: 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.
(4) Khan had taken goods of Rs.10000 for his personal use. This amount has not been recorded in the accounts.
(5) Insurance expired Rs.100.
Required: Prepare Income Statement and Balance Sheet. (20)
Ans:
Answers
Answer:
Date V/R
No. Particulars L/F Amount
(Dr) Amount
(Cr)
Oct 1st – Cash a/c
To Capital a/c
Dr
–
–
80,000
80,000
[Being the amount received from Mr. Neel, the proprietor as his capital contribution vide receipt no:___ dated:__]
3rd – Goods/stock a/c
To Karl a/c
Dr
–
–
20,000
20,000
[Being the value of stock purchased from Mr.Karl on credit vide bill no:___ dated:__]
4th – Tarl a/c
To Goods/stock a/c
Dr
–
–
25,000
25,000
[Being the value of stock sold to Mr.Tarl on credit vide bill no:___ dated:__]
5th – Goods/stock a/c
To Cash a/c
Dr
–
–
25,000
25,000
[Being the value of stock purchased for cash vide bill no:___ dated:__]
7th – Cash a/c
To Goods/stock a/c
Dr
–
–
15,000
15,000
[Being the value of stock sold for cash vide receipt no:___ dated:__]
9th – Karl a/c
To Goods/stock a/c
Dr
–
–
2,000
2,000
[Being the value of stock returned to Mr.Karl vide bill no:___ dated:__]
10th – Furniture a/c
To Cash a/c
Dr
–
–
15,000
15,000
[Being the value of furniture purchased for cash from M/s ___vide bill no:___ dated:__]
11th – Karl a/c
To Cash a/c
Dr
–
–
12,000
12,000
[Being the amount paid to Mr. Karl vide voucher no:___ dated:__]
12th – Goods/stock a/c
To Tarl a/c
Dr
–
–
3,000
3,000
[Being the value of stock returned by Mr.Tarl vide bill no:___ dated:__]
14th – Drawings a/c
To Goods/stock a/c
Dr
–
–
3,000
3,000
[Being the amount of stock taken by Neel for Personal use vide bill no:___ dated:__]
15th – Cash a/c
To Tarl a/c
Dr
–
–
12,000
12,000
[Being the amount received to Mr. Tarl vide voucher no:___ dated:__]
16th – Cash a/c
To Loan from parl a/c
Dr
–
–
30,000
30,000
[Being the cash received from Mr. Parl as loan vide receipt no:___ dated:__]
17th – Salaries a/c
To Cash a/c
Dr
–
–
5,000
5,000
[Being the amount paid for Salaries vide voucher no:___ dated:__]
18th – Stationery a/c
To Cash a/c
Dr
–
–
1,000
1,000
[Being the value of Stationery purchased from M/s___ for cash vide bill no:___ dated:__]
19th – Loan from parl a/c
To Cash a/c
Dr
–
–
18,000
18,000
[Being the amount paid to Mr. Parl for repayment of loan vide voucher no:___ dated:__]
20th – Cash a/c
To Interest a/c
Dr
–
–
4,000
4,000
[Being the interest received in cash from M/s ____vide voucher no:___ dated:__]
Explanation:
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