Prepare Trading and Profit & Loss Account for the year ended 31st March, 2023 and Balance Sheet as at that date from the following Trial Balance
Prepare Trading and Profit & Loss Account for the year ended 31st March, 2023 and Balance Sheet as at that date from the following Trial Balance:-
Adjustments:-
1. Salaries ₹ 1,000 and taxes ₹ 2,000 are outstanding but insurance ₹ 500 is prepaid.
2. Commission ₹ 1,000 is received in advance for next year.
3. Interest ₹ 2,100 is to be received on Deposits and Interest on Bank Overdraft ₹ 3,000 is to be paid.
4. Bad-debts provision is to be maintained at ₹ 10,000 on Debtors.
5. Depreciate Furniture by 10%.
6. Stock on 31st March, 2023 was valued at ₹ 45,000.
[Ans. G.P. ₹ 55,000; N.P. ₹ 20,000, and
| Particulars | Dr. (₹) | Cr. (₹) |
| Capital | 1,00,000 | |
| Cash | 15,000 | |
| Bank Overdraft | 20,000 | |
| Purchases and Sales | 1,20,000 | 1,50,000 |
| Returns | 10,000 | 20,000 |
| Establishment Expenses | 22,000 | |
| Taxes and Insurance | 5,000 | |
| Bad-debts and Bad-debt Provision | 5,000 | 7,000 |
| Debtors and Creditors | 50,000 | 20,000 |
| Commission | 5,000 | |
| Deposits | 40,000 | |
| Opening Stock | 30,000 | |
| Drawings | 14,000 | |
| Furniture | 6,000 | |
| B/R and B/P | 30,000 | 25,000 |
| 3,47,000 | 3,47,000 |
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