The following is the trail balance of hari at 31st March 2012.
Hari's capital account - 76,690
Stock 1st April 2011 - 46,800
Sales - 3,89,600
Returns inwards -8,600
Purchase - 3,21,700
Return outwards - 5,800
Carriage inwards - 19,600
Rent and taxes - 4,700
Salary and wages - 9,300
Sundry debtors - 24,000
Sundry creditors - 14,800
Bank loan @ 14%.p.a -20,000
Bank intrest (dr). - 1,100
Printing and stationary expenses - 14,400
Bank balance - 8,000
Discount earned - 4,400
Furniture and fitting - 5,000
Discount allowed - 1,800
General expenses - 11,450
Insurance - 1,300
Postage and telegram expenses- 2,330
Cash balance - 380
Traveling expenses - 870
Drawing - 30,000
The following adjustment are to be made:
1. Include amongst the debtors is RS 3,000 due from ram include among the creditors RS 1,000 due to him.
2. Provision of doubtful debits ne created @ 5% and for discount 2% on sundry debtors.
3. depreciation on furniture and fitting @10% shall be written off.
4. Personal purchase of hari amounting to RS 600 had been recorded in the purchase day book.
5. Interest for the bank loan shall be provided for the whole year.
6. A quarter of amount of printing and stationary expenses is to be carried forward to the next year.
7. Credit purchase invoice amounting RS 400 had been omitted from the bank.
8.stock on 2012 was RS 78,600.
Prepare
1. Trading and profit and loss of the year March 31 2012
2. Balance sheet as at 31st March 2012
Answers
Answer:
A profit and loss account is also known as the P&L statement, income statement, trading statement, or statement of financial performance
Explanation:
A profit and loss account is a financial statement showing a business's income, expenses, and net profit for a certain period.
Opening Stock is the initial quantity of any product/ goods held by an organization during the start of any financial year or accounting period. It is equal to the closing stock of the previous accounting period, valued based on suitable accounting norms depending on the nature of the business
WN1: Calculation of Amount of Depreciation
Depreciation on Machinery=40,000×10100=Rs 4,000Depreciationon Furniture=5,000×5100=Rs 250
WN2: Calculation of Provision for Doubtful Debts
Provision for Doubtful Debts==(Sundry Debtors−Saleon Approval Basis)×Rate100(20,600−7,200)×5100=Rs 670
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1 ) Trading and Profit and Loss Account for the year ending March 31, 2012:
Income:
Sales 3,89,600
Discount earned 4,400
Total Income 3,94,000
Expenses:
Returns inwards 8,600
Purchase 3,22,300
Carriage inwards 19,600
Rent and taxes 4,700
Salary and wages 9,300
Printing and stationary expenses 14,400
Discount allowed 1,800
General expenses 11,450
Insurance 1,300
Postage and telegram expenses 2,330
Traveling expenses 870
Drawing 30,000
Provision for doubtful debts 1,200
Provision for discount on debtors 480
Depreciation on Furniture and Fittings 500
Interest on Bank loan 2,800
Total Expenses 89,850
Net Profit 3,04,150
2 ) Balance Sheet as at March 31, 2012:
Balance Sheet as at March 31, 2012:Assets:
Stock on 31st March 2012 78,600
Sundry Debtors 23,520
Furniture and Fittings 4,500
Cash balance 380
Liabilities:
Sundry Creditors 14,800
Bank Loan 20,000
Hari's Capital Account 76,690
Total Assets 123,500
Total Assets 123,500Total Liabilities 111,490
Total Assets 123,500Total Liabilities 111,490Net Assets 12,010
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