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kindly hep me the answer for the following question Q1. From the following Trial Balance prepare Trading and Profit and Loss Account for the year
kindly hep me the answer for the following question
Q1. From the following Trial Balance prepare Trading and Profit and Loss Account for the year ended 31" December, 2020 and Balance Sheet as on that date: Dr. (Rs.) Cr. (Rs.) Drawings 10,000 Stock on 01/01/2019 46.000 Purchases and Purchases Returns 1,50,200 600 Cash in Hand 3,400 Bank Balance 22.660 Freehold Premises 38.600 Trade Expenses 840 Printing, stationery and Advertising 1.640 Professional Charges 280 Commission Received 3.300 Investments as on 15 Jan. @ 10% 4.000 Interest on above 200 Sundry Debtors and Creditors 36,000 29,000 25.000 Salaries 14.000 Capital 1.14,000 Income Tax 1.600 Discount allowed and received 6,300 4,600 Sales Returns and Sales 350 2.08.950 Bills Receivable Bills Payable 3,200 10,000 Office furniture 3,050 Rent, Rates and Insurance 4,000 Bad Debts Provisions 670 Total 3,71,320 3.71,320 Adjustments: (a) Provide for wages Rs. 5,000. (b) Write Off 5% depreciation on freehold premises and 10% on office furniture. Wages (C) Insurance to the extent of Rs. 200 relates to 2021. (d) Stock on 31.12.2020 is Rs. 5.20,00 (e) Charge interest on capital 5% and on drawings Rs. 300. Further bad debts are Rs. 1,000. (2) Provide for doubtful debts @5% on sundry debtors. (h) Make provisions for discount on debtors and reserve for discount on creditors @2% Step by Step Solution
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