Illustration 14 From the following Trial Balance of Mr. Ajray, prepare Trading and Profit and Loss account for the year ended 31st March 2011 and a Balance Sheet as on that date. Particulars Capital Drawings ab Stock on 1st April 2010 Return inwards Carriage inwards Deposit with Canara Bank Carriage outwards Loan to Anil 5% given on 1-4-2010 Return outwards Interest on loan to Anil Rent Rent outstanding Purchases Debtors Goodwill Creditors Advertisement Provision for doubtful debts Bad debts Patents and trade marks Cash in hand Sales Discount allowed Wages Plant and machinery Adjustments: 1. Write off further bad debts by 6,000 Make provision for doubtful debts 10% on debtors 2. The value of closing stock is 1,87,920 3. Provide depreciation on machinery at 10% p.a. 4. Advertisement expenses paid in advance 1,200. Debit 32,500 1,74,450 5,540 12,400 13,750 7,250 10,000 8,200 11,29,700 40,000 17,300 9,540 4,000 5,000 620 3,300 7,540 30,000 15,11,090 Credit 1,80,000 8,400 250 1,300 30,000 12,000 12,79,140 15,11,090

Illustration 14 From the following Trial Balance of Mr. Niray, prepare Trading and Profit and Loss account for the year ended 31 st March 2011 and a Balanee Shime inwan ihat date. Adjustments: 1. Write off further bad debts by 6,000 Make provision for doubtful debts 10% on debtors 2. The value of closing stock is 1,87,920 3. Provide depreciation on machinery at 10% p.a. 4. Advertisement expenses paid in advance 1,200