Following is the trial balance of Amar as on 31st March, 2011:

Amount Amount

Capital Account 80,000

Drawing Account 6,000

Stock (1.4.2010) 45,000

Purchases 2,60,000

Sales 3,10,000

Furniture 10,000

Sundry Debtors 40,000

Freight and Octroi 4,600

Trade Expenses 500

Salaries 5,500

Rent 2,400

Advertising Expenses 5,000

Insurance Premium 400

Commission 1,300

Discount 200

Bad Debts 1,600

Provision for Bad Debts 900

Creditors 20,000

Cash in hand 5,200

Bank 5,800

Goodwill (at cost) 20,000

4,12,200 4,12,200

Adjustments:

(a) Stock on 31st March, 2011 was valued at Rs. 53,000.

(b) Salaries have been paid only for 11 months.

(c) Unexpired insurance included in the figure of Rs 400 appearing in trial balance is Rs 100.

(d) Commission earned but not yet received amounting to Rs 122 is to be recorded in books of account.

(e) Provision for bad debts is to be brought upto 3% of sundry debtors.

(f) Manager is to be allowed a commission of 10% of net profits after charging such commission.

(g) Furniture is depreciated @10% per year.

(h) Only 1/4th of advertising expenses is to be written off.

Prepare trading and profit and loss account for the year ended 31st March, 2011 and balance sheet as on that date. Transferred

Question 1: How much gross profit will be transferred to Profit & Loss Account?

( )"60,000

( )"55,500

( )"53,000

( )"53,400

Question 2: Freight & Octroi expence will be debit (Dr.) to Account.

( )None

( )Both (a & b)

( )P&L account

( )Trading A/c

Question 3: Amount of outstanding is ..

( )600

( )500

( )700

( )1000

Question 4: How much amount of advertising expenses is to be written off in 2011

( )3000

( )1500

( )1300

( )1250

Question 5: How much Insurance Permium expence will be debit (Dr.) to P&L account?

( )300

( )250

( )400

( )500

Question 6: How much Bad Debts will be debit (Dr.) to P&L account.

( )2800

( )3700

( )1900

( )2000

Question 7: Net Profit of ABC Ltd. For the year ended 31st March 2011 is .

( )37520

( )36520

( )35000

( )37000

Question 8: Total Liabilities of ABC ltd. As on 31st March 2011 is ..

( )"1,35,722

( )"1,30,500

( )"1,40,533

( )"1,35,000

Question 9: Debtors amount after provision for bad debts is

( )"38,500

( )"38,200

( )"38,800

( )"38,900

Question 10: Value of Furniture after depreciation is

( )10000

( )9000

( )11000

( )10500