From the following balances extracted from the books of Raga Ltd. Prepare a trading and profit and loss account for the year ended March 31, 20117 and a balance sheet as on that date.
Account Title |
Amount Rs |
Account Title |
Amount Rs |
Drawings |
20,000 |
Sales |
2,20,000 |
Land and Buildings |
12,000 |
Capital |
1,01,110 |
Plant and Machinery |
40,000 |
Discount |
1,260 |
Carriage inwards |
100 |
Apprentice premium |
5,230 |
Wages |
500 |
Bills payable |
1,28,870 |
Salary |
2,000 |
Purchases return |
10,000 |
Sales return |
200 |
|
|
Bank charges |
200 |
|
|
Coal, Gas and Water |
1,200 |
|
|
Purchases |
1,50,000 |
|
|
Trade Expenses |
3,800 |
|
|
Stock (Opening) |
76,800 |
|
|
Cash at bank |
50,000 |
|
|
Rates and Taxes |
870 |
|
|
Bills receivable |
24,500 |
|
|
Sundry debtors |
54,300 |
|
|
Cash in hand |
30,000 |
|
|
|
4,66,470 |
|
4,66,470 |
The additional information is as under:
1. Closing stock was valued at the end of the year Rs, 20,000.
2. Depreciation on plant and machinery charged at 5% and land and building at 10%.
3. Discount on debtors at 3%.
4. Make a provision at 5% on debtors for doubtful debts.
5. Salary outstanding was Rs 100 and Wages prepaid was Rs 40.
6. The manager is entitled a commission of 5% on net profit after charging such commission.
Trading Account |
|||||||||
Dr. |
Cr. |
||||||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||||||
Opening Stock |
|
76,800 |
Sales |
2,20,000 |
|
||||
Purchases |
1,50,000 |
Less: Sales Return |
200 |
2,19,800 |
|||||
|
Less: Purchases Return |
10,000 |
1,40,000 |
Closing Stock |
|
20,000 |
|||
Carriage Inwards |
|
100 |
|
|
|||||
Wages |
500 |
|
|
|
|||||
|
Less: Prepaid |
40 |
460 |
|
|
||||
Coal, Gas and Water |
|
1,200 |
|
|
|||||
Gross Profit |
21,240 |
|
|
||||||
|
|
2,39,800 |
|
2,39,800 |
|||||
|
|
|
|
|
|
|
|
||
Profit and Loss Account |
|||||
Dr. |
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Salary |
2,000 |
|
Gross Profit |
21,240 |
|
|
Add: Outstanding Salary |
100 |
2,100 |
Discount |
1,260 |
Bank Charges |
|
200 |
Apprentice Premium |
5,230 |
|
Trade Expenses |
|
3,800 |
|
|
|
Rates and Taxes |
|
870 |
|
|
|
Depreciation on Plant and Machinery |
|
2,000 |
|
|
|
Depreciation on Land and Building |
|
1,200 |
|
|
|
Provision for Doubtful Debts |
|
2,715 |
|
|
|
Discount on Debtors |
|
1,548 |
|
|
|
Net Profit |
|
13,297 |
|
|
|
|
|
|
|
||
|
|
27,730 |
|
27,730 |
|
Manager’s Commission |
633 |
Balance b/d |
13,297 |
||
Net Profit after Commission |
12,664 |
|
|||
|
|
13,297 |
13,297 |
||
|
|
|
|
|
Balance Sheet |
||||||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|||||
Capital |
1,01,110 |
|
Cash at Bank |
|
50,000 |
|||
|
Add: Net Profit |
12,664 |
|
Land and Building |
12,000 |
|
||
|
Less: Drawings |
20,000 |
93,774 |
Less: Depreciation |
1,200 |
10,800 |
||
|
Plant and Machinery |
40,000 |
|
|||||
Bills Payable |
|
1,28,870 |
Less: Depreciation |
2,000 |
38,000 |
|||
Outstanding Salary |
|
100 |
Bills Receivable |
24,500 |
||||
Outstanding Manager's Commission |
|
633 |
Sundry Debtors |
54,300 |
|
|||
|
|
Less: New Provision |
2,715 |
|
||||
|
|
Less: Discount on Debtors |
1,548 |
50,037 |
||||
|
|
Cash in Hand |
|
30,000 |
||||
|
|
Closing Stock |
|
20,000 |
||||
|
|
Prepaid Wages |
40 |
|||||
|
|
|
|
|||||
|
|
2,23,377 |
|
2,23,377 |
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