Cash in hand 86,000 Motor 60.000 20.000 I can from Viswanath Illustration 20 The following is the schedule of balances as on 31.3.2017 extracted from the books of Shri Gavaskar, who carries on business under the same name and style of Messrs Gavaskar & Co., at Bombay: Particulars Dr. ) Cr.) 1,400 Cash at bank 2,600 Sundry Debtors Stock on 1.4.2016 62,000 Furniture & fixtures 21,400 Office equipment 16,000 Buildings car Guide Sundry creditors 43,000 Loan 30,000 inn for bad debts 3,000 Purchases 1,40,000 Purchase Returns 2.600 Coles Sales 2,30,000 Calen Sales Returns 4,200 Salaries 11,000 Det Rent for godown 5.500 Interest on loan from Viswanath 2,700 Rates & 2,100 Discount allowed to Debtors 2200 2.400 Dieren Discount received from creditors 1,600 Erol Freight on purchases 1,200 Carriage outwards 2,000 Drawings 12,000 Printing and Stationery 1,800 2.200 Sed 5,500 General office expenses 3,000 Bad debts 2,000 Bank charges 1,600 Motor car expenses 3.600 Capital Alc 1,62000 TOTAL 4,72,200 4,72,200 Prepare Trading and Profit and Loss Account for the year ended 31st March, 2017 and the Balance Sheet as at that date after making provision for the following: 1. Depreciate : (a) Building used for business by 5 percent; (b) Furniture and fixtures by 10 percent: One steel table purchased during the year for 1,400 was sold for same price but the sale proceeds were wrongly credited to Rates & taxes Electricity charges Insurance premium 963 2. 3 4. 5. 6. 7 Sales Account; (c) Office equipment by 15 percent; Purchase of a typewriter during the year for 4,000 has been wrongly debited to purchase; and (d) Motor car by 20 percent. Stock consists of 11,000 units of goods purchased @ 4 per unit, but unit price has fallen to 3.25. This price reduction is anticipated to be permanent. The firm has already decided that if the price reduction lasts longer than two months it will reduce sale price of the item from 2 6.50 to 3 5.75. One month's rent for godown is outstanding, One month's is outstanding ton loan from Viswanath is payable at 12 percent per annum, this loan was taken on 1.5.2016, Provision for bad debts is to be maintained at 5 per cent of Sundry Debtors. Insurance premium includes 34,000 paid towards proprietor's life insurance policy and the balance of the insurance charges cover the period from 1.4.2016 to 30.6.2017. Half of the buildings are used for residential purposes of Shri Gavaskar. A debit balance of: 420 existed in the creditors ledger at the end of March 2017. representing advance to supplier, the suppliers concerned cannot be traced and it has been decided to write-off the balance. The actual cash balance in office cash box is 1,300. 8. 9. 10