1.
From the following particulars, prepare Trading Account for the year ending
31st December 2017 -
₹
Opening Stock
35,000
Purchase
65,000
Purchases Return
4.000
Sales
1.20,000
Sales Return
6.000
Wages
5,000
Cartage on Purchases
600
Excise Duty
9,000
Closing Stock
28,000
[Ans. Gross Profit 31,400
From the following informations
Answers
Answer:
Trading and Profit and Loss Account
as on 31st December,2011
Dr Cr
Particulars Amt. (Rs.) Particular Amt. (Rs.)
To Opening Stock 25,000 By Sales 2,76,000
To Purchase 1,80,000 (-) Return Inwards 7,000
2,69,000
(-) Return Outwards 2,000
1,78,000 By Closing Stock 45,000
To Wages 10,000
To Gross Profit c/d 1,01,000
3,14,000 3,14,000
To Bad Debts 1,000 By Gross Profit b/d 1,01,000
To Trade Expenses 2,400 By Provision for Bad Debts 4,000
To Printing and Stationery 2,000 By Interest 2,000
To Rent, Rates and Taxes 5,000 (-) New Provision 1,600
2,400
To Freight
4,000
To Discount Allowed 2,000
To Depreciation on Furniture and Fixture
1,000
To Depreciation on Plant Machinery
(4,200 + 900)
5,100
To Depreciation on Motor Car
5,100
To Manager's Commission
6,891
To Net Profit c/d
68,909
1,03,400 1,03,400
Working Note
1. Depreciation on Plant and Machinery Rs. 30,000 Machinery was purchased on 1 July, 2011. Hence, Dep on 70,000 (1,00,000 - 30,000) @ 6% = 4,200 and Dep on 36,000 @ 6% for six months = 900 = Rs.15,100
2. Profit Before Manager's Commission = (1,03,400 27,600) = 75,800
Manager is entitled to a commission @10% on the new profit after charging such commission = [75,800×
11
10
]=Rs.6,891
Balance Sheet
as on 31st December, 2011
Liabilities Amt. (Rs.) Assets Amt. (Rs.)
Capital 2,00,000 Sundry Debtors 80,000
(+) Net Profit
(-) Drawings 68,909
2,68,909
20,000
2,48,909 (-) Provisions for Bad Debts 1,600
78,400
Bank Overdraft
Creditors 12,000
60,000 Furniture and Fixture
20,000
Bills Payable 15,400 (-) Depreciation @ 5% 1,000
19,000
Manager's Commission Outstanding 6,891 Plants and Machinery 1,00,000
(-) Depreciation @ 6% (4,200 + 900) 51,000
94,900
Motor Car 51,000
(-) Depreciation @ 10 % 5,100
45,900
Cash in Hand 6,000
Bills Receivable 14,000
Investments 40,000
Closing Stock 45,000
3,43,200
3,43,200
Answer:
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