Accountancy, asked by jassi127, 10 months ago

From the following Trial Balance of Sh Ram Sharan, prepare Trading and Profit & Loss

Account for the year ended 31st December, 2018 and Balance Sheet as on that date:



Dr. Rs. Cr. Rs.

Purchases and Sales 3,00,000 5,00,000

Returns Inwards 15,000

Returns Outwards 9,000

Carriage 12,000

Wages and Salaries 58,000

Trade Expenses 2,800

Rent 33,000

Insurance 1,200

Audit Fees 2000

Debtors and Creditors 85,000 62,000

Bills Receivable and Bills Payable 3,300 2,300

Printing and Advertising 5,900

Commission 5,000

Opening Stock 30,000

Cash in Hand 12,800

Cash in Bank 26,800

Bank Loan 20,000

Interest on Loan 1,500

Capital 2,46,000

Drawings 21,000

Fixed Assets 3,00,000

8,77,300 8,77,300



Adjustments:-

1. Stock at the end Rs. 50,000

2. Depreciate Fixed Assets by 8%

3. Commission earned but not received amounts to Rs. 500

4. Rent received in advance Rs. 3300

5. Allow 6 % interest on Capital and charge Rs. 1000 as interest on Drawings.​

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Answers

Answered by Afreenakbar
0

Answer:

Trial Balance of Ram Sharan, prepare Trading and Profit & Loss

Explanation:

Working Notes:

WN1: Calculation of Amount of Depreciation

Depreciation on Machinery=40,000×10100=Rs 4,000Depreciationon Furniture=5,000×5100=Rs 250

WN2: Calculation of Provision for Doubtful Debts

Provision for Doubtful Debts==(Sundry Debtors−Sale on Approval Basis)×Rate100(20,600−7,200)×5100=Rs 670

Depreciation is charged on fixed assets, it is the normal wear and tear in the value of fixed asset.

Fixed Asset like plant and machinery, land and building, furniture and fittings tend to lose their utility for the business operation with the usage, with the passage  of time, thus in decline of quality and quantity of fixed asset is known as deprecation.

To learn more Depreciation

https://brainly.in/question/15401602

https://brainly.in/question/9192209

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