Dare Devil & Co is a small scale manufacturing unit. It procures semifinished goods and sells them
Question:
Dare Devil & Co is a small scale manufacturing unit. It procures semifinished goods and sells them after further processing. The trial balance and additional information as on 31st March 2017 are given below. You are required to prepare the Profit and loss A/c for the year and the Balance Sheet as on that date
Trial Balance of Dare Devil & Co as on 31st March 2017
Additional Information
1. Commission accrued to be received: ₹ 24,500
2. Insurance expenses include premium paid amounting to ₹ 15,000 on a machine covering the period from 1st October 2016 to 30th September 2017.
3. Loan from the bank attracts interest @ 10%.
4. Write off ₹ 15,000 as bad debts and make a provision for doubtful debts @ 3%.
5. The stock in hand at the end of the year is valued at ₹ 1,387,250.
6. Depreciate machinery @ 15% and computer @ 25%.
7. Expenses outstanding at the yearend amounted to ₹ 32,150.
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