From the following Trial Balance and information, prepare Trading and Profit & Loss Account of Gurman for the year ended 31st March, 2023 and Balance Sheet as on that date:
From the following Trial Balance and information, prepare Trading and Profit & Loss Account of Gurman for the year ended 31st March, 2023 and Balance Sheet as on that date:
| Heads of Accounts | L.F. | Dr. (₹) | Cr. (₹) |
|
Capital Drawings Land and Building Plant and Machinery Furniture Sales Returns Outward Debtors Loan from Gajanand (Taken on 1st July, 2022, @ 6% p.a.) Purchases Returns Inward Carriage Inwards Sundry Expenses Printing and Stationery Insurance Expenses Provision for Doubtful Debts Provision for Discount on Debtors Bad Debts Opening Stock Salaries and Wages Carriage Outwards Creditors Trade Expenses Cash at Bank Cash in Hand |
 |
12,000 90,000 20,000 5,000 – – 18,400 – 80,000 5,000 10,000 600 500 1000 – – 400 21,300 15,500 3,000 – 800 4,600 1,280 |
1,00,000 – – – – 1,40,000 6,000 – 30,000 – – – – – – 1,000 380 – – – – 12,000 – – – |
| Total | Â | 2,89,380 | 2,89,380 |
Additional Information:
(i) Value of Closing Stock on 31st March, 2023 at cost was ₹ 27,300 and its net realisable value (market value) was ₹ 30,000.
(ii) Fire occurred on 23rd March, 2023 and goods costing ₹ 10,000 were destroyed. Insurance company accepted claim of ₹ 6,000 only and paid the claim money on 10th April, 2023.
(iii) Bad Debts amounting to ₹ 400 are to be written off. Provision for Doubtful Debts is to be maintained at 5% and Provision for Discount on Debtors at 2%.
(iv) Received goods costing ₹ 6,000 on 27th March, 2023 but the purchases was not recorded.
(v) Rishabh took goods of ₹ 2,000 for his personal use but was not recorded.
(vi) Charge depreciation @ 2% on Land and Building, @ 20% on Plant and Machinery and @ 5% on Furniture.
[Gross Profit – ₹ 63,000; Net Profit – ₹ 29,538; Balance Sheet Total – ₹ 1,64,888.]
