Question

from the following Balance of Mr. Shiva prepare manufacturing Account Trading account and profit & loss account for the year ended 31st March, 2016 and Balance Sheet as on the date
(16)
Trial Balance of Mr. Shiva as on 31st March, 2016
creditors
71 000
Machinery
60.000
Opening Stock Raw Material
26.000
Opening Stock Work in Progress
2.000
Opening Stock Finished Goods
30.000
Purchase of Raw Matenal
2,80.000
Cariage Inward on Raw Material
5.000
Direct Wages
56,000
Factory Rent
27 000
Drawings
30.000
Sales
5,00,000
Cash at Bank
19.000
Salaries
9.000
Discount Allowed
7.000
Capital Account
1,00,000
Sundry Debtors
1,00.000
Total
6,71.000 6.71.000
Following further information is provided
1. Closing Stock as on 31st March, 2016 : Raw Material 7 32,000, Work-in-Progross ? 4.000,
Finished Goods ? 35.000,
2. depreciate Machinery @ 10% p.a.
3. On 1st January, 2016, their was a fire in the godown of Mr. Shiva, destroying finished goods
worth € 12,000, Insurance company admitted the claim of 8 8,000. This transaction was not
recorded in tho books.
4. Provide Reserve for Doubtful Debts @ 5% on Sundry Debtors,
​

Answer 1

Answer:

Balance of Mr. Shiva prepare manufacturing Account Trading account and profit & loss

Explanation:

Accounting is also known by the name of historical accounting because the transactions and events are logged in the books of accounts on the basis of historical figures.

The accrual principle of accounting states that revenues realised in cash and expenses paid in cash are not used to determine a year's profit or loss.

cash in that calendar year. There might be certain receipts and costs in the current year that have a tenuous connection to either the year before or the year after. Additionally, there can be current-year incomes and expenses that have not yet been recorded in the books of account.

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