Illustrations 5.

Mr. Arvindkumar had a small business enterprise. He has given the trial balance as at 31st March 2013

Particulars

Debit (

`

)

Credit (

`

)

Mr. Arvinkumar's Capital

1,00,000

Machinery

36,000

Depreciation on machinery

4,000

Repairs to machinery

5,200

Wages

54,000

Salaries

21,000

Income tax of Mr. Arvindkumar

1,000

Cash in had

4,000

Land & Building

1,49,000

Depreciation on building

5,000

Purchases

2,50,000

Purchase returns

3,000

Sales

4,98,000

Citi Bank

7,600

Accrued Income

3,000

Salaries outstanding

4,000

Bills receivables

30,000

Provision for doubtful debts

10,000

Bills payable

16,000

Bad debts

2,000

Discount on purchases

7,080

Debtors

70,000

Creditors

62,520

Opening stock

74,000

Total

7,08,200

7,08,200

Additional information:

(1)

Stock as on 31st March 2013 was valued at

`

60,000

(2)

Write off further

`

6,000 as bad debt and maintain a provision of 5% on doubtful debt.

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