Question

Question

Answer 1

Financial Statements of Shri R. Lal
Trading Account for the year ended March31, 2012
Dr.							Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Opening Stock			11,460	Sales	1,40,370
Purchases		80,000		Less: Return Inwards	4,240	1,36,130
Less: Return Outwards		2,820	77,180	Closing Stock		14,290
Carriage Inwards			2,310
Wages			6,280
Gross Profit (Balancing Figure)			53,190
			1,50,420			1,50,420

Profit and Loss Account for the year ended March 31, 2012
Dr.								Cr.
Particulars				Amount (Rs)	Particulars		Amount (Rs)
Depreciation: (WN1)					Gross Profit		53,190
Building			625		Rent	2,100
Furniture			175		Add: Accrued	200	2,300
Additions to Building			140	940	Discount		190
Salary & Commission			9,870
Add: Outstanding Salaries			570	10,440
Bad Debts			1,400
Add: Further Bad Debts			570
Add: New Provision (WN2)			3,690
Less: Old Provision			3,240	2,420
Interest on Capital				5,000
Rates & Insurance		1,300
Less: Unexpired		240		1,060
Railway Freight on Sales				16,940
Office Expenses				1,340
Printing & Stationery				660
Postage & Telegram				820
Net Profit (Balancing Figure)				16,060
				55,680			55,680

Balance Sheet as on March 31, 2012
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	1,00,000		Fixed Assets
Add: Interest on Capital	5,000		Building	25,000
Add: Net Profit	16,060		Less: Depreciation	625	24,375
Less: Drawings	17,600	1,03,460	Additions to Building	7,000
			Less: Depreciation	140	6,860
Current Liabilities			Office Furniture	3,500
Sundry Creditors		18,920	Less: Depreciation	175	3,325
Outstanding Salaries		570
			Current Assets
			Closing Stock		14,290
			Bills Receivable		1,240
			Accrued Rent		200
			Unexpired Insurance		240
			Cash in Hand		2,210
			Sundry Debtors	62,070
			Less: Further Bad Debts	570
			Less: Provision for Discount on Debtors	3,690	57,810
			Cash at Bank		12,400
		1,22,950			1,22,950

Working Notes

WN1: Calculation of Amount of Depreciation


WN2: Calculation of Provision for Doubtful Debts