14, On 31lst March, 2023the following Trial Balance was prepared from the books of
Debit Balances
Furniture
Credit Balances
3,400 Capital
Manpre t:.
Building 21,700 Discount received 1,00,000
Drawings 4,200 Bank Loan 2000
Cash at Bank 2,470 Purchases Return 10,000
Wages 31,250 Sales 970
Discount Allowed 2,640| Sundry Creditorsl ee 191,940
Bank Charges 90 Provision for Doubtful Debts 12,450
Salaries 5,610
800
Purchases 1,32,700
Opening Stock 40,200
Cash in Hand 2,650
Sales Return 1,250
Carriage Inwards 3,400
Machinery 14,600
Sundry Debtors 43,800
Bad Debts 1,000
Insurance 1,250
Rent 2,450
Advertisement 3,500
3,18,160
3,18,160
Prepare Trading and Profit &Loss Account for the year ended 31st March, 2023 and also
the Balance Sheet as at that date after making the following adjustments:
() Closing Stock at cost was 35,000 whereas its net realisable value (market value)
was?30,000.
() Anew machine was purchased for 3,000 on lst April, 2022 but it was not paid for
and no entry was passed in the books.
(ii) Wages include 500 paid for the installation of machinery.
(iv) Provision for Doubtful Debts was raised to ? 1,400 and further bad debts of ? 300 were
written off.
(v) Fire broke out on 20th March, 2023 and destroyed stock to the value of 8,000. The
insurance company admitted claim for loss of stock of 5,000 and the amount was paid
on 15th April, 2023.
(vi) Outstanding wages were 700 while outstanding salaries were 500.
(vii) Prepaid insurancewas 250 and prepaid advertisement 500.
(vii) Machinery was depreciated by 10% and furniture by 15%.
[Gross Profit 21,910; Net ProfitR1400; Balance Sheet Total-* 1,28, 390)
Afustnn
Fromthe following Trial Balance and information, prepare Trading and Profit & Loss Account
15. Gurman date:
of for the year ended 31st March, 2023 and Balance Sheet as on that
Headsof Accounts L.F. Dr. ) Cr. )
Capital
1,00,000
Drawings 12,000
LandandBuilding 90,000
PlantandMachinery 20,000
Furniture 5,000
Sales
1,40,000
ReturnsOutward 6,000
Debtors 18,400
Loannfrom Gajanand (Taken on 1st July, 2022 @
6% p.a.) 30,000
Purchases 80,000
Returns Inward
5,000
Carriage Inwards 10,000
Sundry Expenses 600
Printing and Stationery 500
Insurance Expenses be1,000
Provision for Doubtful Debts
1,000
Provision for Discount on Debtors 380
Bad Debts 400
Opening Stock 21,300
Salaries and Wages 15,500
Carriage Outwards
3,000
Creditors
12,000
Trade Expenses 800
Cash at Bank
4,600
Cash in Hand t 1,280
Total
2,89,380 2,89,38O
Additional Information:
(i) Value of Closing Stock on 31st March, 2023 at cost was?
27,300 and its net realisable
value (market value) was 30,000.
(ii) Fire occurred on 23rd March, 2023 and goods
costing ? 10,000 were
Insurance company accepted claim of 6,000 only and paid the claim destroved. mone on
10th April, 2023.
(iüi) Bad Debts amounting to 400 are to be written off.
Provision for Doubtful Debts is to
be maintained at 5% and Provision for Discount on Debtors at 2%.
(iv) Received goods costing ?6,000on 27th March, 2023 but the
purchases was not recorded.
(U) Gurman took goods of 2,000 for his personal use but was not recorded
(vi) Charge depreciation @2% on Land and Building, @20% on
Plant and Machinery and
@ 5% on Furniture.
[Gross Profit 63,000; Net Profit* 29,538; Balance Sheet Total-IB4 8991
