From the following Trial Balance of Ramesh, prepare Trading and Profit & Loss Account for the year ending 31st March, 2023 and Balance Sheet as on that date:
From the following Trial Balance of Ramesh, prepare Trading and Profit & Loss Account for the year ending 31st March, 2023 and Balance Sheet as on that date:
| Heads of Accounts | L.F. | Dr. (₹) | Cr. (₹) |
|
Drawings Capital Plant and Machinery Debtors Creditors Returns Inward Returns Outward Discount Allowed Discount Received Commission Interest on Bank Loan Furniture Provision for Doubtful Debts Wages Salaries Advertisement Rent and Taxes Purchases Sales Stock on 1st April, 2022 Carriage Land and Building Cash in Hand Cash at Bank 10% Bank Loan (Taken on 1st April, 2022) Input CGST Input SGST Output IGST |
 |
15,000 – 2,05,000 50,000 – 8,000 – 7,000 – 15,000 12,000 55,000 – 50,000 45,000 15,000 13,000 2,60,000 – 70,000 5,000 98,000 8,000 20,000 – 9,000 9,000 – |
– 3,50,000 – – 28,000 – 7000 – 6000 – – – 13,000 – – – – – 4,00,000 – – – – – 1,50,000 – – 15,000 |
| Total | Â | 9,69,000 | 9,69,000 |
Adjustments:
(i) Cost of Stock on 31st March, 2023 was ₹ 37,000 and its market value was ₹ 35,000.
(ii) Wages outstanding were ₹ 6,000 and salaries outstanding were ₹ 5,000 on 31st march, 2023.
(iii) Depreciate Land and Building @ 2 and a 1/2%, Plant and Machinery @ 10% p.a. and Furniture @ 15% p.a.
(iv) Purchase includes purchase of machinery for ₹ 10,000 on 1st October, 2022.
(v) Debtors include bad debts of ₹ 2,000. Maintain a provision for doubtful debts @ 10% on Debtors.
(vi) Manager is entitled to get 10% commission on profit before charging such commission.
[Gross Profit – ₹ 53,000; Net Loss – ₹ 81,500; Balance Sheet Total – ₹ 4,45,500.]
[Hint: As there is Net Loss, no commission will be given to the manager.]
