Question

a merchant to keeps his books on single entry system request you to prepare his trading profit and loss for the year ending 30-9- 2020 and the balance sheet as on that date
summary of cash book for 2019-2020
bank overdraft on 1-10-2019 rupees ₹7400
drawings ₹3000 salary ₹4500 staff salary e ₹3500 trad expenses ₹2000 wages ₹15500 paid to supplier ₹25000 cash received from debtors ₹60000 cash sales ₹5000 balance at bank as on 30 -9- 2020 ₹ 4000 cash in hand 30-9 2020 ₹100
other assets and liabilities 1-10-2019 and 30-9-2020
stock ₹22000 ₹ 19000
debtors ₹53000 ₹88000
creditors ₹15000 ₹19500
machinery ₹20000 ₹20000
furniture ₹1400 ₹1400
other information
make provision for doubtful debts at 5% on debtors
depreciate machinery by 20%








​

Answer 1

Answer:

the merchant account saves 15000 rupees