Question

You are instructed by Mr. A to prepare for him a Profit & Loss Account for the year ended 31"
December, 2006 and a Balance Sheet as at that date. The following information regarding his assets
and liabilities submitted :
1.1.2006 31.12.2006
Rs.
Debtors
3,200
5.000
Creditors :
for goods
1,200
900
for rent
50
for expenses
100
50
Cash
90
90
Bank
300
1,200
Stock
3,000
3,500
Plant and Furniture
2,000
2,500
His summarized Cash transactions were as follows:
Payments : Drawings Rs. 1,600; Wages Rs. 5,900; Rent Rs. 1,000; Expenses Rs. 900; Plant
purchased Rs. 700; Repairs 20; Payments for goods purchased Rs. 8,000.
Receipts : Cash sales Rs. 2,420; Payment made by Debtors Rs. 15,100; Private receipts Rs. 400.
Rs. 200 of the Debtors' balances at 31'' December 2006 is considered bad and is to be written off.​

Answer 1

Explanation:

write the all assets and liabilities in balance sheet and complete the all adjustments prepair profit and loss a/c and trending a/c