Question

Prepare the trading and profit and loss account and a balance sheet of M/s Shine Ltd. from the following particulars.






Account Title



Amount

Rs



Account Title



Amount

Rs





Sundry debtors



1,00,000



Bills payable



85,550





Bad debts



3,000



Sundry creditors



25,000





Trade expenses



2,500



Provision for bad debts



1,500





Printing and Stationary



5,000



Return outwards



4,500





Rent, Rates and Taxes



3,450



Capital



2,50,000





Freight



2,250



Discount received



3,500





Sales return



6,000



Interest received



11,260





Motor car



25,000



Sales



1,00,000





Opening stock



75,550













Furniture and Fixture



15,500













Purchases



75,000













Drawings



13,560













Investments



65,500













Cash in hand



36,000













Cash in bank



53,000

















4,81,310







4,81,310






Adjustments

1. Closing stock was valued Rs 35,000.

2. Depreciation charged on furniture and fixture @ 5%.

3. Further bad debts Rs 1,000. Make a provision for bad debts @ 5% on sundry debtors.

4. Depreciation charged on motor car @ 10%.

5. Interest on drawing @ 6%.

6. Rent, rates and taxes was outstanding Rs 200.

7. Discount on debtors 2%.

Answer 1

I think trading &p/L is right but doubt in balance sheet!!