Question

The Trial Balance of Dhanashri Stores as on 31st March 2009 was as follows, Prepare Trading and Profit and Loss A/c for the year ending on 31st March, 2009 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2009
Particulars	Debit Amount Rs	Particulars	Credit Amount Rs
Purchases Opening Stock Debtors Wages Salaries Land & Building Plant and Machinery Furniture Advertisement 15% Investment Insurance Cash in hand Rent Power and Fuel Drawing Accrued Interest on Investment	25,000 12,000 20,000 5,000 8,000 30,000 25,000 16,000 6,000 10,000 2,000 5,500 7,000 3,000 3,000 500	Capital Sales Creditors Bank Loan Commission Discount Interest on Investment	70,000 70,000 21,000 10,000 5,000 500 1,500
Total	1,78,000	Total	1,78,000

Adjustment:

1) Closing stock was valued at Rs 32,000.

2) Outstanding expenses were Rs 1,000 wages and Rs 2,000 salary.

3) Provide R.D.D. at 5% on debtors and 2% provision for discount on debtors.

4) Depreciation Land and Building at 5% and Machinery by 10% p.a.

Answer 1

Financial Statements of Dhanashri Stores
Trading Account for the year ended 31st March, 2009
Dr.	Cr.
Particulars			Amount (Rs)	Particulars	Amount (Rs)
Opening Stock			12,000	Sales	70,000
Purchases			25,000	Closing Stock	32,000
Wages		5,000
Add: Outstanding		1,000	6,000
Power & Fuel			3,000
Gross Profit (Balancing Figure)			56,000
			1,02,000		1,02,000

Profit and Loss Account for the year ended March 31, 2009
Dr.	Cr.
Particulars			Amount (Rs)	Particulars	Amount (Rs)
Insurance			2,000	Gross Profit	56,000
Advertisement			6,000	Interest	1,500
Salaries		8,000		Commission	5,000
Add:Outstanding		2,000	10,000	Discount	500
Depreciation on:
Land & Building		1,500
Plant & Machinery		2,500	4,000
Rent			7,000
R.D.D			1,000
Discount on Debtors			380
Net Profit (Balancing Figure)			32,620
			63,000		63,000

Balance Sheet as on March 31, 2009
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	70,000		Fixed Assets
Less:Drawings	(3,000)		Land & Building	30,000
Add: Net Profit	32,620	99,620	Less:Depreciation @ 5%	(1,500)	28,500
			Plant &Machinery	25,000
Current Liabilities			Less:Depreciation @ 10%	(2,500)	22,500
Creditors		21,000	15% Investment		10,000
Bank Loan		10,000	Furniture		16,000
Outstanding Wages		1,000
Outstanding Salaries		2,000	Current Assets
			Closing Stock		32,000
			Debtors	20,000
			Less:R.D.D	(1,000)
			Less: Discount on Debtors	(380)	18,620
			Cash in Hand		5,500
			Accrued Interest		500
		1,33,620			1,33,620