From the following trail balance extracted from the books of MMN, prep

1.	From the following trail balance extracted from the books of MMN, prepare the trading and profit and loss account for the year ended 31st December, 2016. Name of AccountsDebit (Rs.)Credit (Rs.)Capital90,000Drawings6,480Land and Building25,000Plant and Machinery14,270Furniture and Fixtures 1,250Carriage Inwards 4,370Wages21,470Salaries 4,670Provision for Bad Debts 2,470Sales91,230Sales Return 1,760Bank Charges 140Coal, Gas and Water 720Rates and Taxes 840Discount 120Purchases42,160Purchase Return 8,460Bills Receivable 1,270Trade Expenses 1,990Sundry Debtors37,800Sundry Creditors12,170Stock(1st January, 2016)26,420Apprentice Premium 500Fire Insurance 490Cash at Bank13,000Cash in Hand 850Total¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,04,950––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,04,950–––––––––––––––––––– Additional Adjustments: Charge depreciation on land and building at 212 %, on plant and machinery account at 10% and on furniture and fixtures at 10%. Make a provision of 5% on debtors for doubtful debts. Carry forward the following unexpired amounts. (i) Fire insurance Rs. 125. (ii) Rates and taxes Rs. 240 (iii) Apprentice premium Rs. 400. (iv) Closing stock Rs. 29,390
Answer» From the following trail balance extracted from the books of MMN, prepare the trading and profit and loss account for the year ended 31st December, 2016. $\begin{matrix} Name of Accounts & Debit (Rs.) & Credit (Rs.) Capital & 90, 000 Drawings & 6, 480 Land and Building & 25, 000 Plant and Machinery & 14, 270 Furniture and Fixtures & 1, 250 Carriage Inwards & 4, 370 Wages & 21, 470 Salaries & 4, 670 Provision for Bad Debts & 2, 470 Sales & 91, 230 Sales Return & 1, 760 Bank Charges & 140 Coal, Gas and Water & 720 Rates and Taxes & 840 Discount & 120 Purchases & 42, 160 Purchase Return & 8, 460 Bills Receivable & 1, 270 Trade Expenses & 1, 990 Sundry Debtors & 37, 800 Sundry Creditors & 12, 170 Stock(1st January, 2016) & 26, 420 Apprentice Premium & 500 Fire Insurance & 490 Cash at Bank & 13, 000 Cash in Hand & 850 Total & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 2, 04, 950 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 2, 04, 950 - -------- - - -------- - \end{matrix}$ Additional Adjustments: Charge depreciation on land and building at $2 \frac{1}{2} %$ , on plant and machinery account at 10% and on furniture and fixtures at 10%. Make a provision of 5% on debtors for doubtful debts. Carry forward the following unexpired amounts. (i) Fire insurance Rs. 125. (ii) Rates and taxes Rs. 240 (iii) Apprentice premium Rs. 400. (iv) Closing stock Rs. 29,390

From the following trail balance extracted from the books of MMN, prepare the trading and profit and loss account for the year ended 31st December, 2016. Name of AccountsDebit (Rs.)Credit (Rs.)Capital90,000Drawings6,480Land and Building25,000Plant and Machinery14,270Furniture and Fixtures 1,250Carriage Inwards 4,370Wages21,470Salaries 4,670Provision for Bad Debts 2,470Sales91,230Sales Return 1,760Bank Charges 140Coal, Gas and Water 720Rates and Taxes 840Discount 120Purchases42,160Purchase Return 8,460Bills Receivable 1,270Trade Expenses 1,990Sundry Debtors37,800Sundry Creditors12,170Stock(1st January, 2016)26,420Apprentice Premium 500Fire Insurance 490Cash at Bank13,000Cash in Hand 850Total¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,04,950––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,04,950–––––––––––––––––––– Additional Adjustments: Charge depreciation on land and building at 212 %, on plant and machinery account at 10% and on furniture and fixtures at 10%. Make a provision of 5% on debtors for doubtful debts. Carry forward the following unexpired amounts. (i) Fire insurance Rs. 125. (ii) Rates and taxes Rs. 240 (iii) Apprentice premium Rs. 400. (iv) Closing stock Rs. 29,390

Answer»

From the following trail balance extracted from the books of MMN, prepare the trading and profit and loss account for the year ended 31st December, 2016.

$\begin{matrix} Name of Accounts & Debit (Rs.) & Credit (Rs.) Capital & 90, 000 Drawings & 6, 480 Land and Building & 25, 000 Plant and Machinery & 14, 270 Furniture and Fixtures & 1, 250 Carriage Inwards & 4, 370 Wages & 21, 470 Salaries & 4, 670 Provision for Bad Debts & 2, 470 Sales & 91, 230 Sales Return & 1, 760 Bank Charges & 140 Coal, Gas and Water & 720 Rates and Taxes & 840 Discount & 120 Purchases & 42, 160 Purchase Return & 8, 460 Bills Receivable & 1, 270 Trade Expenses & 1, 990 Sundry Debtors & 37, 800 Sundry Creditors & 12, 170 Stock(1st January, 2016) & 26, 420 Apprentice Premium & 500 Fire Insurance & 490 Cash at Bank & 13, 000 Cash in Hand & 850 Total & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 2, 04, 950 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 2, 04, 950 - -------- - - -------- - \end{matrix}$

Additional Adjustments:

Charge depreciation on land and building at $2 \frac{1}{2} %$ , on plant and machinery account at 10% and on furniture and fixtures at 10%. Make a provision of 5% on debtors for doubtful debts.

Carry forward the following unexpired amounts.

(i) Fire insurance Rs. 125.

(ii) Rates and taxes Rs. 240

(iii) Apprentice premium Rs. 400.

(iv) Closing stock Rs. 29,390

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