Plant and Machi Furniture 32,000 Advertisement 16,000 Office Rent(Paid for 10 months) 20,000 Buildings 48,000 Cash in hand 6,000 Bill Receivable 48,000 11,12,000 11,12,000 Adjustments: 1) Closing stock was valued at market price of at Rs. 1,76,000 which is 10% above the cost. 2) Depreciate Plant and Machinery and Building at 20% and 10% respectively. 3) Goods withdrawn by Dhanesh of Rs. 20,000 during the year were not recorded in the books of accounts. 4) Bad debts were Rs. 4,000 and provide for R.D.D. at 5% on Sundry Debtors. 5) Goods worth Rs. 12,000 were purchased and included in closing stock, but not recorded in the books of accounts. 6) Dishonoured Bill Payable of 8,000 was wrongly included in Bills Receivable, however balances of Debtors and 17 Creditors were taken correctly. Section II : From the Textbook - Practical Problems :- 1. From the following Trial Balance of M/s. Ajay and Vijay, you are required to prepared Trading and Profit and Loss Account for the year ended 31st March, 2009 and Balance Sheet as on that date. Trial Balance as on 31st March, 2009 Particulars Debit Amt. (Rs.) Credit Amt. (Rs.) Capital A/c's. Ajay 60,000 Vijay 35,000 Purchases and Sales 46,700 85,000 Sundry Debtors and creditors 28,000 25,000 Bills Receivable and payable 5,000 6,000 Commission 4,600 1,800 Opening stock 18,000 Wages 9,900 Investment 13,500 Postage and Telegrams 3,600 Insurance 1,200 Particulars Credit Amt. (Rs.) Plant and Machinery Furniture Cash in hand Carriage Bad debts Prepaid Rent Salaries Debit Amt. (Rs.) 40,700 18,000 2.500 3,200 400 7,000 10,500 2,12,800 2,12,800 Adjustments: 1) The closing stock is valued at Rs. 31,000. 2) Outstanding expenses were wages Rs. 1,400, salaries Rs. 800 3) Depreciate Plant and Machinery by 10% 4) Insurance at Rs. 500 is paid in advance. 5) Provide for further bad debts of Rs. 1,500. 6) Commission due but not received Rs. 1,200