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.
Financial Statement of M/s. Ram Prasad & Sons | ||||
Trading Account for the year ended March 31, 2019 | ||||
Dr. |
|
| Cr. | |
Particulars | Amount (₹) | Particulars | Amount (₹) | |
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, 2019 | ||||||
Dr. |
| Cr. | ||||
Particulars | Amount (₹) | Particulars | Amount (₹) | |||
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 |
| ||||
Interest on Capital at 5% | 4,500 |
| ||||
Net Profit (Balancing Figure) | 6,45,500 | |||||
9,25,000 |
| 9,25,000 |
Balance Sheet as on March 31, 2019 | |||||
Liabilities | Amount (₹) | Assets | Amount (₹) | ||
Capital Add: Interest on Capital | 9,00,000 4,500 | Fixed Assets | |||
Add: Net Profit | 6,45,500 | 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 | ||||