Prepare a trading and profit & loss account of M/s Green Club Ltd. for the year and a Balance Sheet as at that date from the following figures taken from their trial balance:
Prepare a trading and profit & loss account of M/s Green Club Ltd. for the year and a Balance Sheet as at that date from the following figures taken from their trial balance:
| Debit Balances | ₹ | Credit Balances | ₹ |
| Opening Stock | 1,25,000 | Sales | 2,50,000 |
| Purchases | 35,000 | Purchase Return | 6,000 |
| Return Inward | 25,000 | Creditors | 55,000 |
| Postage | 600 | Capital | 3,30,000 |
| Salary | 12,300 | Discount Received | 1,000 |
| Wages | 3,000 | Provision for bad debts | 4,500 |
| Rent and rates | 1,000 | Commission received | 5,400 |
| Packing and transport | 500 | Â | Â |
| General Expenses | 400 | Â | Â |
| Insurnace | 4,000 | Â | Â |
| Debtors | 50,000 | Â | Â |
| Cash in hand | 20,000 | Â | Â |
| Closing Stock | 40,000 | Â | Â |
| Machinery | 3,00,000 | Â | Â |
| Lighting | 5,000 | Â | Â |
| Discount | 3,500 | Â | Â |
| Bad Debts | 3,500 | Â | Â |
| Investments | 23,100 | Â | Â |
| Â | 6,51,900 | Â | 6,51,900 |
Adjustments:
(i) Depreciation charged on Machinery @ 10% p.a.
(ii) Further Bad-debts ₹ 1,500, provision for discount on debtors @ 5% and provision for Doubtful Debts on debtors @ 6%
(iii) Wages prepaid ₹ 1,000.
(iv) Interest on investments @ 5% p.a.
[Ans. Gross Profit ₹ 69,000; Net Profit ₹ 13,565; Balance Sheet Total ₹ 3,98,565.]
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