Question

Mukesh Khanna has not kept proper books. However, he gives you the following information relating to the year 2011-12:

Summary of his Cash Book

	(₹)		(₹)
To Balance b/d	8,100	By Payment to Creditors	56,200
To Received from Debtors	75,000	By Carriage	1,270
To Cash Sales	52,000	By Salaries	24,000
To Sales of Old Newspapers	420	By Rent	16,000
To Loan from Mrs. Khanna @ 15%p.a. on 1st July, 2011	8,000	By Purchases of Cycle for his son	1,500
		By Furniture Purchased	12,000
		By Balance c/d	32,550
	1,43,520		1,43,520

The following balances existed on 1st April, 2011 - Debtors ₹ 24,200; Furniture ₹ 18,000; Stock ₹ 30,000; Creditors ₹ 18,000.
The following balances existed on 31st March, 2012 - Debtors ₹ 20,800; Furniture ₹ 30,000; Stock ₹ 35,950; Creditors ₹ 34,600.

Adjustments:-
(1) Depreciate Furniture by 10%.
(2) Provide upto-date interest on Mrs. Khanna's Loan.
Prepare trading and Profit and Loss A/c for the year ending 31st March, 2012 and a Balance Sheet as at that date.

Answer 1

Trading Account for the year ended March 31, 2012
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Opening Stock	30,000	Sales (Cash + Credit)	1,23,600
Purchases (Credit)	72,800	Closing Stock	35,950
Carriage	1,270
Gross Profit	55,480
	1,59,550		1,59,550

Profit & Loss Account for the year ended March 31, 2012
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Salary	24,000	Gross Profit	55,480
Rent	16,000	Sale of Old Newspapers	420
Depreciation on Furniture	3,000
Outstanding Interest on Loan (for 9 months)	900
Net Profit	12,000
	55̮,900		55,900

Balance Sheet as on March 31, 2012
Dr.					Cr.
Liabilities		Amount (₹)	Assets		Amount (₹)
Capital	62,300		Cash in Hand		32,550
Less: Drawings	1,500		Closing Stock		35,950
Add: Net Profit	12,000	72,800	Furniture	18,000
Creditors		34,600	Add: Additions	12,000
Unpaid Interest on Loan		900	Less: Depreciation	3,000	27,000
Loan from Mrs Khanna		8,000	Debtors		20,800
		1,16,300			1,16,300

Working Notes:

Balance Sheet as on March 31, 2011
Dr.			Cr.
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	18,000	Debtors	24,200
Capital (Balancing figure)	62,300	Furniture	18,000
		Stock	30,000
		Cash	8,100
	80,300		80,300

Debtors Account
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Balance b/d	24,200	Cash A/c	75,000
Sales A/c	71,600	Balance c/d	20,800
	95,800		95,800

Creditors Account
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Cash A/c	56,200	Balance b/d	18,000
Balance c/d	34,600	Purchases A/c	72,800
	90,800		90,800