Question 6.
Following are the balances extracted from the books of Narain Lal on 31st March, 2018:
Additional Information:
(i) Closing Stock as on 31st March, 2018 was ₹ 2,00,600.
(ii) Depreciate: Business Premises by ₹ 3,000 and Furniture and Fittings by ₹ 2,500.
(iii) Make a provision of 5% on debtors for doubtful debts.
(iv) Carry forward ₹ 2,000 for unexpired insurance.
(v) Outstanding salary was ₹ 15,000.
Prepare Trading and Profit and Loss Account for the year and Balance Sheet as at that date.
Answers
Trading and P&L A/c with Balance Sheet as at 31.3.2018
Explanation:
In the books of Narain Lal
Trading and P&L A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Opening Stock 2,20,000 By Sales 14,80,000
To Purchases 11,00,000 (-20,000)
To Carriage 18,000 By Closing Stock 2,00,600
To Provision for 9000 By Gross Profit 3,42,600
Doubtful debts By Rent 10,000
To Salaries 1,05,000 By Discount 20,000
(+15,000)
To Insurance Prem. 18,000
(-2000)
To Discount 16,000
To General Expenses 40,000
To Commission 22,000
To Bad debts 8,000
To Depreciation:
Furniture 2500
Business Premises 3000
To Net Profit(Bal.) 1,49,100
3,72,600 3,72,600
Balance Sheet
as at 31.3.2018
Notes to A/c Amount(Rs.)
Non-Current Assets:
Furniture 23,500
Business Premises 1,97,000
Current Assets:
Debtors 1,71,000
Closing Stock 2,00,600
Prepaid Insurance 2,000
Total(A) 5,94,100
Non-Current Liabilities:
Capital 3,99,100
(-50,000+1,49,100)
Current Liabilities:
Creditors 1,38,000
Bank Overdraft 42,000
Outstanding Salaries 15,000
Total(B) 5,94,100
Answer:
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Explanation:
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