Question 3.
Following Trial Balance has been extracted from the books of M/s. Ram Prasad & Sons on 31st March, 2018:
Additional Information:
(i) Outstanding salaries were ₹ 45,000.
(ii) Depreciate Machinery at 10%.
(iii) Wages outstanding were ₹ 5,000.
(iv) Rent prepaid ₹ 10,000.
(v) Provide for interest on capital 5% per annum.
(vi) Stock on 31st March, 2018 ₹ 8,00,000.
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date.
Answers
hicyicurstdti and stylise are also known for that the tree has officia and stylised flowers and stylise are the best known to the great scientist and stylised in a variety that has official figures for women who are
Trading and P&L A/c with Balance Sheet as at 31.3.2018
Explanation:
In the Books of M/s Ram Prasad & Sons.
Trading and P&L A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Opening Stock 6,00,000 By Sales 16,00,000
To Purchases 8,00,000 By Closing Stock 8,00,000
To Wages 1,05,000
To Gross Profit 8,95,000
(bal. fig.)
24,00,000 24,00,000
To Interest on Capital 45,000 By Gross Profit 8,95,000
By Interest Received 30,000
To Rent 35,000
To Commission 25,000
To General Expenses 80,000
To Salaries 95,000
To Depreciation(10%) 40,000
To Net Profit 6,05,000
(Bal. fig.)
9,25,000 9,25,000
Balance Sheet
as at 31.3.2018
Notes to A/c Amount(Rs.)
Non-Current Assets:
Machinery - 3,60,000
Current Assets:
Debtors - 4,40,000
Bills Receivable - 2,90,000
Cash in Hand - 50,000
Cash at Bank - 1,00,000
Closing Stock - 8,00,000
Prepaid Rent - 10,000
Total(A) 20,50,000
Non-Current Liabilities:
Capital 1 15,50,000
Current Liabilities:
Creditors - 4,50,000
Outstanding Salaries - 45,000
Outstanding Wages - 5,000
Total(B) 20,50,000
*Notes to A/cs:
1)Calculation of Capital to be transferred to Balance Sheet
Capital Rs.9,00,000
Add:Interest on Capital Rs.45,000
Add:Net Profit Rs.6,05,000
Capital Rs.15,50,000