Question 21.
Followingt Trial Balance has been extracted from the books of Santosh on 31st March, 2018:
Following additional information is available:
(a) Stock on 31st March, 2018 was ₹ 3,08,000.
(b) Depreciation is to be charged on Plant and Machinery at 5% and Furniture and Fixtures at 6%. Loose Tools are revalued at ₹ 1,60,000.
(c) Provision for Doubtful Debts is to be maintained at 5% on Sundry Debtors.
(d) Remuneration of ₹ 20,000 paid to Shri B. Barua, a temporary employee, stands debited to his personal account and it is to be corrected.
(e) Unexpired insurance was ₹ 4,000.
You are to prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date.
Answers
Trading and P&L A/c with Balance sheet as at 31.3.2018
Explanation:
Trading and P&L A/c
as at 31.3.2018
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Opening Stock 200000 By Sales 4600000
To Purchases 2080000 (-80,000)
(-40,000) By Closing Stock 308000
To Wages 10,00,000
To Carriage 120000
To Gross Profit 1508000
(bal. fig.)
To Prov. for DD 8000 By Gross Profit 1508000
To Salaries 436000 By Disct. Received 60000
(+20,000) By Unexpired Ins. 4000
To Postage 40000
To General Expenses 720000
To Rent 144000
To Depreciation on:
F&F 7200
P&M 50000
Loose tools 40000
To Net Profit 126800
(bal.)
Balance Sheet
as at 31.3.2018
Notes to A/c Amount(Rs.)
Non-Current Assets:
Furniture and Fixtures 112800
Plant and Machinery 950000
Current Assets:
Loose tools 160000
Closing Stock 308000
Goodwill 100000
Debtors 532000
(-28000)
Prepaid Insurance 4000
Cash and Bank 140000
Total(A) 2306800
Non-Current Liabilities:
Capital 2066800
(-20,000+126800)
Current Liabilities:
Creditors 240000
Total(B) 2306800