Question

From the following figures prepare the Trading and Profit and Loss Account
for the year ended 31st march 2019 and the balance sheet as at that date:- ​

Answer 1

Answer:

Some Working Notes:-

Explanation:

Working Note:-

Calculation of Depreciation:-

Depreciation on Furniture = 20,000 x 15% = Rs. 3,000

Depreciation on Motor Car = 1,50,000 x 20% = Rs. 30,000

Calculation of Provision for Doubtful Debts:-

Provision Doubtful Debts = Sundry Debtors — Further Bad Debts x Rate

Provision Doubtful Debts = 82,000 — 2,000 x 5%

Provision Doubtful Debts = Rs. 4,000