From the following Trial Balance, extracted from the books of Raga Ltd., prepare a Trading and Profit and Loss Account for the year ended 31st March, 2023 and a Balance Sheet as at that date:
From the following Trial Balance, extracted from the books of Raga Ltd., prepare a Trading and Profit and Loss Account for the year ended 31st March, 2023 and a Balance Sheet as at that date:
| Debit balances | ₹ | Credit balances | ₹ |
| Drawings Account | 20,000 | Sales | 2,20,000 |
| Land & Buildings | 12,000 | Capital | 1,01,110 |
| Plant and Machinery | 40,000 | Discount | 1,260 |
| Carriage Inward | 100 | Commission | 5,230 |
| Wages | 500 | Bills Payable | 1,28,870 |
| Salary | 2,000 | Purchase Return | 10,000 |
| Sales Return | 200 | Â | Â |
| Bank Charges | 200 | Â | Â |
| Coal, Gas and Water | 1,200 | Â | Â |
| Purchases | 1,50,000 | Â | Â |
| Trade Expenses | 3,800 | Â | Â |
| Stock (Opening) | 76,800 | Â | Â |
| Cash at Bank | 50,000 | Â | Â |
| Rates and Taxes | 870 | Â | Â |
| Bills Receivable | 24,500 | Â | Â |
| Sundry Debtors | 54,300 | Â | Â |
| Cash in Hand | 30,000 | Â | Â |
| Â | 4,66,470 | Â | 4,66,470 |
The additional informations are as under:
(i) Closing Stock was valued at the end of the year at ₹ 20,000.
(ii) Depreciation on Plant and Machinery charged at 5% and on Land and Building at 10%.
(iii) Make a provision for discount on debtors at 3%.
(iv) Make a provision at 5% on debtors for Bad-debts.
(v) Salary outstanding was ₹ 100 and Wages prepaid were ₹ 40.
(vi) The manager is entitled to a Commission of 5% on Net Profit after charging such Commission.
[Ans. Gross Profit ₹ 21,240; Net Profit ₹ 12,664; Balance Sheet Total ₹ 2,23,377.]
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