Question

10. From the following balances extracted from the books of Mr. Rati Ram Saboo and the
subjoined information, you are required to prepare the Profit and Loss Account for the
year ended on 31st March, 2007 and also the Balance Sheet as on that date :
Dr.
Cr.
Rs.
Rs.
Stock on April 1, 2006
60,500
Purchases & Sales T
90,300
1,37,200
Returns
2,200
1,300
Capital Account B
30,000
Drawings Account B
4,500
Land & Buildings B
30,000
Furniture & Fittings B
8,000
Sundry Debtors & Creditors 3
25,000
45,000
Cash in Hand B
3,500
Investments B
10,000
Interest 3
-500
Commission
:P
Direct Expenditure p
3,000
Postage, Stationery & Phones P
7,500
Fire Insurance Premium 3
2,500
Salaries
2,000
Bank Overdraft B
11,000
40,000
2,57,000
2,57,000
(a) Closing Stock on 31st March, 2007 was valued at Rs. 65,000. Goods worth
Rs. 500 are reported to have been taken away by the proprietor for his personal use at
home during 2000-2006. (b) Interest on Investments Rs. 500 is yet to be received while
Rs. 1,000 of the commission received is yet to be earned in 2006-07. (c) Rs. 500 of the
& fire insurance premium paid is in respect of the quarter ending 30th June, 2007. (d)
Salaries Rs. 1,000 for March 2007 and Bank Overdraft interest estimated at Rs. 2,000
have to be recorded as outstanding charges. (e Depreciation is to be
& Buildings @ 5% and on Furniture and Fitting @ 10%. (1) Make provision for doubtful
e debts @ 5% of Sundry Debtors
. (g) Rs. 10,000 claim against Mr. Rati Ram Saboo not
acknowledged debt as yet.
Ans. IG.P. Rs. 43,500; N.P. Rs. 24,950; B/S Total Rs. 1,38,9501
11. The following balances were extracted fro
provided on
Land
March 07​

Answer 1

Answer:

March land debt against net rati sabbo sundary

Answer 2

trial profit and loss account