From the followng balances extracted from the book of Ms Riyadh Traders
on March 31, 2020. You are requested to prepare the trading and profit and
loss account and a balance sheet as on this date
Amount
Rs
Pehases and Sales
80,000
600
10,000
40.000
200
6,000
4.000
500
Dack and cleaning charges
5.000
2.000
40.000
Cap
Debtors and Creditors
7.000
2000
6,000
3.000
6.000
4.000
43,000
Pa
Land and Machinery
Donations and Chanty
Sales cobected
Pumature
1.000
11.300
1.36.600
1.36.600
Adjustments
(a) Interest on drawings @ 5% and interest on capital @ 10%.
(b) Land and Machinery is depreciated at 20%
(C) Interest on investment @ 6%
(d) Prepaid rent Rs 100
(e) Charge 10% depreciation on furniture. Closing stock was Rs 2,000
Answers
Answer:
here it is your answer
Explanation:
Trading and Profit and Loss Account
as on 31st March,2010
Dr Cr
ParticularsAmt. (Rs.)ParticularAmt. (Rs.)To Opening Stock10,000By Sales80,000To Purchase40,000(-) Sales Return 200
79,800(-) Purchase Return600
39,400By Closing Stock2000To Wages6,000To Dock and Clearing Charges
4,000
To Gross Profit c/d22,400
81,80081,800To Donation and Charity
600By Gross Profit b/d22,400To Interest on Capital
2000By Interest on Drawings
140To Depreciation on Furniture
565By Interest on Investment
360To Depreciation on Land and Machine
2,150By Miscellaneous Income
6,000To Lighting
500By Rent Received2,000To Net Profit
24,985(-) Unexpired Rent100
1,900
30,800 30,800
Balance Sheet
as on 31st March, 2010
LiabilitiesAmt. (Rs.)AssetsAmt. (Rs.)Capital40,000 Furniture11,300(+) Interest on Capital
(+) Net Profit
(-) Drawings2,000
42,000
24,985
66,985
2,000(-) Depreciation @5%
565
10,735(-) Interest
140Land and Machinery
43,000Unexpired Rent100(-) Depreciation @ 5%
Investment2,150
40,850
6,000
Sales Tax Collected
1,000(+) Interest @ 6%
360Creditors
7,000Debtors6,000Cash3,000Patents4,000
Closing Stock2,00072,945 72,945
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