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Published on: 04/10/2019
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1.
In the following Trading and Profit and Loss Account for the year ended 31st March, 2017 and Balance Sheet as on that date, determine the missing information:
| Particulars | Amount (Rs) | Particulars | Amount (rs) | ||
|---|---|---|---|---|---|
| To Opening Stock | 34,600 | By Sales | 1,54,500 | ||
| To Purchases | 54,750 | Less: Sales Return | 2,000 | 1,52,500 | |
| Less: Purchases Returns | 1.250 | 53,500 | By Closing Stock | ... | |
| To Gross Profit transferred to Profit and Loss A/c | ... | ||||
| ... | ... | ||||
| To Salaries | 33,000 | By Gross Profit transferred from Trading A/c | ... | ||
| Add: Outstanding | ... | ... | By Commission | 3,750 | |
| To General Expenses | 7,820 | Less: Received in Advance | ... | 2,500 | |
| To Taxes and Insurance | 12,500 | ||||
| Add: Outstanding Taxes | ... | ||||
| 13,700 | |||||
| Less: Prepaid Insurance | ... | ||||
| To Interest | 1,180 | ||||
| Add: Outstanding Int. on Bank Loan | 850 | 2,030 | |||
| To Advertisement | 4,500 | ||||
| To Bad Debts | 1,250 | ||||
| Add: Further Bad Debts | 1,000 | ||||
| Provision for Doubtful Debts (New) | 1,850 | ||||
| 4,100 | |||||
| Less: Existing Provision | 2,000 | 2,100 | |||
| To Depreciation: | |||||
| 5% on Building | 3,750 | ||||
| 10% on Furniture | 640 | ||||
| 20% on Motor Vehicles | 12,500 | 16,890 | |||
| To Net Profit transferred to Capital A/c | ... | ||||
| 99,400 | 99,400 | ||||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
|---|---|---|---|---|---|
| Current Liabilities | Current Assets | ||||
| Creditors | 25,000 | Cash | 6,500 | ||
| Bank Loan | 28,500 | Debtors | ... | ||
| Add: Outstanding Int. | 850 | 29,350 | Less: (Further) Bad Debts | ... | |
| Outstanding Expenses | ... | ||||
| Outstanding Taxes | 1,200 | Less: Prov. for Doubtful Debt. | ... | 35,150 | |
| Outstanding Salaries | 3,000 | 4,200 | Insurance Prepaid | 1,000 | |
| Commission Rec. in Adv. | 1,250 | Closing Stock | 32,500 | ||
| Capital Balance | 1,25,000 | Fixed Assets | |||
| Add: Net Profit | ... | 1,42,360 | Furniture | 6,400 | |
| Less: Depreciation | ... | ||||
| Motor Vehicles | 62,500 | ||||
| Less: Depreciation | ... | ||||
| Building | 75,000 | ||||
| Less: Depreciation | ... | ... | |||
| 2,02,160 | 2,02,160 | ||||
2.
Following Trial Balance is extracted from the books of a merchant as at 31st March, 2018
| Particulars | Dr. Rs | Cr. Rs |
|---|---|---|
| Furniture and Fittings | 64,000 | - |
| Motor Vehicles | 6,25,000 | - |
| Building | 7,50,000 | - |
| Capital A/c | - | 12,50,000 |
| Bad Debts | 12,500 | - |
| Provision for Doubtful Debts | - | 2,50,000 |
| Sundry Debtors | 3,80,000 | - |
| Sundry Creditors | - | 2,50,000 |
| Opening Stock | 3,46,000 | - |
| Purchases | 5,47,500 | - |
| Sales | - | 15,45,000 |
| Bank Loan | - | 3,05,000 |
| Sales Return | 20,000 | - |
| Purchases Return | - | 12,500 |
| Advertising | 45,000 | - |
| Interest | 11,800 | - |
| Commission Received | - | 37,500 |
| Cash | 65,000 | - |
| Insurance | 1,25,000 | - |
| General Expenses | 78,200 | - |
| Salaries | 3,30,000 | - |
| Input CGST | 50,000 | - |
| Input SGST | 50,000 | - |
| Output CGST | - | 40,000 |
| Output SGST | - | 40,000 |
| Total | 35,00,000 | 35,00,000 |
The following adjustments are to be made:
(i) Stock in Hand on 31st March, 2018 was Rs.3,25,000.
(ii) Depreciate Building @ 5% Furniture and Fittings @ 10% and Motor Vehicles @ 2018.
(iii) Rs.8,500 is due for interest on Bank Loan.
(iv) Salaries Rs.30,000 and taxes Rs.12,000 are outstanding.
(v) Insurance amounted to Rs.10,000 is prepaid. CGST and SGST is paid @ 6% each.
(vi) One-third of the commission received is in respect of work to be done next year IGST is charged @ 12%.
(vii) Write off further Rs.10,000 as Bad Debts and Provision for Doubtful Debts is to be made equal to 5% on Sundry Debtors.
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at the date.
3.
The following balances appeared in the trial balance of M/s Kapil Traders as on March 31, 2014 :
| Sundry debtors | 30,500 |
| Bad debts | 500 |
| Provision for bad debts | 2,000 |
The partners of the firm agreed to records the following adjustments in the books of the Firm: Further bad debts 300. Maintain provision for bad debts 10%.
Show the following adjustments in the bad debts account, provision account, debtors account, profit and loss account and balance sheet.
4.
Prepare Trading and Profit and Loss Account and Balance Sheet from the following Trial Balance and information as on 31st December, 2016 :
| Particulars | Debit (Rs) | Credit (Rs) |
|---|---|---|
| Stock (1st January, 2016) | 16,000 | |
| Sales | 7,00,000 | |
| Purchases | 3,00,000 | |
| Wages | 40,000 | |
| Rent and Rates | 30,000 | |
| Salaries | 46,000 | |
| Insurance | 15,000 | |
| Machinery | 72,000 | |
| Building | 11,50,000 | |
| Capital less Drawing | 6,00,000 | |
| Sundry Debtors | 65,000 | |
| Sundry Creditors | 32,000 | |
| Furniture | 36,000 | |
| Cash in Hand | 14,400 | |
| Bad Debts | 5,000 | |
| Bank | 12,000 | |
| General Expenses | 5,000 | |
| Secured Loan | 4,78,000 | |
| Carriage Inwards | 3,600 | |
| Total | 18,10,000 | 18,10,000 |
Adjustments :
(i) Closing Stock was valued at Rs 15,000.
(ii) Depreciation on Machinery @ 10% p.a.
(iii) Make a provision @ 5 %for Doubtful Debts.
(iv) Provide \(2\frac { 1 }{ 2 } \)% discount on debtors.
(v) Prepaid insurance Rs 1,200
(vi) Outstanding salaries Rs 11,800.
5.
Prepare the bad debts account, provision for account, profit and loss account and balance sheet from the following information as on March 31, 2014.
| Debtors | 80,000 |
| Bad debts | 2,000 |
| Provision for bad debts | 5,000 |
Adjustments :
Bad debts 500 Provision on debtors @ 3%.
6.
Prepare Trading and Profit & Loss Account for the year ending 31st March, 2015 and a Balance Sheet as on that date from the following Trial Balance:
| Name of Accounts | Amount (Rs) | Name of Accounts | Amount (Rs) |
|---|---|---|---|
| Drawings | 9,000 | Sales | 3,20,000 |
| Plants & Fixtures | 16,000 | Sundry Creditors | 24,000 |
| Purchases | 2,32,000 | Capital | 80,000 |
| Carriage Inward | 4,000 | Bills Payable | 18,000 |
| Wages | 16,000 | ||
| Returns Inward | 8,000 | ||
| Salaries | 20,000 | ||
| Printing | 1,600 | ||
| Advertising | 2,400 | ||
| Trade Charges | 1,200 | ||
| Rent | 2,800 | ||
| Debtors | 50,000 | ||
| Bills Receivable | 10,000 | ||
| Investments | 30,000 | ||
| Discount | 1,000 | ||
| Cash at Bank | 32,000 | ||
| Cash-in-Hand | 6,000 | ||
| 4,42,000 | 4,42,000 |
Adjustments :
(i) Closing Stock was Rs 52,000
(ii) Rs 1,000were as bad debts and Provision for doubtful debts be created on sundry debtors @5%
(ill) Interest on capital is to be provided @ 6%p.a.
(iv) An additional capital of Rs 20,000 introduced by proprietor on 1st Oct., 2014.
(v) Plant & Fixtures to be depreciated by 10% p.a.
(vi) Salaries outstanding on 31st March, 2015 amounted to Rs 1,000.
(vii) Accrued Interest on investment amounted to 1,500
7.
On 1st January, 2012 Mis Kanti Bros. had a bad debts provision of Rs 1,650. On 31st December, 2012 the total debtors amounted to Rs 28,400 out of which Rs 400 were bad and had to be written off. The firm wants to maintain the Bad debts provision of 5 per cent on the debtors.
On 31st December, 2013 total debtors amounted to Rs 20,500 out of which Rs 500 had to be written off as bad debts. The provision is to be maintained at 5% of the debtors. Show the bad debts account and the bad debts provision account for 2012 and 2013.
8.
Show the treatment of following information in the Profit & Loss Account and Balance Sheet as on March 31,2014.
| Particulars | Debit (Rs) | Credit (Rs) |
|---|---|---|
| Capital | - | 50,000 |
| Carriage and Cartage unpaid | - | 100 |
| Interest accrued | 400 | - |
| Rent received in advance | - | 700 |
| Outstanding salaries | - | 300 |
| Depreciation | 700 | - |
| Interest on Capital | 800 | - |
| Interest on Drawings | - | 400 |
9.
Show the following items in Profit & Loss Account and Balance Sheet.
| Name of Account | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|---|---|---|---|
| Sundry Debtors | 80,000 | - | |
| Bad Debts | 2,000 | - | |
| Provision for doubtful debts | - | 7,000 |
Adjustments :
1. Further Bad Debts amounted of Rs 1,000.
2. Create a provision for doubtful debts on Sundry Debtors @ 5%.
3. Make a provision of discount on Sundry Debtors @ 2% .
You are also required to pass Journal Entries for the above transactions.
10.
From the following Trial Balance of Rohit Sharma, prepare Trading and Profit & Loss Account for the year ending 31st March 2016 and a Balance Sheet on the same date after making necessary adjustments :
| Name of Account | L.F. | Debit Amount (Rs.) |
Credit Amount (Rs.) |
|---|---|---|---|
| Stock on 01 April, 2015 | 12,000 | ----- | |
| Capital | ----- | 62,000 | |
| Purchases | 40,000 | ----- | |
| Discount Received | ----- | 400 | |
| Sales | ----- | 86,000 | |
| Sales Returns | 6,000 | ----- | |
| Building | 50,000 | ----- | |
| Debtors | 16,000 | ----- | |
| Salaries | 2,400 | ----- | |
| Office Expenses | 1,200 | ----- | |
| Wages | 10,000 | ----- | |
| Purchases Returns | ----- | 4,000 | |
| Interest | ----- | 800 | |
| Travelling Expenses | 400 | ----- | |
| Fire Insurance | 800 | ----- | |
| Machinery | 20,000 | ----- | |
| Carriage Inward | 700 | ----- | |
| Commission | 500 | ----- | |
| Cash-in-hand | 2,500 | ----- | |
| Rent and Taxes | 1,800 | ----- | |
| Creditors | ----- | 10,800 | |
| 1,64,000 | 1,64,000 |
Adjustments :
1. Closing stock was Rs. 16,000.
2. Wages Rs.2,000 and salaries Rs.1,200 are outstanding.
3. Rent for two months at the rate of Rs.500 per month is outstanding.
4. Depreciation Building by 5% and Machinery by 10%.
5. Prepaid insurance Rs. 200.
1.
| Particulars | Amount (Rs) | Particulars | Amount (rs) | ||
|---|---|---|---|---|---|
| To Opening Stock | 34,600 | By Sales | 1,54,500 | ||
| To Purchases | 54,750 | Less: Sales Return | 2,000 | 1,52,500 | |
| Less: Purchases Returns | 1.250 | 53,500 | By Closing Stock | 32,500 | |
| To Gross Profit transferred to Profit and Loss A/c | 96,900 | ||||
| 1,85,000 | 185,000 | ||||
| To Salaries | 33,000 | By Gross Profit transferred from Trading A/c | 96,900 | ||
| Add: Outstanding | 3,000 | 36,000 | By Commission | 3,750 | |
| To General Expenses | 7,820 | Less: Received in Advance | 1,250 | 2,500 | |
| To Taxes and Insurance | 12,500 | ||||
| Add: Outstanding Taxes | 1,200 | ||||
| 13,700 | |||||
| Less: Prepaid Insurance | 1,000 | 12,700 | |||
| To Interest | 1,180 | ||||
| Add: Outstanding Int. on Bank Loan | 850 | 2,030 | |||
| To Advertisement | 4,500 | ||||
| To Bad Debts | 1,250 | ||||
| Add: Further Bad Debts | 1,000 | ||||
| Provision for Doubtful Debts (New) | 1,850 | ||||
| 4,100 | |||||
| Less: Existing Provision | 2,000 | 2,100 | |||
| To Depreciation: | |||||
| 5% on Building | 3,750 | ||||
| 10% on Furniture | 640 | ||||
| 20% on Motor Vehicles | 12,500 | 16,890 | |||
| To Net Profit transferred to Capital A/c | 17,360 | ||||
| 99,400 | 99,400 | ||||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
|---|---|---|---|---|---|
| Current Liabilities | Current Assets | ||||
| Creditors | 25,000 | Cash | 6,500 | ||
| Bank Loan | 28,500 | Debtors | 38,000 | ||
| Add: Outstanding Int. | 850 | 29,350 | Less: (Further) Bad Debts | 1,000 | |
| Outstanding Expenses | 37,000 | ||||
| Outstanding Taxes | 1,200 | Less: Prov. for Doubtful Debt. | 1,850 | 35,150 | |
| Outstanding Salaries | 3,000 | 4,200 | Insurance Prepaid | 1,000 | |
| Commission Rec. in Adv. | 1,250 | Closing Stock | 32,500 | ||
| Capital Balance | 1,25,000 | Fixed Assets | |||
| Add: Net Profit | 17,360 | 1,42,360 | Furniture | 6,400 | |
| Less: Depreciation | 640 | ||||
| Motor Vehicles | 62,500 | ||||
| Less: Depreciation | 12,500 | ||||
| Building | 75,000 | ||||
| Less: Depreciation | 3,750 | 71,250 | |||
| 2,02,160 | 2,02,160 | ||||
2.
| Particulars | Rs | Particulars | Rs | ||
|---|---|---|---|---|---|
| To Opening Stock | 3,46,000 | By Sales | 15,45,000 | ||
| To Purchases | 5,47,500 | Less : Sales Return | 20,000 | 15,25,000 | |
| Less : Purchases Return | 12,500 | 5,35,000 | By Closing Stoc | 3,25,000 | |
| To Gross Profit c/d | 9,69,000 | ||||
| (Transferred to Profit and Loss A/c) | |||||
| 18,50,000 | 18,50,000 | ||||
| To Salaries | 3,30,000 | By Gross Profit b/d | 969000 | ||
| Add: Outstanding | 30,000 | 3,60,000 | By Commission Received | 37,500 | |
| To General Expenses | 78,200 | Less: Received in Advance | 12,500 | 25000 | |
| To Insurance | 1,25,000 | ||||
| Add: Outstanding Taxes | 12,000 | ||||
| 1,37,000 | |||||
| Less : Prepaid Insurance | 10,000 | 1,27,000 | |||
| To Interest | 11,800 | ||||
| Add: Outstanding Interest on | |||||
| Bank Loan | 8,500 | 20,300 | |||
| To Advertising | 45,000 | ||||
| To Bad Debts | 12,500 | ||||
| Add: Further Bad Debts | 10,000 | ||||
| Provision for Doubtful Debts | 18,500 | ||||
| 14,000 | |||||
| Less: Existing Provision | 20,000 | 21,000 | |||
| ToDepreciation: | |||||
| 5% on Building | 37,500 | ||||
| 10% on Furniture | 6,400 | ||||
| 20% on Motor Vehicles | 1,25,000 | 1,68,900 | |||
| To Net Profit transferred to A/C | 1,73,600 | ||||
| 9,94,000 | 9,94,000 | ||||
| Liabilities | Rs | Assets | Rs | ||
|---|---|---|---|---|---|
| Current Liabilities | Current Assets | ||||
| Sundry Creditors | 2,50,000 | Cash | 65,000 | ||
| Bank Loan | 3,05,000 | Sundry Debtors | 3,80,000 | ||
| Add: Outstanding interest | 8,500 | 3,13,500 | Less: Further Bad Debts | 10,000 | |
| Outstanding Taxes | 12,000 | 3,70,000 | |||
| Outstanding Salaries | 30,000 | Less : Provision for Doubtful Debts | 18,500 | 3,51,500 | |
| Commission Received in Advance | 42,000 | Prepaid Insurance | 10,000 | ||
| Capital | Closing Stock | 3,25,000 | |||
| Opening Balance | 12,50,000 | Input CGST Rs.50,000 - Rs. 40,000) | 10,000 | ||
| Add: Net Profit | 1,73,600 | 14,23,600 | Input SGST (Rs.50,000 - Rs.40,000) | 10,000 | |
| Fixed Assets | |||||
| Furniture and Fittings | 64,000 | ||||
| Less: Depreciation | 6,400 | 57,600 | |||
| Motor Vehicles | 6,25,000 | ||||
| Less: Depreciation | 1,25,000 | 5,00,000 | |||
| Building | 7,50,000 | ||||
| Less: Deprecation | 37,500 | 7,12,500 | |||
| 20,41,600 | 20,41,600 | ||||
3.
Dr. Sundry Debtors Account Cr.
| Date | Particulars | L.F. | Amount(Rs.) | Date | Particulars | L.F. | Amount(Rs.) |
|---|---|---|---|---|---|---|---|
| To Bal. b/d | 30,500 | By Bad Debts | 300 | ||||
| By Prov. for D/D | 3,020 | ||||||
| By Bal. c/d | 27,180 | ||||||
| 30,500 | 30,500 |
Dr. Bad Debts Account Cr.
| Date | Particulars | L.F. | Amount(Rs.) | Date | Particulars | L.F. | Amount(Rs.) |
|---|---|---|---|---|---|---|---|
| To Bal. b/d | 500 | By Provision for Bad | 800 | ||||
| To Sundry Debtors | 300 | Debts | |||||
| 800 | 800 |
Dr. Provision Account Cr.
| Date | Particulars | L.F. | Amount(Rs.) | Date | Particulars | L.F. | Amount(Rs.) |
|---|---|---|---|---|---|---|---|
| To Bal. b/d | 800 | By Bal. b/d | 2,000 | ||||
| To Bal. c/d (10% of 30,500-300) | 3,020 | By Bal. A/c | 1,820 | ||||
| 3,820 | 3,820 |
Dr. Profit and Loss Account for the ended March 31, 2014 Cr.
| Expenses | (Rs.) | Revenue/Gains | (Rs.) | |
|---|---|---|---|---|
| Bad debts | 500 | |||
| Add : Further Bad debts | 300 | |||
| 800 | ||||
| Add: New Provision | 3,020 | |||
| 3,820 | ||||
| Less: Old Provision | 2,000 | 1,820 |
Balance Sheet as at March 31, 2014
| Liabilities | Amount(Rs.) | Assets | Amount(Rs.) | |
|---|---|---|---|---|
| Sundry Debtors | 30,500 | |||
| Less: Further Bad Debts | 300 | |||
| 30,200 | ||||
| Less: New Provision | 3,020 | 27,180 |
4.
| Particulars | Amount (Rs) | Particulars | Amount (rs) | |
|---|---|---|---|---|
| To Opening Stock | 16,000 | By Sales | 7,00,000 | |
| To Purchases | 3,00,000 | By Closing Stock | 15,000 | |
| To Wages | 40,000 | |||
| To Carriage Inward | 3,600 | |||
| To Gross Profit c/d | 3,55,400 | |||
| 7,15,000 | 7,15,000 | |||
| To Depreciation: | By Gross Profit b/d | 3,55,400 | ||
| To Salaries | 46,000 | |||
| To O/s Salary | 11,800 | 57,800 | ||
| To Insurance | 15,000 | |||
| Less : Prepaid | 1,200 | 13,800 | ||
| To General Expenses | 5,000 | |||
| To Rent and Rates | 30,000 | |||
| To Bad Debts | 5,000 | |||
| To Provision for Bad Debts | 3,250 | |||
| To Provision for Discount on debtors | 15,44 | |||
| To Net Profit | 2,31,806 | |||
| 3,55,400 | 3,55,400 | |||
| Liabilities | Amount (R | Assets | Amount (Rs) | ||
|---|---|---|---|---|---|
| Capital | 6,00,000 | Furniture | 36,000 | ||
| Add: Net Profit | 2,31,806 | 8,31,806 | Closing Stock | 15,000 | |
| Machinery | 72,000 | ||||
| Less: Depreciation | 7,200 | 64,800 | |||
| O/s Salaries | 11,800 | Cash in hand | 14,400 | ||
| S. Creditors | 32,000 | Prepaid Insurance | 1,200 | ||
| Loan | 47,8000 | Building | 11,50,000 | ||
| S. Debtors | 65,000 | ||||
| - Prov. for B/d | 3,250 | ||||
| - Prov. for Discount | 1,544 | 60,206 | |||
| Bank | 12,000 | ||||
| 13,53,606 | 13,53,606 | ||||
5.
| Date | Particulars | L.F. | Amount(Rs.) | Date | Particulars | L.F | Amount(Rs.) |
|---|---|---|---|---|---|---|---|
| To Bal. b/d | 2,000 | By Provision for bad debts | 2,500 | ||||
| To Sundry Debtors | 500 | ||||||
| 2,500 | 2,500 |
Provision for Bad Debts Account
| Date | Particulars | L.F. | Amount(Rs.) | Date | Particulars | L.F | Amount(Rs.) |
|---|---|---|---|---|---|---|---|
| To Bad Debts A/c | 2,500 | By Bal.B/d | 5,000 | ||||
| To Bal. c/d | 2,385 | ||||||
| To P&L A/c | 115 | ||||||
| 5,000 | 5,000 |
Dr. Profit and Loss Account for the year ended March 31, 2014 Cr.
| Expenses | (Rs.) | Revenue/Gains | (Rs.) | |
|---|---|---|---|---|
| Old Provision | 5,000 | |||
| Less: New Provision | 2,385 | |||
| 2,615 | ||||
| Less :Bad debts | 2,000 | |||
| 615 | ||||
| Less: Further Bad debts | 500 | 115 |
Balance Sheet as at March 31, 2014
| Liabilities | Amount(Rs.) | Assets | Amount(Rs.) | |
|---|---|---|---|---|
| Sundry Debtors | 80,000 | |||
| Less :Further Bad Debts | 500 | |||
| 79,500 | ||||
| Less: New Provision | 2,385 | 77,115 |
6.
| Particulars | Amount (Rs) | Particulars | Amount (Rs) | ||
|---|---|---|---|---|---|
| To Purchases | 2,32,000 | By Sales | |||
| To Carriage Inward | 4,000 | Less : Returns | 3,20,000 | ||
| To Wages | 16,000 | 8,000 | 3,12,000 | ||
| To Gross Profit c/d | 1,12,000 | By Closing Stock | 52,000 | ||
| 3,64,000 | 3,64,000 | ||||
| To Bad Debts | 1,000 | By Gross Profit b/d | 1,12,000 | ||
| To Provision for bad debts | 2,450 | By Accrued Interest on Investment | 1,500 | ||
| To Interest on Capital | 4,200 | ||||
| To Depreciation on Plant & Fixtures | 1,600 | ||||
| To Salaries | 20,000 | ||||
| Add: Salaries | 1,000 | 21,000 | |||
| To Printing | 1,600 | ||||
| To Advertising | 2,400 | ||||
| To Trade Charges | 1,200 | ||||
| To Rent | 2,800 | ||||
| To Discount | 1,000 | ||||
| To Net Profit c/d | 74,250 | ||||
| 1,13,500 | 1,13,500 | ||||
| Liabilities | Amount(Rs) | Assets | Amount (Rs) | ||
|---|---|---|---|---|---|
| Sundry Creditors | 24,000 | Plant and Fixture | 16,000 | ||
| Capital | 80,000 | Less: Depreciation | 1,600 | 14,400 | |
| Add: Net Profit | 74,250 | Debtors | 50,000 | ||
| Add: Interest on capital | 4,200 | Less : Bad debts | 1,000 | ||
| Less: Drawing | 9,000 | 1,49,450 | Less : Provision | 2,450 | 46,550 |
| Bills Payable | 18,000 | Investment | 30,000 | ||
| Outstanding Salary | 1,000 | Add: Acc. Int. | 1,500 | 31,500 | |
| Cash at Bank | 32,000 | ||||
| Cash-in-hand | 6,000 | ||||
| Bills Receivable | 10,000 | ||||
| Closing Stock | 52,000 | ||||
| 1,92,450 | 1,92,450 | ||||
7.
| Date | Particulars | J.F. | Amount (Rs) | Date | Particulars | J.F. | Amount (rs) |
|---|---|---|---|---|---|---|---|
| 2012 | 2012 | ||||||
| Dec. 31 | T0 Sundry Debtors | 400 | Dec. 31 | By Transfer to Provision for Bad Debts Provision A/c | 400 | ||
| 400 | 400 | ||||||
| 2013 | 2013 | ||||||
| Dec.31 | To Sundry Debtors | 500 | Dec. 31 | By Transfer to Provision for Debts Provision A/c | 500 | ||
| 500 | 500 |
| Date | Particulars | J.E. | Amount (Rs) | Date | Particulars | J.E. | Amount (Rs) |
|---|---|---|---|---|---|---|---|
| 2012 | 2012 | ||||||
| Dee. 31 | To Bad Debts A/c | 400 | Jan. 01 | By Balance b/d | 1,650 | ||
| Dec. 31 | To Balance c/d | 1,400 | Dec. 31 | By Profit & Loss A/c | 150 | ||
| 1,800 | 1,800 | ||||||
| 2013 | 2013 | ||||||
| Dee. 31 | To Bad Debts A/c | 500 | Jan. 1 | By Balance b/d | 1,400 | ||
| Dee. 31 | To Balance c/d | 1,000 | Dec. 31 | By Profit & Loss A/c | 100 | ||
| 1,500 | 1,500 | ||||||
| 2014 | |||||||
| Jan. 1 | By Balance b/d | 1,000 |
8.
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| To Depreciation | 700 | By Interest on Drawings | 400 |
| To interest on Capital | 800 |
| Liabilities | Amount(Rs) | Assets | Amount(Rs) |
|---|---|---|---|
| Capital | 50,000 | Interest Accrued | 400 |
| Carriage and Cartage Unpaid | 100 | ||
| Rent received in Advance | 700 | ||
| Outstanding Salaries | 300 |
9.
| Particulars | Amount (Rs) | Particulars | Amount (Rs) | ||
|---|---|---|---|---|---|
| To Bad Debts | 2,000 | By Existing Provision for | |||
| Add: Further bad debts | 1,000 | Bad debts & Doubtful debts | 7,000 | ||
| 3,000 | Less: Provision required for Bad Debt & Doubtful debts | 3,950 | 3,050 | ||
| Less: Provison for discount on debtors A/c | 1,600 | 1,400 | |||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
|---|---|---|---|---|---|
| Sundry Debtors | 80,000 | ||||
| Less : Bad debts | 2,000 | ||||
| Less : Provision for Bad and doubtful debts | 3,950 | ||||
| Less : Provision for discount on sundry Debtors | 1,600 | 7,550 | 72,450 | ||
| Date | Particulars | L.F. | Amount Dr. (Rs) |
Amount CR. (Rs) |
|---|---|---|---|---|
| Bad Debts A/c Dr. | 2,000 | |||
| To Debtors A/c | 2,000 | |||
| (Being Bad Debts written off) | ||||
| Profit & Loss A/c Dr. | 2,000 | |||
| To Bad Debts A/c | 2,000 | |||
| (Being Bad Debts transferred to Profit & Loss Account) | ||||
| Profit & Loss A/c Dr. | 3,950 | |||
| To Provision for Doubtful Debts A/c | 3,950 | |||
| (Being provision made for doubtful debts @ 5% on Sundry debtors) | ||||
| Profit & Loss A/c Dr. | 3,050 | |||
| To Provision for Bad and Doubtful Debts A/c | 3,050 | |||
| (Being an increase in the provision for doubtful debts) |
10.
Dr. Trading and Profit & Loss Account for the year ending on 31st March, 2016 Cr.
| Particulars | Amount (Rs.) | Particulars | Amount(Rs.) | ||
|---|---|---|---|---|---|
| To Opening Stock | 12,000 | By Sales | 86,000 | ||
| To Purchases | 40,000 | Less: Sales Returns | 6,000 | 80,000 | |
| Less: Purchases Returns | 4,000 | 36,000 | By Closing Stock | 16,000 | |
| To Wages | 10,000 | ||||
| Add: Out. Wages | 2,000 | 12,000 | |||
| To Carriage Inward | 700 | ||||
| To Gross Profit c/d | 35,300 | ||||
| 96,000 | 96,000 | ||||
| To Salaries | 2,400 | By Gross Profit bid | 35,300 | ||
| Add: Outstanding Salaries | 1,200 | 3,600 | By Discount Received | 400 | |
| To Rent and Taxes | 1,800 | By Interest | 800 | ||
| Add: Outstanding Rent | 1,000 | 2,800 | |||
| To Dep. on Building | 2,500 | ||||
| To Dep. on Machinery | 2,000 | ||||
| To Insurance | 800 | ||||
| Less: Prepaid Insurance | 200 | 600 | |||
| To Office Expenses | 1,200 | ||||
| To Travelling Expenses | 400 | ||||
| To Commission | 400 | ||||
| To Net Profit | 23,000 | ||||
| 36,500 | 36,500 | ||||
Balance Sheet as at March 31, 2016
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | ||
|---|---|---|---|---|---|
| Outstanding Salary | 1,200 | Closing Stock | 16,000 | ||
| Outstanding Wages | 2,000 | Building | 50,000 | ||
| Outstanding Rent | 1,000 | Less: Depreciation 5% | 2,500 | 47,500 | |
| Creditors | 10,800 | Machinery | 20,000 | ||
| Capital | 62,000 | Less: Depreciation 5% | 2,000 | 18,000 | |
| Add: Net Profit | 23,000 | 85,000 | Prepaid Insurance | 200 | |
| Debtors | 16,000 | ||||
| Cash-in-hand | 2,300 | ||||
| 1,00,000 | 1,00,000 | ||||
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