Prepare the trading and profit and loss account and balance sheet of M/s Control Device India on December 31, 2012 from the following balance as on the date.
Account Title Amt. (Dr) Amt. (Cr)
Drawings and Capital 19,530 67,500
Purchase and Sales 45,000 1,12,500
Salary and Commission 25,470 1,575
Carriage 2,700
Plant and Machinery 27,000
Furniture 6,750
Opening Stock 42,300
Insurance Premium 2,700
Interest 7,425
Bank Overdraft 24,660
Rent and Taxes 2,160
Wages 11,215
Returns 2,385 1,440
Carriage Outwards 1,485
Debtors and Creditors 36,000 58,500
General Expenses 6,975
Octroi 530
Investment 41,400
2,73,600 2,73,600
Closing stock was valued Rs. 20,000.
(a) Interest on capital @ 10%.
(b) Interest on drawings @ 5%.
(c) Wages outstanding Rs. 50.
(d) Outstanding salary Rs. 20.
(e) Provide a depreciation @ 5% on plant and machinery.
(f) Make a 5% provision on debtors.

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Solution

Trading and Profit and Loss Account
as on 31st December,2012
Dr Cr
Particulars Amt. (Rs.) Particular Amt. (Rs.)
To Opening Stock 42,300 By Sales 3,50,000
To Purchase 45,000
(-) Return Inwards 2,000
3,48,000
(-) Purchase Return 1,440
43,560 By Closing Stock 40,000
To Carriage 2,700
To Wages
(+) Outstanding Wages
11,215
50
11,265
To Octroi
530
To Gross Profit 29,760
1,30,115 3,80,000
To Salary 25,470 By Gross Profit b/d 2,11,000
(+) Outstanding Salary 20
25,490 By Rent 5,000
To Rent and Taxes
2,160 By Interest 2,000
To Insurance
Premium 2,700 (+) Interest on Investment 150
2,150
To Carriage Outward
1,485
To General Expenses
6,975
To Interest on Capital
6,750
To Depreciation of Plant and Machinery
1,350
To Provision for Debtors
1,800

48,710 48,710

Balance Sheet
as on 31st December, 2012
Liabilities Amt. (Rs.) Assets Amt. (Rs.)
Capital 67,500 Furniture 6,750
(+)Interest on Capital
(-) Loss (Net)
6,750
8,973 Plant and Machinery
27,000
(-) Drawings
(-) Interest on Drawings
19,530
977
44,770 (-) Depreciation @ 5%
13,50
25,650
Bank Overdraft
24,660 Debtors
36,000
Creditors
58,500 (-) Provision
11,800
34,200
Outstanding Wages 50 Investment
41,400
Outstanding Salary 20 Closing Stock
20,000
1,28,000 1,28,000

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Similar questions

Prepare the trading and profit and loss account and balance sheet of M/s Control Device India on March 31, 2017 from the following balance as on that date.

Account Title	Debit Amount Rs	Credit Amount Rs
Drawings and Capital	19,530	67,500
Purchase and Sales	45,000	1,12,500
Salary and Commission	25,470	1,575
Carriage	2,700
Plant and Machinery	27,000
Furniture	6,750
Opening stock	42,300
Insurance premium	2,700
Interest		7,425
Bank overdraft		24,660
Rent and Taxes	2,160
Wages	11,215
Returns	2,385	1,440
Carriage outwards	1,485
Debtors and Creditors	36,000	58,500
General expenses	6,975
Octroi	530
Investment	41,400
	2,73,600	2,73,600

Closing stock was valued Rs 20,000.

(a) Interest on capital @ 10%.

(b) Interest on drawings @ 5%.

(d) Outstanding salary Rs 20.

(e) Provide a depreciation @ 5% on plant and machinery.

(f) Make a 5% provision on debtors.

Prepare the trading and profit and loss account and balance sheet of M/s Control Device India on December 31, 2012 from the following balance as on the date.

$\begin{matrix} Account Title & A m t . (D r) & A m t . (C r) Drawing and Capital & 19, 530 & 67, 500 Purchases and Sales & 45, 000 & 1, 12, 500 Salary and Commission & 25, 470 & 1, 575 Carriage & 2, 700 Plant and Machinery & 27, 000 Furniture & 6, 750 Opening Stock & 42, 300 Insurance Premium & 2, 700 Interest & 7, 425 Bank Overdraft & 24, 660 Rent and Taxes & 2, 160 Wages & 11, 215 Returns & 2, 385 & 1, 440 Carriage Outwards & 1, 485 Debtors and Creditors & 36, 000 & 58, 500 General Expenses & 6, 975 Octroi & 530 Investment & 41, 400 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 2, 73, 600 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 2, 73, 600 - -------- - - -------- - \end{matrix}$

Closing stock was valued Rs. 20,000.

(a) Interest on capital @ 10 $%$ .

(b) Interest on drawings @ 5 $%$

(d) Outstanding salary Rs. 20.

(e) Provide a depreciation @ 5 $%$ on plant and machinery.

(f) Make a 5 $%$ provision on debtors.

The following balances have been extracted from the books of M/s Green House for the years ended December 31, 2010, prepare trading and profit and loss account and balance sheet as on this date.

$\begin{matrix} Account Title & Amt. (Rs) & Account Title & Amt. (Rs) Purchases & 80, 000 & Capital & 2, 10, 000 Bank Balance & 11, 000 & Bills Payable & 6, 500 Wages & 34, 000 & Sales & 2, 00, 000 Debtors & 70, 300 & Creditors & 50, 000 Cash in Hand & 1, 200 & Return Outwards & 4, 000 Legal Expenses & 4, 000 Building & 60, 000 Machinery & 1, 20, 000 Bills Receivable & 7, 000 Office Expenses & 3, 000 Opening Stock & 45, 000 Gas and Fuel & 2, 700 Freight and Carriage & 3, 500 Factory Lighting & 5, 000 Office Furniture & 5, 000 Patent Right & 18, 800 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 70, 500 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 70, 500 - -------- - - -------- - \end{matrix}$

Adjustments

(a) Machinery is depreciated @ 10 $%$ and buildings depreciated @ 6 $%$ .

(b) Interest on capital @ 4 $%$ .

(d) Closing stock Rs. 50,000.

Q. The following balances has been extracted from the trial of M/s Runway Shine Ltd. Prepare a trading and profit and loss account and a balance sheet as on December 31, 2010.

Account Title	Amt. (Rs.)	Account Title	Amt. (Rs.)
Purchase	1,50,000	Sales	2,50,000
Opening Stock	50,000	Return Outwards	4,500
Return Inwards	2,000	Interest Received	3,500
Carriage Inwards	4,500	Discount Received	400
Cash in Hand	77,800	Creditors	1,25,000
Cash in Bank	60,800	Bills Payable	6,040
Wages	2,400	Capital	1,00,000
Printing and Stationery	4,500
Discount	400
Bad Debts	1,500
Insurance	2,500
Investment	32,000
Debtors	53,000
Bills Receivable	20,000
Postage and Telegraph	400
Commission	200
Interest	1,000
Repair	440
Lighting Charges	500
Telephone Charges	100
Carriage Outward	400
Motor Car	25,000
	4,89,440		4,89,440

Adjustments
1. Further bad debts Rs. 1,000. Discount on debtors Rs. 500 and make a provision on debtors @ 5%.
2. Interest received on investment @ 5%.
3. Wages and interest outstanding Rs. 100 and Rs. 200 respectively.
4. Depreciation charged on motor car @ 5% pa. 5. Closing stock Rs. 32,500.

Q. The following balances have been extracted from the books of M/s Green House for the year ended December 31, 2010, prepare trading and profit and loss account and balance sheet as on this date.

Account Title	Amt. (Rs)	Account Title	Amt. (Rs)
Purchase	80,000	Capital	2,10,000
Bank Balance	11,000	Bills Payable	6,500
Wages	34,000	Sales	2,00,000
Debtors	70,300	Creditors	50,000
Cash in Hand	1,200	Return Outwards	4,000
Legal Expenses	4,000
Building	60,000
Machinery	1,20,000
Bills Receivable	7,000
Office Expenses	3,000
Opening Stock	45,000
Gas and Fuel	2,700
Freight and Carriage	3,500
Factory Lighting	5,000
Office Furniture	5,000
Patent Right	18,800
	4,70,500		4,70,500

Adjustments
(a) Machinery is depreciated @ 10% and buildings depreciated @ 6%.
(b) Interest on capital @ 4%.
(c) Outstanding wages Rs. 50.
(d) Closing stock Rs. 50,000.

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Account Title	Amt. (Dr)	Amt. (Cr)
Drawings and Capital	19,530	67,500
Purchase and Sales	45,000	1,12,500
Salary and Commission	25,470	1,575
Carriage	2,700
Plant and Machinery	27,000
Furniture	6,750
Opening Stock	42,300
Insurance Premium	2,700
Interest		7,425
Bank Overdraft		24,660
Rent and Taxes	2,160
Wages	11,215
Returns	2,385	1,440
Carriage Outwards	1,485
Debtors and Creditors	36,000	58,500
General Expenses	6,975
Octroi	530
Investment	41,400
	2,73,600	2,73,600

Particulars	Amt. (Rs.)	Particular	Amt. (Rs.)
To Opening Stock	42,300	By Sales	3,50,000
To Purchase	45,000	(-) Return Inwards	2,000 3,48,000
(-) Purchase Return	1,440 43,560	By Closing Stock	40,000
To Carriage	2,700
To Wages (+) Outstanding Wages	11,215 50 11,265
To Octroi	530
To Gross Profit	29,760 1,30,115		3,80,000
To Salary	25,470	By Gross Profit b/d	2,11,000
(+) Outstanding Salary	20 25,490	By Rent	5,000
To Rent and Taxes	2,160	By Interest	2,000
To Insurance Premium	2,700	(+) Interest on Investment	150 2,150
To Carriage Outward	1,485
To General Expenses	6,975
To Interest on Capital	6,750
To Depreciation of Plant and Machinery	1,350
To Provision for Debtors	1,800
	48,710		48,710

Liabilities	Amt. (Rs.)	Assets	Amt. (Rs.)
Capital	67,500	Furniture	6,750
(+)Interest on Capital (-) Loss (Net)	6,750 8,973	Plant and Machinery	27,000
(-) Drawings (-) Interest on Drawings	19,530 977 44,770	(-) Depreciation @ 5%	13,50 25,650
Bank Overdraft	24,660	Debtors	36,000
Creditors	58,500	(-) Provision	11,800 34,200
Outstanding Wages	50	Investment	41,400
Outstanding Salary	20	Closing Stock	20,000
	1,28,000		1,28,000