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Following is the Trial Balance of Indramani as on 31st March, 2023:
Debit Balances Credit Balances
Building Machinery Furniture Goodwill Productive Wages Salaries Freight Inwards Freight Outwards Manufacturing Expenses Insurance General Expenses Debtors Opening Stock Purchases Returns Inward Commission Bad Debts Bank Charges Bank Balance Cash 27,000 16,500 6,300 27,142 31,790 15,040 2,470 2,000 11,000 3,000 6,630 67,360 29,170 95,015 3,128 989 1,300 460 7,145 721 Capital Returns Outward Sales Provision for Doubtful Debts Creditors Bank Loan 60,000 1,100 2,46,700 6,200 30160 10,000
3,54,160 3,54,160
Prepare Trading and Profit & Loss Account for the year ending 31st March, 2023 and Balance Sheet as on that date after making the following adjustments: (i) Value of Closing Stock ₹ 6,100. (ii) Depreciate Machinery @ 10% p.a. (iii) Create Provision for Doubtful Debts at 5% on debtors. (iv) Commission payable to manager at 10% on net profit. (v) On 25th March, 2023, goods costing ₹ 1,500 and furniture costing ₹ 3,000 were destroyed by fire, insurance company has accepted claims of ₹ 1,000 for goods and ₹ 2,000 for furniture. [Gross Profit – ₹ 82,827; Net Profit – ₹ 48,264; Balance Sheet Total – ₹ 1,53,250.]
Anurag Pathak Changed status to publish October 13, 2023