Question

Prepare the trading and profit and loss account and balance sheet of M/s Shine Ltd from the following particulars.

Account Title	Amt.(Rs)	Account Title	Amt. (Rs)
Sundry Debtors	1,00,000	Bills Payable	85,550
Bad Debts	3,000	Sundry Creditors	25,000
Trade Expenses	2,500	Provisions for Bad Debts	1,500
Printing and Stationery	5,000	Return Outwards	4,500
Rent, Rates and Taxes	3,450	Capital	2,50,000
Freight	2,250	Discount Received	3,500
Sales Return	6,000	Interest Received	11,260
Motor Car	25,000	Sales	1,00,000
Opening Stock	75,550
Furniture and Fixture	15,500
Purchase	75,000
Drawings	13,560
Investments	65,500
Cash in Hand	36,000
Cash at Bank	53,000
	4,81,310		4,81,310

Adjustments
1. Closing stock was valued Rs.35,000.
2. Depredation charged on furniture and fixture @ 5%.
3. Further bad debts Rs.1,000. Make a provision for bad debts @ 5% on sundry debtors.
4. Depreciation charged on motor car @ 10%.
5. Interest on drawings @ 6%.
6. Rent, rates and taxes was outstanding Rs. 200.
7. Discount on debtors 2%.

Answer 1

Trading and Profit and Loss Account
as on.....
Dr Cr

Particulars	Amt. (Rs.)	Particular	Amt. (Rs.)
To Opening Stock	75,550	By Sales	1,00,000
To Purchase	75,000	(-) Return Inwards	6,000 94,000
(-) Return Outwards	4,500 70,50000	By Closing Stock	35,000
	1,46,050	By Gross Loss c/d	17,050 1,46,050
To Gross Loss b/d	17,050	By Discount Received	3,500
To Bad Debts	3,000	By Interest Received	11,260
(+) Bad Debts	1,000	By Interest on Drawings	814
(+) Provisions for Bad Debts	4,950	By Net Loss	27,482
(-) Old Provision	1,500 7,450
To Trade Expenses	2,500
To Printing and Stationery	5,000
To Rent, Rates and Taxes	3,450
(+) Outstanding Rent	200 3,650
To Freight	2,250
To Depreciation on Furniture	775
To Depreciation on Motor Car	2,500
To Discount on Debtors	1,881
	43,056		43,056

Balance Sheet
as on....
Liabilities Amt. (Rs) Assets Amt. (Rs)

Capital (-) Net Loss (-) Drawings Bills Payable (-) Interest	2,50,000 27,482 2,22,518 13,560 814 2,08,144	Cash in Hand Cash at Bank Investment	36,000 53,000 63,500
Bills Payable	85,550	Motor Car	25,000
Sundry Creditors	25,000	(-) Depreciation @ 10% Furniture and Fixture	2,500 22,500 15,500
Outstanding Rent, Rates and Taxes	200	(-) Depreciation @ 5% Sundry Debtors	775 14,725 1,00,000
		(-) Bad Debts (-) Provision for Bad Debts	1,000 4,950
		(-) Discount on Debt Closing Stock	1,881 92,169 35,000
	3,18,894		3,18,894

Working Note
Sundry Debtors 1,00,000
(-) Further Bad Debts 1,000
99,000
(-) Provision (5%) 4,950
94,050
(-) Discount (2%) 1,881
92,169