Following Trial Balance has been extracted from the books of M-s- Ram Prasad - Sons on 31st March- 2018-Additional Information-i Outstanding salaries were - 45-000 -ii Depreciate Machinery at 10 -iii Wages outstanding were - 5-000 -

Financial Statement of M/s. Ram Prasad amp; Sons Trading Account for the year ended March 31, 2018 Dr. ...

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Question

Following Trial Balance has been extracted from the books of M/s. Ram Prasad & Sons on 31st March, 2018:

Particulars

Dr.

₹

Particulars

Cr.

₹

Machinery
4,00,000
Capital
9,00,000

Cash at Bank
1,00,000
Sales
16,00,000

Cash in Hand
50,000
Sundry Creditors
4,50,000

Wages
1,00,000
Interest Received
30,000

Purchases
8,00,000

Stock on 1st April, 2017
6,00,000

Sundry Debtors
4,40,000

Bills Receivable
2,90,000

Rent
45,000

Commission
25,000

General Expenses
80,000

Salaries
50,000

29,80,000

29,80,000

Additional Information:
(i) Outstanding salaries were ₹ 45,000.
(ii) Depreciate Machinery at 10%.
(iii) Wages outstanding were ₹ 5,000.
(iv) Rent prepaid ₹ 10,000.
(v) Provide for interest on capital 5% per annum.
(vi) Stock on 31^st March, 2018 ₹ 8,00,000.
Prepare Trading and Profit and Loss Account for the year ended 31^st March, 2018 and Balance Sheet as at that date.

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Solution

Financial Statement of M/s. Ram Prasad & Sons

Trading Account

for the year ended March 31, 2018

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

6,00,000

Sales

16,00,000

Purchases

8,00,000

Closing Stock

8,00,000

Wages

1,00,000

Add: Outstanding Wages

5,000

1,05,000

Gross Profit (Balancing Figure)

8,95,000

24,00,000

24,00,000

Profit and Loss Account

for the year ended March 31, 2018

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Rent

45,000

Gross Profit

8,95,000

Less: Prepaid Rent

(10,000)

35,000

Interest Received

30,000

Commission

25,000

General Expenses

80,000

Salaries

50,000

Add: Outstanding Salaries

45,000

95,000

Depreciation on Machinery

40,000

Net Profit (Balancing Figure)

6,50,000

9,25,000

9,25,000

Balance Sheet

as on March 31, 2018

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

9,00,000

Fixed Assets

Add: Net Profit

6,50,000

15,50,000

Machinery

4,00,000

Current Liabilities

Less: 10% Depreciation

(40,000)

3,60,000

Sundry Creditors

4,50,000

Current Assets

Outstanding Salary

45,000

Closing Stock

8,00,000

Outstanding Wages

5,000

Sundry Debtors

4,40,000

Bills Receivable

2,90,000

Prepaid Rent

10,000

Cash at Bank

1,00,000

Cash in Hand

50,000

20,50,000

20,50,000

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Similar questions

Following Trial Balance has been extracted from the books of Prasad on 31st March, 2019:

Particulars	Dr. (₹)	Particulars	Cr. (₹)
Machinery	4,00,000	Capital	9,00,000
Cash at Bank	1,00,000	Sales	16,00,000
Cash in Hand	50,000	Sundry Creditors	4,50,000
Wages	1,00,000	Interest Received	30,000
Purchases	8,00,000
Stock on 1st April, 2018	6,00,000
Sundry Debtors	4,40,000
Bills Receivable	2,90,000
Rent	45,000
Commission	25,000
General Expenses	80,000
Salaries	50,000
	29,80,000		29,80,000

Additional Information:

(i) Outstanding salaries were ₹ 45,000.

(ii) Depreciate Machinery at 10%.

(iii) Wages outstanding were ₹ 5,000.

(iv) Rent prepaid ₹ 10,000.

(v) Provide for interest on capital @ 5% per annum.

(vi) Stock on 31st March, 2019 ₹ 8,00,000.

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date.

Q. From the following Receipts and Payments Account and additional information given below , prepare Income and Expenditure Account and Balance Sheet of Rural Literacy Society as on 31st March, 2018:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31 st March, 2018
Dr.				Cr.
Receipts		Amount (₹)	Payments	Amount (₹)
To Balance b/d			By General Expenses	32,000
Cash in Hand		40,000	By Newspaper	18,500
Cash at Bank		1,55,500	By Electricity	30,000
To Subscriptions:			By Fixed Deposit with Bank	1,80,000
2016-17	12,000		(On 30th September, 2017 @ 10%p.a.)
2017-18	2,65,000		By Books	70,000
2018-19	5,000	2,82,000	By Salary	36,000
To Sale of Old Newspaper		12,500	By Rent	65,000
To Government Grant		1,20,000	By Postage Charges	3,000
To Sale of Old Furniture		37,000	By Furniture (purchased)	1,05,000
(Book value ₹50,000)			By Balance c/d:
To Interest received on Fixed Deposit		4,500	Cash in Hand	30,000
			Cash at Bank	82,000
		6,51,500		6,51,500

Additional information:
(i) Subscription outstanding as on 31st March, 2017 ₹ 20,000 and on 31st March, 2018 ₹ 15,000.
(ii) On 31st March , 2018, salary outstanding ₹ 6,000 and one month rent paid in advance.
(iii) On 1st April, 2017, society owned furniture ₹ 1,20,000 and books ₹ 50,000.

Q. Trial Balance of a business as at 31st March, 2018 is given below:


Particulars	Dr. (₹)	Particulars	Cr. (₹)
Stock on 1st April, 2017	25,000	Sales	2,27,800
Furniture	8,000	Commission	500
Plant and Machinery	1,50,000	Returns Outward	1,000
Debtors	30.000	Creditors	40,000
Wages	12,000	Capital	1,50,000
Salaries	20,000
Bad Debts	1,000
Purchases	1,20,000
Electricity Charges	1,200
Telephone Charges	2,400
General Expenses	3,000
Postage Expenses	1,800
Returns Inward	900
Insurance Premium	1,500
Cash in Hand	2,500
Cash at Bank	40,000
	4,19,300		4,19,300

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after taking into account the following adjustments:
(i) Closing Stock was valued at ₹7,000.
(ii) Outstanding liabilities for wages were ₹600 and salaries ₹1,400.
(iii) Depreciation is to be provided @ 5% p.a. on all fixed assets.
(iv) Included in Plant and Machinery is a machine purchased for ₹10,000 on 1st October, 2017.
(v) Insurance premium paid in advance ₹200.

Q. In the year ended 31st March, 2018, salaries paid amounted to ₹ 2,04,000. Ascertain the amount chargeable to the Income and Expenditure Account for the year ended 31st March ,2018 from the following additional information:

	₹
Prepaid Salaries on 31st March, 2017	24,000
Prepaid Salaries on 31st March, 2018	12,000
Outstanding Salaries on 31st March, 2017	18,000
Outstanding Salaries on 31st March, 2018	15,000

Q. From the following Receipts and Payments Account of Social Club and the information supplied, prepare Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March ,2019
Dr.				Cr.
Receipts		(₹)	Payments	(₹)
To Balance b/d		7,000	By Salaries	28,000
To Subscriptions:			By General Expenses	6,000
2017-18	5,000		By Electricity Charges	4,000
2018-19	20,000		By Books	10,000
2019-20	4,000	29,000	By Newspapers	8,000
To Hire of Ground		14,000	By Balance c/d	4,000
To Surplus from Entertainment Events		8,000
To Sale of Old Newspapers		2,000

		60,000		60,000

(a) The club has 50 members each paying an annual subscription of ₹ 500. Subscriptions Outstanding on 31st March,2018 were ₹ 6,000.
(b) On 31st March, 2019, Salaries Outstanding amounted to ₹ 2,000. Salaries paid in the year ended 31st March, 2019 included ₹ 6,000 for the year ended 31st March, 2018.
(c) On 1st April, 2018, the club owned Building valued at ₹ 2,00,000; Furniture ₹ 20,000 and Books ₹ 20,000.
(d) Provide depreciation on Furniture at 10%.

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Particulars	Dr. ₹	Particulars	Cr. ₹
Machinery	4,00,000	Capital	9,00,000
Cash at Bank	1,00,000	Sales	16,00,000
Cash in Hand	50,000	Sundry Creditors	4,50,000
Wages	1,00,000	Interest Received	30,000
Purchases	8,00,000
Stock on 1st April, 2017	6,00,000
Sundry Debtors	4,40,000
Bills Receivable	2,90,000
Rent	45,000
Commission	25,000
General Expenses	80,000
Salaries	50,000
	29,80,000		29,80,000

Financial Statement of M/s. Ram Prasad & Sons
Trading Account for the year ended March 31, 2018
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Opening Stock		6,00,000	Sales	16,00,000
Purchases		8,00,000	Closing Stock	8,00,000
Wages	1,00,000
Add: Outstanding Wages	5,000	1,05,000
Gross Profit (Balancing Figure)		8,95,000

		24,00,000		24,00,000

Profit and Loss Account for the year ended March 31, 2018
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Rent	45,000		Gross Profit	8,95,000
Less: Prepaid Rent	(10,000)	35,000	Interest Received	30,000
Commission		25,000
General Expenses		80,000
Salaries	50,000
Add: Outstanding Salaries	45,000	95,000
Depreciation on Machinery		40,000
Net Profit (Balancing Figure)		6,50,000
		9,25,000		9,25,000

Balance Sheet as on March 31, 2018
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	9,00,000		Fixed Assets
Add: Net Profit	6,50,000	15,50,000	Machinery	4,00,000
Current Liabilities			Less: 10% Depreciation	(40,000)	3,60,000
Sundry Creditors		4,50,000	Current Assets
Outstanding Salary		45,000	Closing Stock		8,00,000
Outstanding Wages		5,000	Sundry Debtors		4,40,000
			Bills Receivable		2,90,000
			Prepaid Rent		10,000
			Cash at Bank		1,00,000
			Cash in Hand		50,000
		20,50,000			20,50,000