A company was incorporated on 1st January, 2014. Its financial year will be _________.

31st March, 2014

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31st March,2015

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31st March,2016

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31st March,2017

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Solution

The correct option is A 31st March,2015
Option B is Right.
Usually, the financial year of a company consists of 12 months. However, in some cases, it may not be so. In the case of a newly incorporated company, financial statements have to be prepared from the date of incorporation of the company till the year-end date of the financial year which may not be of 12 months.

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Trial Balance
as on 31st March, 2016
$\begin{matrix} Name of Account & Debit (Rs.) & Credit (Rs.) Capital A/c & 30, 000 Stock A/C (1st April, 2015) & 6, 000 Cash at Bank & 3, 000 Cash in Hand & 1, 320 Machinery A/c & 18, 000 Furniture and Fittings A/c & 4, 080 Purchases A/c & 45, 000 Wages A/c & 30, 000 Fuel and Power A/c & 9, 000 Factory Lighting A/c & 600 Salaries A/c & 21, 000 Discount Allowed A/c & 1, 500 Discount Received A/c & 900 Advertising A/c & 15, 000 Sundry Office Expenses A/c & 12, 000 Sales A/c & 1, 50, 000 Sundry Debtors & 25, 500 Sundry Creditors & 11, 100 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 92, 000 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 92, 000 - --------- - - --------- - \end{matrix}$

Closing stock was valued at Rs. 8,100

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