On 31st March, 2023 the following Trial Balance of Sh. Ajay Oswal was taken out. Prepare Trading and Profit & Loss Account for the year and Balance Sheet at that date after making the following adjustments:-
On 31st March, 2023 the following Trial Balance of Sh. Ajay Oswal was taken out. Prepare Trading and Profit & Loss Account for the year and Balance Sheet at that date after making the following adjustments:-
(i) Stock on 31st March, 2023 was valued ₹ 26,000.
(ii) General Manager is entitled to a Commission of 5% on Net Profits after charging such Commission.
(iii) ₹ 2,000 paid for Salary & Wages have been included in Sundry Debtors.
(iv) Increase Bad-debts by ₹ 800 and create provision for Doubtful Debts at 10%.
(v) General Expenses include insurance premium paid up to 30th June, 2023 @ ₹ 3,000 per annum.
(vi) ₹ 600 out of the Advertisement Expenses are to be carried forward to the next year.
(vii) Charge one-fourth of ‘Salaries and Wages’ to Trading A/c.
(viii) Accrued Income ₹ 2,500.
|  | Dr. (₹) | Cr. (₹) |
| Capital | Â | 3,00,000 |
| Income Tax | 8,000 | Â |
| Stock on 1-4-2022 | 16,000 | Â |
| Return Inwards | 5,600 | Â |
| Carriage Inwards | 8,200 | Â |
| Deposit with PNB | 15,000 | Â |
| Return Outwards | Â | 4,100 |
| Carriage Outwards | 3,700 | Â |
| Loan to Mar. Malik @ 18% p.a. given on 1-7-2022 | 10,000 | Â |
| Interest on the above | Â | 900 |
| Rent | 13,000 | Â |
| Outstanding Rent | Â | 1,000 |
| Purchases | 1,48,000 | Â |
| Debtors | 75,800 | Â |
| Goodwill | 25,000 | Â |
| Land and Buildings | 2,00,000 | Â |
| Furniture | 15,000 | Â |
| Salaries and Wages | 38,000 | Â |
| Creditors | Â | 26,200 |
| Advertisement Expenses | 3,000 | Â |
| Provision for Doubtful Debts | Â | 3,500 |
| Bad-Debts | 2,000 | Â |
| Patents and Patterns | 6,000 | Â |
| Cash in Hand | 8,900 | Â |
| Sales | Â | 2,70,000 |
| General Expenses | 4,500 | Â |
| Â | 6,05,700 | 6,05,700 |
[Ans. G.P ₹ 1,12,300; N.P. ₹ 54,000; B/s Total ₹ 3,75,900.]
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