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Following balances are taken from the books of Niranjan. Prepare Trading and Profit & Loss Account for the year ended 31st March, 2023 and Balance Sheet as on that date:

Particulars Particulars

Capital

Opening Stock

Furniture

Sales

Purchases Return

Rent

Salaries

Bad Debts

Sundry Debtors

Advertisement Expenses

Patents

12,00,000

4,50,000

15,000

43,50,000

40,000

50,000

2,40,000

10,000

4,00,000

60,000

48,000

Drawings

Plant and Machinery

Purchases

Insurances

Sales Return

Trade Expenses

Wages

6% Investments

Sundry Creditors

Cash

Miscellaneous Income

2,10,000

2,40,000

29,50,000

15,000

70,000

20,000

4,00,000

5,00,000

1,98,000

1,22,000

12,000

Adjustments:

(i) Closing Stock ₹ 7,50,000.

(ii) Depreciate Machinery by 10% and Furniture by 20%.

(iii) Wages ₹ 50,000 and salaries ₹ 20,000 are outstanding.

(iv) Write off ₹ 50,000 as further Bad Debts and create 5% Provision for Doubtful Debts. Also, create Provision for Discount on Debtors @ 2%.

(v) Investments were made on 1st July, 2022 and no interest has been received so far.

[Gross Profit – ₹ 12,20,000; Net Profit – ₹ 7,38,350; Balance Sheet Total – ₹ 19,96,350.]

Anurag Pathak Changed status to publish October 13, 2023
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