1.

From the following Trial Balance and other information, prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date: Particulars Dr. (₹) Cr. (₹) Sundry Debtors 3,20,000 … Stock on 1st April, 2018 2,20,000 … Cash in Hand 350 … Cash at Bank 15,450 … Plant and Machinery 1,75,000 … Sundry Creditors … 1,06,500 General Expenses 10,750 … Sales … 13,45,000 Salaries 22,250 … Carriage Outwards 4,000 … Rent 9,000 … Bills Payable … 75,000 Purchases 11,88,700 … Discounts 11,000 … Premises 3,45,000 … Capital on 1st April, 2018 … 7,95,000 Total 23,21,500 23,21,500 Stock on 31st March, 2019 was ₹ 1,24,500. Rent was unpaid to the extent of ₹ 850 and ₹ 1,500 were outstanding for General Expenses; ₹ 4,000 are to be written off as bad debts out of the above debtors; and 5% is to be provided for doubtful debts. Depreciate Plant and Machinery by 10% and Premises by 2%.Manager is entitled to a commission of 5% on net profit after charging his commission.

Answer» From the following Trial Balance and other information, prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date:























































































































Particulars


Dr.


(₹)


Cr.


(₹)

Sundry Debtors
3,20,000



Stock on 1st April, 2018
2,20,000



Cash in Hand
350



Cash at Bank
15,450



Plant and Machinery
1,75,000



Sundry Creditors


1,06,500

General Expenses
10,750



Sales


13,45,000

Salaries
22,250



Carriage Outwards
4,000



Rent
9,000



Bills Payable


75,000

Purchases
11,88,700



Discounts
11,000



Premises
3,45,000



Capital on 1st April, 2018


7,95,000

Total
23,21,500


23,21,500




Stock on 31st March, 2019 was ₹ 1,24,500. Rent was unpaid to the extent of ₹ 850 and ₹ 1,500 were outstanding for General Expenses; ₹ 4,000 are to be written off as bad debts out of the above debtors; and 5% is to be provided for doubtful debts. Depreciate Plant and Machinery by 10% and Premises by 2%.

Manager is entitled to a commission of 5% on net profit after charging his commission.


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