Particulars
Purchases
From the following balances taken from the books of Jasmeet & Co. and dujustments
prepare Trading and Profit and Loss Account for the year ending 31st March, 2020
and Balance Sheet as at that date:
Particulars
I
Opening Stock
15,000 Rent
.4,000
1,09,000 Rent Outstanding
600
Sales
1,80,000 Provision for Doubtu Debts
1,000
Manufacturing Wages
8,000 Furniture
5,000
Fuel
, Power and Light
12,000 (Purchased on 1st October, 2019 for ? 1,000)
Salaries
11,000 Bills Receivable
6,000
Bad Debs
500 Bils Payable
1,600
Income Tax
5,500 Machinery
72,000
Loan to Paramat 10% pa (1st April, 2019) 5,000 Sundry Debtors
28,000
Interest on Loan to Param
300 Sundry Creditors
13,000
Commission Received
4,500 Capital
1,00,000
Cash in Hand
20,000
Adjustments
:
(0
) Closing Stock at cost was † 35,000. Its net realisable value (market value) was 30,000.
(ü) Write off further * 500 as bad debt. Also, maintain a Provision for Doubtful Debts
@5% on Sundry Debtors.
(iii) Create a provision of 2% for discount on debtors.
(iv) Commission received includes # 3,000 received in advance.
(u) Depreciate furniture by 10% p.a.
(vi) Salaries for the month of March, 2020 were outstanding,
Answers
Answer:
Following are the balances extracted from the books of Manish on 31st March, 2019:
₹
₹
Capital
1,90,000
Cash at Bank
26,000
Drawing
7,000
Salaries
8,000
Plant and Machinery
1,20,000
Repairs
1,900
Delivery Vehicle
26,000
Stock on 1st April, 2018
16,000
Sundry Debtors
36,000
Rent
4,500
Sundry Creditors
26,000
Manufacturing Expenses
1,500
Purchases
20,000
Bills Payable
23,500
Sales
42,000
Bad Debts
5,000
Wages
8,000
Carriage
1,600
Prepare Trading and Profit and Loss Account and Balance Sheet as at 31st March, 2019 after following adjustments are made:
(i) Closing Stock was ₹ 16,000.
(ii) Depreciate Plant and Machinery @ 10% and Delivery Vehicle @ 15%.
(iii) Unpaid Rent amounted to ₹ 500.
ANSWER:
Trading Account
for the year ended March 31, 2019
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Opening stock
16,000
Sales
42,000
Purchases
20,000
Closing Stock
16,000
Wages
8,000
Manufacturing Expenses
1,500
Carriage
1,600
Gross Profit (Balance Figure)
10,900
58,000
58,000
Profit and Loss Account
for the year ended March 31, 2019
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Salaries
8,000
Gross Profit
10,900
Repairs
1,900
Net Loss (Balancing Figure)
24,900
Rent
4,500
Add: Unpaid Rent
500
5,000
Bad Debts
5,000
Depreciation on:
Plant and machinery
12,000
Delivery Vehicle
3,900
15,900
35,800
35,800
Balance Sheet
as on March 31, 2019
Liabilities
Amount
(₹)
Assets
Amount
(₹)
Capital
1,90,000
Fixed Assets
Less: Drawings
(7,000)
Plant and Machinery
1,20,000
Less: Net Loss
(24,900)
Less:10% Deprecation
(12,000)
1,08,000
1,58,100
Delivery Vehicle
26,000
Less:15% Depreciation
(3,900)
22,100
Current Liabilities
Sundry Creditors
26,000
Current Assets
Bills Payable
23,500
Closing Stock
16,000
Unpaid Rent
500
Sundry Debtors
36,000
Cash at Bank
26,000
2,08,100
2,08,100
HOPE THIS IS HELPFUL TO YOU
Explanation:
jasmeet and com. final account