Prepare Trading and Profit and Loss Account and Balance Sheet from the following Trial Balance and information as on 31st March, 2023 Drawings and Capital ₹ 15,000 ₹ 3,25,000
Prepare Trading and Profit and Loss Account and Balance Sheet from the following Trial Balance and information as on 31st March, 2023:
Adjustments:
(i) Closing Stock was valued at ₹ 1,12,500.
(ii) Commission include ₹ 1,200 being commission received in advance.
(iii) Salaries and wages is outstanding for the month of Feb. & March, 2023.
(iv) Depreciate Plant and Machinery by 15% and Motor Vehicle by 20%.
(v) Write off ₹ 500 as further Bad Debts and maintain provision for doubtful debts at 1% on debtors.
[Ans. Gross Profit ₹ 2,66,750; Net Profit ₹
1,66,805; Balance Sheet Total ₹ 5,37,805.]
Solution:-
| Name of Account | Dr. (₹) | Cr. (₹) |
| Drawings and Capital | 15,000 | 3,25,000 |
| Plant and Machinery | 2,00,000 | |
| Motor Vehicle | 1,50,000 | |
| Return Inward and Outward | 25,000 | 37,000 |
| Stock on 1stApril, 2022 | 82,000 | |
| Purchases and Sales | 4,40,000 | 6,75,000 |
| Carriage Inward | 6,000 | |
| Trade Expenses | 2,500 | |
| Bad Debts | 4,250 | |
| Provision for Doubtful Debts | 6,000 | |
| Commission | – | 4,000 |
| Rent, Rates and Taxes | 12,000 | |
| Salaries and Wages | 24,000 | |
| Debtors and Creditors | 70,000 | 55,000 |
| Fuel and Water | 4,750 | |
| Cash in Hand | 16,500 | |
| Cash at Bank | 50,000 | |
| 11,02,000 | 11,02,000 |
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