Question 27.
Following is the Trial Balance of Mr. S. Kapur on 31st March, 2018:
Taking into account the following adjustments, prepare Trading and Profit and Loss Account and Balance Sheet:
(a) Stock in Hand on 31st March, 2018 is ₹ 1,36,000.
(b) Machinery is to be depreciated @ 10% and patents @ 20%.
(c) Salaries for the month of March, 2018 amounting to ₹ 30,000 were unpaid.
(d) Insurance includes a premium of ₹ 1,700 for the year ending 31st March, 2019.
(e) Wages include a sum of ₹ 40,000 spent on constructing a scooter shed for employees and customers.
(f) Provision for Doubtful Debts is to be created to the extent of 5% on Sundry Debtors.
Answers
Answer:
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Trading and P&L A/c with Balance sheet as at 31.3.2018
Explanation:
In the Books of Mr.S.Kapur
Trading A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Opening Stock 115200 By Sales 1962000.
To Purchases 803500 (-13600)
(-10,000) By Closing Stock 136000
To Fuel 94600
To Carriage 40800
To Wages 169600
(-40,000)
To Gross Profit 874300
To Insurance 10300 By Gross Profit 874300
(-1700)
To Salaries 330000
(+30,000)
To Prov. for DD 14500
To Advt. Expenses 60,000
To Carriage outwards 64000
To Depreciation:
Machinery 40000
Patents 30,000
To Net Profit 325500
Balance Sheet
as at 31.3.2018
Notes to A/c Amount(Rs.)
Non-Current Assets:
Machinery 360000
Patents 120000
Building 640000
(+40,000)
Computer 200000
Current Assets:
Debtors 275500
(-14500)
Closing Stock 136000
Cash at Bank 232600
Input SGST 5000
Cash in Hand 10800
Prepaid Insurance 1700
Total(A) 1981600
Non-Current Liabilities:
Capital 1820600
(+325000-104900)
Current Liabilities:
Creditors 131000
O/s Salaries 30000
Total(B) 1981600