Question

The following trial balance is extracted from the books of Amritsar Steel Store for
Depreciation on Assets
the
year ending 31st March, 2019:
Ledger Accounts
Debit
Credit
4,00,000
15,000
1,25,000
4,000
12,000
2,500
Opening Stock
Purchases and sales
Returns
Drawings and Capital
Furniture
Interest
Commission
Discount
Salaries
Insurance
Wages
Building
Postage
Octroi Duty
Bills Receivable and Payable
Debtors and Creditors
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Cash
40,000
1,75,000
10,000
42,500
75,000
1,000
2,000
3,500
8,000
2,000
1,500
1,00,000
5,000
4,500
25,000
48,000
10,500
22,000
5,75,500
7,000
10,000
5,75,500
You are required to prepare Trading and Profit & Loss Account for the year ending 31st
March, 2019 after considering the following adjustments :
(1) Closing stock on 31.3.2019 was valued at 62,500.
(ii) Depreciate furniture by 10% p.a. and building by 5% p.a.
(iii) Insurance prepaid is 500.
(iv) Commission received in advance 2,000.
(y) Interest 250 has been earned but not yet received.
(vi) Salaries outstanding 2,500 and wages due 400.
D. . . . от​

Answer 1

Preparation Of Final Accounts

Explanation:

Financial Statements are the statements prepared at the end of the accounting period to determine the financial performance i.e. income earned or loss incurred during the accounting period. These are also referred as Final Accounts. It includes :

• Trading and Profit & Loss A/c

• Balance Sheet

They are the end-product of the accounting process prepared from the Trial Balance.

Pls refer to the attached pic below for preparation of the Final Accounts of the following Question.