Prepare Trading & Profit & Loss Account and Balance Sheet on that date. Name of Accounts Dr.
Question:
Prepare Trading & Profit & Loss Account and Balance Sheet on that date.
Name of Accounts Dr. Cr.
Rs. Rs.
Prakhar’s Capital A/c 1,00,000 Plant and Machinery 36,000 —
Depreciation on Plant and Machinery 4,000 —
Repairs to Plant 5,200 —
Wages 54,000 —
Salaries 21,000 —
Income tax of Mr. ‘Prakhar’ 1,000 —
Cash in hand and at bank 4,000 —
Land and Building 1,49,000 —
Depreciation on Building 5,000 —
Purchases 2,50,000 —
Purchases return — 3,000 Sales — 4,98,000 Bank Overdraft — 7,600 Accrued Income 3,000 —
Outstanding Salaries — 4,000 Bills Receivable 30,000 —
Provision for Bad Debts — 10,000 Bills Payable — 16,000 Bad Debts 2,000 —
Discount on Purchase — 7,080 Debtors 70,000 —
Creditors — 62,520 Opening Stock 74,000 —
7,08,200 7,08,200
(i) Stock on 31st March, 2007 was Rs. 60,000.
(ii) Write off further Rs. 6,000 for Bad Debts and maintain a provision for Bad Debts at 5%
on Debtors.
(iii) Goods costing Rs. 10,000 were sent to customer for Rs. 12,000 on 30th March, 2007 on
‘sale or return basis’. This was recorded as actual sales.
(iv) Rs. 2,400 paid as rent of the office was debited to Landlord account and was included in the list of debtors.
(v) General Manager is to be given commission at 10% of net profit after changing the commission of works manager and his own.
(vi) Work Manager is to be given commission at 12% of net profit before charging the commission of General manager and his own.
Step by Step Answer:
Zero To Mastery In Accounting Become A High Level Accounting Manager
ISBN: 9789392475177
1st Edition
Authors: HECTOR ROBINETT