Financial Statement using Trial Balance

1. Trial Balance as on 31-12-2016

Amount

Amount

Opening Stock

Debtors

Bank

Sundry Assets

Bad Debts

Accrued Commission

Purchases

Depreciation

Income Tax

Salaries

Wages

Interest on Loan (for six months)

1,00,000

40,000

12,000

1,93,000

1,000

1,500

1,23,500

4,500

10,000

4,600

28,000

1,000

Capital

Creditors

Sales

Discount and Commission

Provision for Doubtful Debts (1-1-2016)

Salaries Outstanding

Loan (1-7-2016)

Suspense Account

1,60,000

35,100

3,02,000

2,800

6,000

2,000

10,000

1,200

5,19,100

5,19,100

Adjustments:

1.Closing Stock amounted to Rs. 20,000

2.Loss by fire was Rs. 25,000 and an insurance claim of Rs. 10,000 was admitted

3.Further bad debts amounted to Rs. 3,000. Maintain 5% provision for doubtful debts

4.Rs. 1,200 paid as rent was debited to landlord's account and included in debtors

5.One dishonored cheque of Rs. 5,000 was not recorded in the books and it was expected that only 2/5 of the amount due would be recovered

6.Included among debtors was Rs. 2,000 due from Mr. A and creditors included Rs. 4,000 due to him

7.Purchase invoices amounting to Rs. 500 were omitted from the books

8.Salaries paid by cheque to an employee Rs. 1,000 was wrongly entered in the bank column of cash book as Rs. 100

9.Difference in trial balance transferred to suspense account was on account of wrong totalling of discount received column on credit side of cash book

Required:

1.Trading and Profit & Loss Account, and

2.Balance Sheet