Question 18.
From the following Trial Balance of Shubdo Banerjee, prepare final accounts for the year ended in 31st March, 2018 and Balance Sheet as at that date:
The following adjustments be taken care of:
(i) Depreciate Land and Building @ 6%, Plant and Machinery @ 10%, Office equipments @ 20% and Furniture and Fixtures @ 15%.
(ii) Calculate Provision for Doubtful Debts at 2% on Debtors.
(iii) Insurance premium includes ₹ 250 paid in advance.
(iv) Provide salary to Banerjee ₹ 15,000 p.a.
(v) Outstanding Salaries ₹ 11,500.
(vi) 10% of the final profit is to be transferred to General Reserve.
Answers
Trading and P&L A/c with Balance sheet as at 31.3.2018
Explanation:
In the Books of Shubdo Banerjee
Trading and P&L A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Purchases 210000 By Sales 385000
To Return Inwards 1500 By Return outwards 2500
To Wages 43500
To Carriage 1200
To Gross Profit 129500
(ba. fig.)
To O/s Interest on Loan 2250 By Gross Profit 129500
To Salaries 65500 By Commission 1500
To Insurance Premium 1250 By Discount Rec. 1200
(Less:Prepaid)
To Discount allowed 750
To Office expenses 15400
To Carriage outwards 2000
To Bad debts 2000
(Add:Prov. for DD)
To Depreciation 13400
To General Reserve 2965
(10% of NP)
To Net Profit 26685
Balance Sheet
as at 31.3.2018
Notes to A/c Amount(Rs.)
Non-Current Assets:
Furniture and Fixtures 17000
Land and Building 47000
Plant and Machinery 45000
Office Equipement 9600
Current Assets:
Debtors(Less: Prov. for DD) 39200
Closing Stock 45000
Cash at Bank 16000
Bills Receivables 20000
Prepaid Insurance 250
Total(A) 239050
Non-Current Liabilities:
Capital 156685
(Add: Salary 15000)
(Add: Net Profit 26685)
Loan with O/s Interest 27250
Current Liabilities:
Creditors 25000
Bills Payables 12350
O/s Salaries 11500
Expenses Payable 3300
General Reserve 2965
Total(B) 239050