Q. Prepare Trading and Profit & Loss Account and Balance sheet from the following Trial Balance as on March 31, 2012.
Trial Balance
Head of AccountsDr.BalanceCr.Balance(Rs) (Rs) Purchase and Sales3,20,0005,30,000Purchase Returns and Sales Returns30,00020,000Opening Stock40,000−Wages15,000−Power Charges30,000−Salaries28,000−Apprenticeship Premium−15,000Rent16,000−Rent Outstanding−4,000October 1,201182,000−Bills Receivable68,000−Bills payable−16,000Plant and Machinery1,60,000−Debtors and Creditors90,00050,000Cash in Hand11,000−Cash at Bank70,000−Capital−3,15,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯9,50,000––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯9,50,000––––––––––
Additional Information:
(a) Closing stock is valued at Rs 25,000.
(b) Goods costing Rs 32,000 purchased from Agra are still in transit.
(c) Apprenticeship premium is for two years. For one year, it is in advance.
(d) Depreciate Plant and Machinery @ 10% and Furniture @ 20%.
(e) Wages of Rs 5,000 are outstanding.
Or
The following is the trial balance of Mr. Rajeev Gautam on 31st March, 2012.
ParticularsDr.AmountCr.Amount(Rs) (Rs) Cash in Hand10,800−Cash at Bank52,600−Purchases8,13,500−Sales−19,75,600Returns Outward−10,000Wages2,09,600−Fuel and Power94,600−Carriage Outwards64,000−Carriage Inwards40,800−Stock(1st April,2011)1,15,200−Building6,00,000−Freehold Land2,00,000−Machinery4,00,000−Salaries3,00,000−Patents1,50,000−General Expenses60,000−Insurance12,000−Capital−14,20,000Drawings1,04,900−Sundry Debtors2,90,000−Sundry Creditors −–––––––––– 1,26,000–––––––––––35,31,600–––––––––––35,31,600–––––––––––
Taking into account the following adjustments, prepare Trading and Profit & Loss Account and the Balance Sheet:
(a) Stock on hand on 31st March, 2011 is Rs 1,36,000.
(b) Machinery is to be depreciated @ 10% and patents @ 20%.
(c) Salary for the month of March, 2012 amounting to Rs 30,000 were unpaid.
(d) Insurance includes a premium of Rs 1,700 due in next year.
(e) Wages include a sum of Rs 40,000 spent on the erection of cycle shed for employees and customers.
(f) A provision for bad debts is to be created to the extent of 5% on Sundry debtors.
