Accountancy, asked by imrohank1, 5 months ago

Following balances for the year ended 31st March 2019 were extracted from the books of Shri Vikram Singh
Stock as on 1-4-2018 :
Radio ₹45000
Watches ₹21000
Sales :
Radio ₹294000
Watches ₹146000
Purchases :
Radio ₹225000
Watches. ₹115000

Salaries ₹12600
Publicity exp ₹8900
Rent rate and taxes ₹3200
Commission ₹10600
Miscellaneous expenses ₹5000
Interest received ₹400
Provision for bad debts ₹800

Prepare the department trading and profit and loss account for the year 31st March 2019 after taking into account the following :
1)Stock as on 31st March 2019 was:
Radio ₹30000
Watches ₹24000
2)An amount of ₹1200 out of sundry debtors of ₹16800 has to be written off as bad and the provision for the doubtful debts has to be increased there after to 10% of debts outstanding
3) following expenses are outstanding as on 31st March 2019:
Publicity ₹1300
Salaries ₹1200
Commission ₹1700
4) Provide 10% depreciation on furniture and fixtures of ₹12400
5) Revenue items to be allocated in the ratio of 2:1 as between radios and watches

Ignore fraction of a rupees in calculations






Answers

Answered by Anonymous
11

Explanation:

ANSWER

(i) REVALUATION A/C

Dr. Cr.

Particulars Amount Particulars Amount

To Provision for Doubtful Debts 1700 By Prepaid advertisement Expenses 1200

To A's Capital

(revenue expense) 2100 By B's Capital

(personal expenses) 2000

By Loss transferred to:

- A's Capital a/c

- B's Capital a/c

- C's Capital a/c

300

200

100

3800 3800

(ii) PARTNER'S CAPITAL A/C

Dr. Cr.

Particulars A B C D Particulars A B C D

To Revaluation a/c

(personal) 2000 By Balance b/d 60000 40000 40000

To Revaluation a/c

(loss) 300 200 100 By Cash a/c 40000

To Balance c/d 61800 37800 39900 50000 By Creditors 10000

By revaluation expenses 2100

62100 40000 40000 50000 62100 40000 40000 50000

(iii) BALANCE SHEET

Dr. Cr.

Liabilities Amount Assets Amount

Capital a/cs:

- A

- B

- C

- D

61800

57800

39900

50000 Land and Building 50000

Bills Payable 10000 Plant and Machinery 40000

Creditors 30000

(-) D's Capital (10000) 20000 Furniture 30000

Stock 20000

Prepaid Advertisement

Expenses 1200

Debtors 30000

(-) Provision for (1700)

Doubtful debts

(+) Bills receivable 4000

dishonoured 32300

Bills receivable 20000

Bank (10000+40000-4000) 46000

23................,.............

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