Question 31.
On 31st March, 2018 the following Trial Balance was extracted from the books of Mohan:
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after taking into account the following:
(a) Stock as at 31st March, 2018 was valued at ₹ 70,000.
(b) All debtors are considered good for recovery.
(c) Depreciate Motor Vehicles by 20%.
(d) Bank intimation of customer’s cheque of ₹ 10,000 being dishonoured is not recorded in the books.
(e) Travelling expenses of ₹ 5,000 paid to sales person was wrongly debited to his Personal Account and was included in debtors.
(f) Amount of ₹ 6,000 received from Ronit was credited to his account and was included in creditors. This amount was written off as bad debt in earlier years.
(g) Drawings included an amount of ₹ 2,000 being amount drawn in cash. It was used by Mohan for Purchase of stationery used in business.
Answers
Trading and P&L A/c with Balance Sheet as at 31.3.2018
Explanation:
Trading and P&L A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Opening Stock 68000 By Sales 11,00,000
To Purchases 660000 By Return Outwards 15000
To Return Inwards 80,000 By Closing Stock 70,000
To Carriage 30,000
To Gross Profit 347000
(bal. fig.)
To Depreciation on Car 20,000 By Gross Profit 347000
To Travelling Expenses 5000 By Disct. Received 5000
To Stationary 2000 By Rent Received 3000
To Interest on Loan 3000 By Bad debts rec. 6000
To Bad debts 5000 By Prov. for DD 7000
To Carriage outwards 25000
To Salaries 90000
To Rent and Insurance 30000
To Advertising 35000
To General Expenses 34000
To Net Profit 119000
(bal. fig.)
Balance Sheet
as at 31.3.2018
Notes to A/c Amount(Rs.)
Non-Current Assets:
Land and Building 120000
Motor Vehicle 80000
Current Assets:
Cash at bank 25000
Cash in hand 20000
Debtors 205000
(-5000+10,000)
Closing Stock 70,000
Bills Receivable 60,000
Total(A) 580000
Non-Current Liabilities:
Capital 371000
(+119000-48000)
Loan 95000
Current Liabilities:
Creditors 94000
Bills Payables 20000
Total(B) 580000