From the following information prepare financial Statements of M/s Raj & Bros for the year ending March 31, 2020
From the following information prepare financial Statements of M/s Raj & Bros for the year ending March 31, 2020.
Additional Information:
(i) Depreication on Plant and Machinery @ 10% p.a., a Machine has been purchased on July 01, 2019 for ₹ 12,000.
(ii) The manager is entitled to a commission of 10% of the net profit before charging such commission.
(iii) Closing stock in trade is valued at ₹ 6,000 (Cost); ₹ 6,200 (Realisable Value).
(iv) Rent Outstanding ₹ 5,000.
[Ans. Gross Profit ₹ 44,300; Net Profit ₹ 1,620; Balance Sheet Total ₹ 1,04,400.]
Solution:-
| Dr. Bal (₹) | Cr. Bal (₹) | ||
| Stock (1-4-2019) | 16,800 | Capital | 78,000 |
| Sales Returns | 8,000 | Sales | 3,09,000 |
| Purchases | 2,43,000 | Returns Outward | 5,700 |
| Freight-in | 8,600 | Trade Creditors | 4,800 |
| Rent and Taxes | 5,700 | 10% Bank Loan (1-7-2019) | 24,000 |
| Salaries | 9,300 | Income from Investment | 3,600 |
| Trade Debtors | 24,000 | Discount Received | 2,250 |
| Bank Interest | 1,000 | ||
| Printing and Advertising | 14,600 | ||
| Cash at Bank | 18,300 | ||
| Discount Allowed | 1,340 | ||
| Investment | 25,000 | ||
| Furniture | 3,800 | ||
| General Expenses | 3,610 | ||
| Audit Fees | 500 | ||
| Insuarnce | 800 | ||
| Travelling Expenses | 3,000 | ||
| Plant & Machinery | 30,000 | ||
| Drawings | 10,000 | ||
| 4,27,350 | 4,27,350 |
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Solution:-
Note:-
The interest on a bank loan of ₹24,000 at 10% per annum for 9 months amounts to ₹1,800. The Trial Balance, however, shows that only ₹1,000 has been paid. Therefore, the remaining ₹800 represents
Outstanding interest
Loan amount = ₹24,000
Interest @ 10% p.a. for 9 months = ₹1,800
Interest paid = ₹1,000
Interest outstanding = ₹800
Note:-
The interest on a bank loan of ₹24,000 at 10% per annum for 9 months amounts to ₹1,800. The Trial Balance, however, shows that only ₹1,000 has been paid. Therefore, the remaining ₹800 represents
Outstanding interest
Loan amount = ₹24,000
Interest @ 10% p.a. for 9 months = ₹1,800
Interest paid = ₹1,000
Interest outstanding = ₹800
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