Khan presented the following trial balance at the end of financial year 2006.
Cash 22500
Bank 31000
Stock 65020
Discount 920 850
Rent 9500
Fixtures and furniture 14830
Advertisement expenses 5370
Heat and light 1160
Wages 600
Insurance 260
Debtors and Creditors 25600 29520
Capital 125000
Drawings 8924
Loan 80000
General expenses 15800
Fuel expenses 25610
Salaries 42000
Purchases and Sales 56000 89724
Total amount 325094 325094
Other data:
(1) Stock was valued at Rs.98230 on December 31, 2006.
(2) Wages owing Rs.8250.
(3) Depreciation charges on fixture and fitting at 10% on cost.
Note: Please give answer as soon as possible its urgent.......
Answers
Trading and Profit and Loss Account
as on 31st December,2011
Dr Cr
Particulars Amt. (Rs.) Particular Amt. (Rs.)
To Opening Stock 2,26,000 By Sales 6,80,000
To Purchase 4,40,000 (-) Return Inwards 10,000
6,70,000
(-) Return Outwards 1,5000
4,25,000 By Closing Stock 30,000
To Freight Inwards 3400
To Heat and Power 8,000
To Gross Profit c/d 37,600
7,00,000 7,00,000
To Salary and Wages 5,000 By Gross Profit b/d 37,600
To Trade Expenses
3,300
By Interest Received
20,000
To Legal Expenses 3,000
To Postage and Telegram 1,000
To Bad Debts
6,500
(+)Provision 1,250
7,750
To Insurance
3,500
(-) Prepaid 600
2,900
To Depreciation on Building 5,000
To Depreciation on Motor Van
3,000
To Manager's Commission
[26,650×
105
5
]
1,269
To Net Profit 25,381
57,600 57,600
Balance Sheet
as on 31st December, 2011
Liabilities Amt. (Rs.) Assets Amt. (Rs.)
Capital 3,00,000 Machinery 22,000
(+) Net Profit
(-) Drawings 25,381
3,75,381
3,00,381 Investments
Buildings
40,000
1,00,000
Creditors 50,000 (-) Depreciation Motor Van
5,000
30,000
95,000
Bills Payable 63,700 (-) Depreciation @10%
3,000
27,000
Manager's Commission
1,269 Cash in Hand
Cash at Bank
79,000
98,000
Sundry Debtors 25,000
(+) Provision for Bad Debts 1,250
23,750
Prepaid Insurance 600
Closing stock 30,000
4,15,350 4,15,350
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