The following balances were extracted from the books of Thomas as on 31st March, 2018
Additional information:
Closing stock Rs. 9,000
Provide depreciation @ 10% on machinery
Interest accrued on investment Rs 2.000
Prepare trading account, profit and loss account and balance sheet.
Answers
Explanation:
trading A/c for year ended 31 march 2018
particular Amt particular Amt
To opening
stock 10,000 By sales 1,18000
To purchase 74000 By closing
(return less) stock 9000
To freight inward 4000
To wages 2000
To gross
profit 37000
1,27,000 1,27000
Profit and loss A/c for year ended 31 march 2018
Particular Amt particular Amt
To bank charge 1000 By gross
profit 37000
To depreciation 3000 By intrest 2000
To net profit 35000
39000 39000
Balance sheet as on 31 march 2018
Liability Amt Asset Amt
Capital 60,000 Machinery 27000
net profit 35000 Investment 10000
Land 30000
building 25000
cash at bank 18000
Creditor 30,000 cash in hand 4000
Accrued
intrest 2000
closing stock 9000
1,25,000 1,25,000