The following trial balance has been prepared by an inexperienced accountant. Redraft it in a correct form :−

Name of Accounts Balance
Dr.
Balance

Cr.

₹ ₹

Land and Building 1,20,000

Plant and Machinery 92,000

Wages 18,200

Discount Allowed 1,620

Discount Received 730

Purchases 1,26,000

Sales 2,40,000

Return Inwards 6,500

Return Outwards 3,370

Opening Stock 15,000

Debtors 30,000

Creditors 20,000

Carriage on Sales 3,280

Carriage on Purchase 2,800

Insurance 1,500

General Expenses 6,100

Cash in Hand 2,400

Bank Overdraft 12,100

Capital 1,54,000

Drawings 4,800

Total 4,30,200 4,30,200

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Solution

Trial Balance

Name of Accounts
L.F.
Debit

Balance

(Rs)

Credit

Balance

(Rs)

Land & Building 1,20,000

Plant & Machinery 92,000

Wages 18,200

Discount Allowed 1,620

Discount Received 730

Purchases 1,26,000

Sales 2,40,000

Return Inwards

6,500

Return Outwards

3,370

Opening Stock

15,000

Debtors

30,000

Creditors

20,000

Carriage on Sales

3,280

Carriage on Purchases

2,800

Insurance A/c

1,500

General Expenses

6,100

Cash in Hand

2,400

Bank Overdraft

12,100

Capital

1,54,000

Drawings

4,800

Total

4,30,200

4,30,200

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Similar questions

Q. From the following Trial Balance of Shubho, prepare final accounts for the year ended 31st March, 2019 and Balance Sheet as at that date:


Particulars	Dr. Balances (₹)	Cr. Balances (₹)
Land and Building	50,000
Purchases (Adjusted)	2,10,000
Stock (31st March, 2019)	45,000
Returns Inward	1,500
Returns Outward		2,500
Wages	45,300
Salaries	39,000
Office Expenses	15,400
Carriage Inwards	1,200
Carriage Outwards	2,000
Discount allowed	750
Discount received		1,200
Bad Debts	1,200
Sales		3,85,000
Capital Account		1,15,000
Chatterji's Loan A/c (taken on 1st Oct., 2018 @ 18% p.a.		25,000
Insurance	1,500
Commission		1,500
Plant and Machinery	50,000
Furniture and Fixtures	20,000
Bills Receivable	20,000
Sundry Debtors	40,000
Sundry Creditors		25,000
Cash at Bank	16,000
Office Equipments	12,000
Bills Payable		12,350
Expenses Payable		3,300
Total	5,70,850	5,70,850

The following adjustments be taken care of:
(i) Depreciate Land and Building @ 6%, Plant and Machinery @ 10%, Office equipments @ 20% and Furniture and Fixtures @ 15%.
(ii) Calculate Provision for Doubtful Debts at 2% on Sundry Debtors.
(iii) Insurance premium includes ₹ 250 Insurance Premium paid in advance.
(iv) Provide salary to Shubho ₹ 15,000 p.a.
(v) Outstanding Salaries ₹ 11,500.
(vi) 10% of the final profit is to be transferred to General Reserve.

Q. From the following Trial Balance of Shubdo Banerjee, prepare final accounts for the year ended in 31st March, 2018 and Balance Sheet as at that date:


Particulars	Dr. Balances (₹)	Cr. Balances (₹)
Land and Building	50,000
Purchases (Adjusted)	2,10,000
Stock (31st March, 2018)	45,000
Returns Inward	1,500
Returns Outward		2,500
Wages	45,300
Salaries	39,000
Office Expenses	15,400
Carriage Inwards	1,200
Carriage Outwards	2,000
Discount allowed	750
Discount received		1,200
Bad Debts	1,200
Sales		3,85,000
Capital Account		1,15,000
Chatterji's Loan A/c (taken on 1st Oct., 2017 @ 18% p.a.		25,000
Insurance	1,500
Commission		1,500
Plant and Machinery	50,000
Furniture and Fixtures	20,000
Bills Receivable	20,000
Sundry Debtors	40,000
Sundry Creditors		25,000
Cash at Bank	16,000
Office Equipments	12,000
Bills Payable		12,350
Expenses Payable		3,300
Total	5,70,850	5,70,850

The following adjustments be taken care of:
(i) Depreciate Land and Building @ 6%, Plant and Machinery @ 10%, Office equipments @ 20% and Furniture and Fixtures @ 15%
(ii) Calculate Provision for Doubtful Debts at 2% on Debtors.
(iii) Insurance premium includes ₹250 paid in advance.
(iv) Provide salary to Banerjee ₹15,000 p.a.
(v) Outstanding Salaries ₹11,500.
(vi) 10% of the final profit is to be transferred to General Reserve.

The following is the Trial Balance of Mr. Deepak as on March 31, 2017. You are required to prepare trading account, profit and loss account and a balance sheet as on date:

Account title	Debit Amount Rs	Account title	Credit Amount Rs
Drawings	36,000	Capital	2,50,000
Insurance	3,000	Bills payable	3,600
General expenses	29,000	Creditors	50,000
Rent and taxes	14,400	Discount received	10,400
Lighting (factory)	2,800	Purchases return	8,000
Travelling expenses	7,400	Sales	4,40,000
Cash in hand	12,600
Bills receivable	5,000
Sundry debtors	1,04,000
Furniture	16,000
Plant and Machinery	1,80,000
Opening stock	40,000
Purchases	1,60,000
Sales return	6,000
Carriage inwards	7,200
Carriage outwards	1,600
Wages	84,000
Salaries	53,000

Closing stock Rs 35,000.

Q. Prepare a Trial Balance from the following balances as at 31st March 2017 :−

	(₹)		(₹)
Stock on 1-4-2016	28,800	Returns Inwards	7,500
Purchases	82,000	Returns Outwards	5,600
Sales	1,60,000	Carriage Inwards	1,640
Wages	16,160	Carriage Outwards	3,200
Salaries	6,400	Furniture	12,000
Repair Charges	500	Motor Car	80,000
Commission Received	800	Cash in Hand	4,700
Sundry Debtors	24,200	Bank Overdraft	25,400
Sundry Creditors	7,300	Investments	20,000
Capital	90,000	Interest on Investments	2,400
Drawings	4,400

Q. On 31st March, 2018 the following Trial Balance was extracted from the books of Mohan:


Particulars	Debit Balances (₹)	Credit Balances (₹)
Capital		3,00,000
Plant and Machinery	50,000
Debtors	2,00,000
Creditors		1,00,000
Loan		95,000
Interest on Loan	3,000
Cash	20,000
Provision for Doubtful Debts		7,000
Stock on 1st April, 2017	68,000
Motor Vehicles	1,00,000
Bank	35,000
Land and Building	1,20,000
Bad Debts	5,000
Purchases	6,60,000
Sales		11,00,000
Purchases Return		15,000
Sales Return	80,000
Carriage Outwards	25,000
Carriage Inwards	30,000
Salaries	90,000
Rent and Insurance	30,000
Advertising	35,000
Discount Received		5,000
General Expenses	34,000
Bills Receivable	60,000
Bills Payable		20,000
Rent Received		3,000
Total	16,45,000	16,45,000

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after taking into account the following:
(a) Stock as at 31st March, 2018 was valued at ₹70,000.
(b) All debtors are considered good for recovery.
(c) Depreciate Motor Vehicles by 20%.
(d) Bank intimation of customer's cheque of ₹10,000 being dishonoured is not recorded in the books.
(e) Travelling expenses of ₹5,000 paid to sales person was wrongly debited to his Personal Account and was included in debtors.
(f) Amount of ₹6,000 received from Ronit was credited to his account and was included in creditors. This amount was written off as bad debt in earlier years.
(g) Drawings included an amount of ₹2,000 being amount drawn in cash. It was used by Mohan for Purchase of stationery used in business.

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Name of Accounts	Balance Dr.	Balance Cr.
	₹	₹
Land and Building	1,20,000
Plant and Machinery	92,000
Wages	18,200
Discount Allowed		1,620
Discount Received	730
Purchases	1,26,000
Sales		2,40,000
Return Inwards		6,500
Return Outwards	3,370
Opening Stock	15,000
Debtors	30,000
Creditors		20,000
Carriage on Sales		3,280
Carriage on Purchase	2,800
Insurance	1,500
General Expenses	6,100
Cash in Hand	2,400
Bank Overdraft	12,100
Capital		1,54,000
Drawings		4,800
Total	4,30,200	4,30,200

Trial Balance
Name of Accounts	L.F.	Debit Balance (Rs)	Credit Balance (Rs)
Land & Building		1,20,000
Plant & Machinery		92,000
Wages		18,200
Discount Allowed		1,620
Discount Received			730
Purchases		1,26,000
Sales			2,40,000
Return Inwards		6,500
Return Outwards			3,370
Opening Stock		15,000
Debtors		30,000
Creditors			20,000
Carriage on Sales		3,280
Carriage on Purchases		2,800
Insurance A/c		1,500
General Expenses		6,100
Cash in Hand		2,400
Bank Overdraft			12,100
Capital			1,54,000
Drawings		4,800
Total		4,30,200	4,30,200