Following is the Trial Balance of Karman on 31st March, 2025: Capital ₹ 8,00,000 Drawings ₹ 60,000
Following is the Trial Balance of Karman on 31st March, 2025:
Adjustments:
(i) Closing Stock ₹ 2,25,000.
(ii) Machinery of ₹ 45,000 purchased on 1st October, 2024 was shown on Purchases. Freight paid on the Machinery was ₹ 5,000, which is included in Freight on Purchases.
(iii) Commission is payable at 21/2% on Sales.
(iv) Investments were sold at 10% profit, but the proceeds were credited to Sales Account.
(v) Write off further Bad Debts ₹ 10,000 and maintain Provision for Doubtful Debts at 5% of Debtors.
(vi) Depreciate Building by 21/2% p.a. and Machinery and Furniture at 10% p.a.
Prepare Trading and Profit & Loss Account for the year ended 31st March, 2025 and Balance Sheet as at that date.
[Ans.: Gross Profit – ₹ 7,08,000; Net Profit – ₹ 3,81,000; Balance Sheet Total – ₹ 14,37,000.]
| Particulars | Dr. (₹) | Cr. (₹) |
| Capital | — | 8,00,000 |
| Drawings | 60,000 | |
| Opening Stock | 75,000 | |
| Purchases | 15,95,000 | |
| Freight on Purchases | 25,000 | |
| Wages (11 months upto February, 2025) | 66,000 | |
| Sales | — | 23,10,000 |
| Salaries | 1,40,000 | — |
| Postage and Courier | 12,000 | — |
| Printing and Stationery | 18,000 | — |
| Miscellaneous Expenses | 30,000 | — |
| Creditors | — | 3,00,000 |
| Investments | 1,00,000 | — |
| Discount Received | — | 15,000 |
| Debtors | 2,50,000 | — |
| Bad Debts | 15,000 | — |
| Provision For Doubtful Debts | — | 8,000 |
| Building | 3,00,000 | — |
| Machinery | 5,00,000 | — |
| Furniture | 40,000 | — |
| Commission on Sales | 45,000 | — |
| Interest on Investments | — | 12,000 |
| Insurance (upto 31st July 2025) | 24,000 | — |
| Bank Balance | 1,50,000 | — |
| Total | 34,45,000 | 34,45,000 |
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