below is the Trial Balance of M/s Seeta and Geeta as on 31st March, 2010. You are
required to prepare Trading and Profit and Loss Account for the year ended 31st March,
2010 and Balance Sheet on that date :
Trial Balance as on 31st March, 2010
Debit Balance Amt. Credit Balance Amt.
Rs. Rs.
Current Account – Geeta 4,000 Capital Accounts – Seeta 1,20,000
Opening Stock 88,000 Geeta 1,20,000
Purchases 1,76,000 Current Account – Seeta 5,000
Wages 23,500 Sundry Creditors 1,03,000
Salaries 15,000 Bank Overdraft 60,000
Office expenses 8,000 Sales 3,08,000
Bank charges 2,600
Legal charges 3,000
Machinery 90,000
Land and Building 1,30,000
Interest 3,600
Export Duty 3,800
Bad Debts 4,000
Sundry Debtors 82,000
Travelling Expenses 3,200
Electricity charges 2,300
Furniture 35,000
Cash in Hand 2,000
8% Debentures (Purchased on
1.10.2009)
40,000
7,16,000 7,16,000
Adjustment :
1. Stock on hand on 31st March, 2010 was valued at Rs. 80,000.
2. Goods costing Rs. 16,000 were destroyed by fire and Insurance company admitted a
claim of Rs. 13,000.
3. Provide for outstanding expenses : Salaries Rs. 3,000, Wages Rs. 2,400.
4. Depreciate Machinery at 10% p.a. and Land and Building at 5% p.a.
5. Create Reserve for Bad and Doubtful Debts at 5% on Sundry Debtors.
6. Legal charges paid in advance Rs. 1,200.
7. Provide interest on capital at 8% p.a.
Answers
Answer:
Explanation:
Trading Account
Opening stock 88000 Sales 308000
Purchases 176000 Closing stock 80000
Wages 23500 Goods destroyed 16000
O/s wages 2400
Gross profit 114100
404000 404000
Profit and loss A/c
salaries 15000 Gross profit 114100
O/s Salaries 3000 Accrued interest 1600
Office expenses 8000
Bank charges 2600
Legal charges 3000
(less) prepaid 1200
Interest 3600
B/d 4000
Export duty 3800
Add: Reserve 4100
Travelling expenses 3200
Electricity charges 2300
Goods destroyed 3000
Land and building 6500
Machinery 9000
Interest on capital
Seeta 9600
Geeta 9600
Seeta current A/c 13300
Geetas current A/c 13300
115700 115700