ASAP!!!
4. Following are the extracts from the Trial Balance of PRITHVI & AAKASH as at 31st March, 2021: Particulars Particulars Purchases 11,40,000 Sales 15,55,000 (purchased on 2,00,000 Capital 12% Investments 01.07.2020) 15,96 200 Doubtful Debts Bad Debts (after recovery of bad debts of 5,000 w/o during 2019-2020] 20,000 1,000 Provision for (01.04.2020) Trade Debtors 3,600 5,87,000 Provision for Discount on Debtors (01.04.2020) 9,76,400 Outstanding Liabilities for Expenses (Dr) Plant and Machinery (before rectfication) 1.10,000 Discount Allowed 4,000 Income Tax paid 20,000 Additional Information: 1. Stock in hand was not taken on 31st March but only on 7th April. Following transactions had taken place during the period from 1st April to 7th April Sales 5,00,000, Purchases 3,00,000. Stock on 7th April, was 3,60,000. Goods are normally sold at 25% profit on cost. Market Price on 31st March, 2021 was 64% of Selling Price Estimated Realisable Expenses 5%. 2. Goods (Sale Price 50,000) were taken by the proprietor for his personal use but not recorded. Goods (Sale Price 75.000) were given away as free samples to Mahesh,a customer recorded in the sales book. On 31st March Goods (Sale Price 25,000) were destroyed by fire it was fully insured but the insurance company admitted the claim to the extent of 60% of cost ony and paid the claim money on 10th April, 2021. On 31st March, Goods for ' 1,00,000 were sent to a customer on 'Sale or Return' basis and recorded as actual sales. Goods are normally sold at 25% profit on cost. On 1st Jan. 2021 Investments were sold at 10% profit, but the entire sales proceeds have been taken as Sales. 3. Write off further 8,000 as bad. Additional discount of 2,000 given to debtors. Maintain Provision for Discount on Debtors@ 2%. Maintain a Provision for Doubtful Debts @ 10%. Included amongst the Debtors is 6.000 due from Z and included among the Creditors 2,000 due to him. 3. It was discovered during 2020-2021 that 50,000 being repairs to Machinery incurred on 1st July, 2018 had been capitalized and 90,000 being the cost of Machinery purchased on 1st Oct, 2017 had been written off to Stores and Wages 10,000 paid for its Installation had been debited to Wages Account. A Machine costing 3,80,000 was purchased on 1st July 2020. Wages 20,000 paid for its Installation have been debited to Wages Account. Rate of depreciation on Plant & Machinery is 20% p.a. on reducing balances basis. 4. Printing and Stationery expenses of 1,10,000 relating to previous year had not been provided in that year but was paid in current year by debiting Outstanding Liabilities for Expenses. Answer the following: (a) Calculate the amount of Net Purchases to be shown in the Trading Account [2 Marks) (b) Calculate the amount of Net Sales to be shown in the Trading Account. [2 marks]
