Question

Following are the balances extracted from the books of Manish Gupta on 31st March, 2018:

	₹		₹
Capital	1,90,000	Cash at Bank	26,000
Drawing	7,000	Salaries	8,000
Plant and Machinery	1,20,000	Repairs	1,900
Delivery Vehicle	26,000	Stock on 1st April, 2017	16,000
Sundry Debtors	36,000	Rent	4,500
Sundry Creditors	26,000	Manufacturing Expenses	1,500
Purchases	20,000	Bills Payable	23,500
Sales	42,000	Bad Debts	5,000
Wages	8,000	Carriage	1,600

Prepare Trading and Profit and Loss Account and Balance Sheet as at 31st March, 2018 after following adjustments are made:
(i) Closing Stock was ₹ 16,000.
(ii) Depreciate Plant and Machinery @ 10% and Delivery Vehicle @ 15%.
(iii) Unpaid Rent amounted to ₹ 500.

Answer 1

Trading Account for the year ended March 31, 2018
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Opening stock		16,000	Sales	42,000
Purchases		20,000	Closing Stock	16,000
Wages		8,000
Manufacturing Expenses		1,500
Carriage		1,600
Gross Profit (Balance Figure)		10,900
		58,000		58,000

Profit and Loss Account for the year ended March 31, 2018
Dr.						Cr.
Particulars			Amount (Rs)	Particulars	Amount (Rs)
Salaries			8,000	Gross Profit	10,900
Repairs			1,900	Net Loss (Balancing Figure)	24,900
Rent		4,500
Add: Unpaid Rent		500	5,000
Bad Debts			5,000
Depreciation on:
Plant and machinery		12,000
Delivery Vehicle		3,900	15,900
			35,800		35,800

Balance Sheet as on March 31, 2018
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	1,90,000		Fixed Assets
Less: Drawings	(7,000)		Plant and Machinery	1,20,000
Less: Net Loss	(24,900)		Less:10% Deprecation	(12,000)	1,08,000
		1,58,100	Delivery Vehicle	26,000
			Less:15% Depreciation	(3,900)	22,100
Current Liabilities
Sundry Creditors		26,000	Current Assets
Bills Payable		23,500	Closing Stock		16,000
Unpaid Rent		500	Sundry Debtors		36,000
			Cash at Bank		26,000
		2,08,100			2,08,100