹ In Lakhs) Revenue from Operations 1,400 Other income 4 Total Income 1,404 Expenses: Purchases 695 Changes in Inventory (55) Employees Benefits Expenses 120 Finance Costs 40 Depreciation and Amortization Expenses 152 Other Expenses 120 Total Expenses 1,072 Profit before Tax 332 Tax Expenses 83 Profit for the period 249 Working Notes 1. Profit on Sale of Machinery Particulars ₹ In Lakhs Sale Value 8 Less Book Value (20-16) 4 Profit on Sale of Machinery 4 2. Depreciation on Plant and Machinery Particulars ₹ In Lakhs Opening Balance 1,540 Less Sold Off 20 Balance 1,520 Depreciation 10% 152 3. Other Expenses Particulars ₹ In Lakhs Administration Expenses 60 Selling Expenses 54 Provision for Doubtful Debts (10-4) 6 Total 120

Topics: Preparation of Financial Statements

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