The following balances were taken from the books of Shri R. Lal as at 31st March, 2023 Capital ₹ 1,00,000 Drawing ₹ 17,600
The following balances were taken from the books of Shri R. Lal as at 31st March, 2023:
Prepare Trading and Profit & Loss A/c and a Balance Sheet as at 31st March, 2023, after keeping in view the following adjustments:
(i) Depreciate old Building at 21/2% and addition to Building at 2% and Office Furniture at 5%.
(ii) Write off further Bad-debts ₹ 570.
(iii) Increase the Bad-debts Provision to 6% of Debtors.
(iv) On 31st March, 2023 ₹ 570 are outstanding for salary.
(v) Rent receivable ₹ 200 on 31st March, 2023.
(vi) Interest on capital at 5% to be charged.
(vii) unexpired Insurance ₹ 240.
(viii) Stock was valued at ₹ 14,290 on 31st March, 2023.
[Ans. Gross Profit ₹ 53,190; Net Profit ₹ 16,060; Balance Sheet Total ₹ 1,22,950.]
Solution:-
| Particulars | ₹ | Particulars | ₹ |
| Capital | 1,00,000 | Rent (Cr.) | 2,100 |
| Drawing | 17,600 | Railway Freight on sales | 16,940 |
| Purchases | 80,000 | Carriage Inwards | 2,310 |
| Sales | 1,40,370 | Office Expenses | 1,340 |
| Purchase Returns | 2,820 | Printing & Stationery | 660 |
| Stock on 1.4.2022 | 11,460 | Postage | 820 |
| Bad Debts | 1,400 | Sundry Debtors | 62,070 |
| Bad Debts Provision on 1.4.2022 | 3,240 | Sundry Creditors | 18,920 |
| Rates & Insurance | 1,300 | Cash at Bank | 12,400 |
| Discount (Cr.) | 190 | Cash in Hand | 2,210 |
| Bills Receivable | 1,240 | Office Furniture | 3,500 |
| Sales Returns | 4,240 | Salaries & Comission | 9,870 |
| Wages | 6,280 | Addition to Building | 7,000 |
| Building | 25,000 |
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