Question 15.
Following is the Trial Balance of Mr. Bharat on 31st March, 2018.
Following adjustments are to be made:
(a) Stock on 31st March, 2018 – ₹ 52,000.
(b) Three months factory lighting and heating due but not paid – ₹ 300.
(c) 5% depreciation to be written off on furniture.
(d) Write off further Bad Debts – ₹ 700.
(e) Provision for Doubtful Debts to be increased to ₹ 3,000 and Provision of Discount on Debtors @ 2% to be made.
(f) During the year, machinery was purchased for ₹ 20,000 but it was debtied to the Purchases Account.
You are required to prepare Trading Account, Profit and Loss Account and Balance Sheet.
Answers
Answer:
this is the answer..........
Trading and P&L A/c with Balance sheet as at 31.3.2018
Explanation:
In the Books of Mr.Bharat
Trading and P&L A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Opening Stock 48000 By Sales 470700
To Purchases 188000 (-9300)
(-5500-20000)
To Wages 150000 By Closing Stock 52000
To Lighting and Heat 1100
(+300)
To Gross Profit 135600
(bal. fig.)
To Dep. on Furniture 130 By Gross Profit 135600
To Bad debts 3700 By Discount Rec. 3700
(+2500+700+3000-2500)
To Prov. for Disct. 840
To Salaries 14000
To Insurance 6300
To General Expenses 1000
To Discount Allowed 6500
To Rent 6000
To Net Profit 100830
(bal.)
139300 139300
Balance Sheet
as at 31.3.2018
Notes To A/c Amount(Rs.)
Non-Current Assets:
Furniture 140000
Machinery 450000
(-50000)
Current Assets:
Closing Stock 640000
Debtors 190000
(-6000-10000)
Cash in Hand 15000
Total(A) 1435000
Non-Current Liabilities:
Capital 912727
(-180000+292727)
Bank Loan 260000
(+10000)
Current Liabilities:
Creditors 189800
O/s Wages 24000
O/s Rent 20000
Manager Commission 29273
Total(B) 1435000