Question

Following is the Trial Balance as on 31st March, 2019. Prepare Trading and Profit and Loss Account and Balance Sheet:

Particulars	Dr. (₹)	Cr. (₹)
Stock on 1st April, 2018	8,000
Sales		2,20,000
Purchases	1,26,000
Productive Wages	56,500
Salaries	16,000
Stores Consumed	6,050
Carriage	3,050
Rent	5,200
Insurance	1,320
Machinery	52,000
Building	67,000
Capital Less Drawings		1,45,600
Sundry Debtors	44,000
Sundry Creditors		20,000
Secured Loan		16,000
Furniture	3,350
General Expenses	2,600
Cash in Hand	1,930
Bad Debts	1,020
Bank	6,580
Input CGST	3,000
Input SGST	3,000
Output CGST		2,500
Output SGST		2,500
Total	4,06,600	4,06,600
	​

Stock on 31st March, 2019, ₹ 20,600.
You are to make adjustments in respect of the following:
(a) Depreciate Machinery at 10% p.a.
(b) Make a provision @ 5% for Doubtful Debts.
(c) Provide discount on debtors @ $2\raisebox{1ex}{$1$}\!\left/ \!\raisebox{-1ex}{$2$}\right.$%.
(d) Rent includes Rent deposit of ₹ 400.
(e) Insurance Prepaid ₹ 120.

Answer 1

Trading Account for the year ended March 31, 2019
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Opening Stock	8,000	Sales	2,20,000
Purchases	1,26,000	Closing Stock	20,600
Carriage	3,050
Productive Wages	56,500
Stores Consumed	6,050
Gross Profit	41,000
	2,40,600		2,40,600

Profit & Loss Account for the year ended March 31, 2019
Dr.						Cr.
Particulars				Amount (₹)	Particulars	Amount (₹)
Salaries				16,000	Gross Profit	41,000
Insurance Premium		1,320
Less: Prepaid		120		1,200
Depreciation on Machinery				5,200
Rent	5,200
Less: Deposit	400			4,800
Bad Debts			1,020
Add: Provision for Doubtful Debts			2,200
Add: Provision for Discount			1,045	4,265
General Expenses				2,600
Net Profit				6,935
				1,32,200		1,32,200

Balance Sheet as on March 31, 2019
Dr.					Cr.
Liabilities		Amount (₹)	Assets		Amount (₹)
Creditors		20,000	Bank		6,580
Secured Loan		16,000	Building		67,000
Capital	1,45,600		Closing Stock		20,600
Add: Net Profit	6,935	1,52,535	Cash in Hand		1,930
			Debtors	44,000
			Less: Provision for DD	2,200
			Less: Provision for Discount	1,045	40,755
			Machinery	52,000
			Less: Depreciation	5,200	46,800
			Furniture		3,350
			Prepaid Insurance		120
			Rent Deposit		400
			Input CGST		500
			Input SGST		500
		1,88,535			1,88,535