Question 12.
Following Trial Balance were extracted from the books of Ram as on 31st March, 2018:
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after taking into account the following:
(a) Depreciation is to be written off as follows: Leasehold premises 5%. Plant and Machinery 10%.
(b) Write off ₹ 5,000 as further Bad Debts and make a Provision for Doubtful Debts equal to ₹ 5,000.
(c) Wages amounted to ₹ 5,700 have become due but have not been paid.
(d) Wages include ₹ 10,000 incurred on installation of new machine. Machine was installed on 1st April, 2017.
(e) The value of stock on 31st March, 2018 was ₹ 1,49,200.
(f) Unexpired premium amount to ₹ 6,800 is to be carried forward to the next year.
Answers
Answer:
Hope you have understood.
Trading and P&L A/c with Balance sheet as at 31.3.2018
Explanation:
In the Books of Ram
Trading and P&L A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Opening Stock 114600 By Sales 1480200
To Purcharses 779700 (-18200)
(-42400) By Closing Stock 149200
To Wages 81300
(-10000+5700)
To Carriage Inwards 23100
To Light and Water 79500
To Gross Profit(bal.) 551200
1629400 1629400
To Depreciation: By Gross Profit 551200
Leasehold Premises 12500 By Discount Rec. 1800
Plant and Machinery 25000
To Bad debts 22600
(5000+50000-42400)
To Rent,Rates and Ins. 62600
(-6800)
To Salaries 161500
To Office Expenses 95200
To Carriage outwards 32400
To Net Profit 141200
553000 553000
Balance sheet
as at 31.3.2018
Notes to A/cs Amount(Rs.)
Non-Current Assets:
Leasehold Premises 237500
Plant and Machinery 225000
Office Furniture 35000
Current Assets:
Closing Stock 149200
Sundry Debtors 334700
Bills Receivable 12400
Cash at Bank 124000
Cash in Hand 22100
Prepaid Insurance 6800
Total(A) 1146700
Non-Current Liabilities:
Capital 971200
(-70000+141200)
Current Liabilities:
Creditors 169800
Wages Outstanding 5700
Total(B) 1146700