Trial Balance of Prashav as on 31-3-2021
Debit balance Amount
(`)
Credit Balance Amount
(`)
Drawing 12,000 Capital 4,00,000
Purchase 6,00,000 Sales 9,98,000
Stock (Dt.1-4-2020) 60,000 Purchase return 20,000
Carriage Inward 10,000 Interest on debenture
received 10,000
Sales return 40,000 Discount received 4,000
Salary 1,20,000 Commission received 2,000
Wages 40,000 10% Bank Loan 2,00,000
Office expenses 80,000 Bills Payable 15,000
Debtors 90,000 Creditors 70,000
Bills receivables 30,000 Outstanding rent 1,000
Advertisement
Expenses 50,000
Stationery – printing 6,000
Machinery 90,000
Building 3,00,000
Furniture 60,000
Rent 12,000
Investment in 10%
Debenture 1,00,000
Interest on Bank loan 20,000
17,20,000 17,20,000
Adjustments:
1 Closing stock of goods is ` 1,10,000. Market value of it is ` 1,20,000
2 Goods of ` 5,000 withdrawn for personal use from business, which is
not recorded.
3 Unrecorded credit purchase ` 40,000.
4 Outstanding wages ` 10,000.
5 Calculate depreciation on machinery at 10% and on building at 5%
there are 100 points for the answer plz give right answer
Answers
Explanation:
Trading and Profit And Loss a/c
Particulars Amount Particulars Amount
To Opening Stock a/c 60000 By Sales a/c 998000
To Purchase a/c : 600000 By Purchase Returns a/c 20000
+unrecorded : 40000 640000 By Closing Stock a/c 110000
To Sales Returns a/c 40000
To Carriage Inwards a/c 10000
To Wages a/c : 40000
+Outstanding : 10000 50000
To Gross Profit b/d 328000
1128000 1128000
To Salaries a/c 120000 By Gross Profit c/d 328000
To Office Expenses a/c 80000 By Commission rec. a/c 2000
To Advertisement a/c 50000 By Discount Rec. a/c 4000
To Rent A/c : 12000 By Interest Received a/c 10000
+Outstanding: 1000 13000
To Stationery and Printing a/c 6000
To Interest on bank loan a/c 20000
To Depreciation a/c 24000
To Net Profit b/d 31000
344000 344000
Rate Of Depreciation =
Machinery : 90000 x 10/100 = 9000
Building : 300000 x 5/100 = 15000
Total = 24000