1.

Prepare Trading and Profit and Loss Account and Balance Sheet from the following Trial Balance and information as on 31st March, 2019: Name of Account Debit (₹) Credit (₹) Drawings and Capital 15,000 3,25,000 Plant and Machinery 2,00,000 – Motor Vehicle 1,50,000 – Return Inward and Outward 25,000 37,000 Stock on 1st April, 2018 82,000 – Purchases and Sales 4,40,000 6,75,000 Carriage Inward 6,000 – Trade Expenses 2,500 – Bad Debts 4,250 – Provision for Doubtful Debts – 6,000 Commission – 4,000 Rent, Rates & Taxes 12,000 – Salaries and Wages 24,000 – Debtors and Creditors 70,000 55,000 Fuel and Water 4,750 – Cash in Hand 16,500 – Cash at Bank 50,000 – Total 11,02,000 11,02,000 Adjustments:(i) Closing Stock was valued at ₹ 1,12,500.(ii) Commission include ₹ 1,200 being commission received in advance.(iii) Salaries and wages is outstanding for the month of Feb. & March, 2019.(iv) Depreciate Plant & Machinery by 15% and Motor Vehicle by 20%.(v) Write off ₹ 500 as further Bad Debts and maintain provision for doubtful debts at 1% on debtors.

Answer» Prepare Trading and Profit and Loss Account and Balance Sheet from the following Trial Balance and information as on 31st March, 2019:














































































































Name of Account Debit

()
Credit

()
Drawings and Capital 15,000 3,25,000
Plant and Machinery 2,00,000
Motor Vehicle 1,50,000
Return Inward and Outward 25,000 37,000
Stock on 1st April, 2018 82,000
Purchases and Sales 4,40,000 6,75,000
Carriage Inward 6,000
Trade Expenses 2,500
Bad Debts 4,250
Provision for Doubtful Debts 6,000
Commission 4,000
Rent, Rates & Taxes 12,000
Salaries and Wages 24,000
Debtors and Creditors 70,000 55,000
Fuel and Water 4,750
Cash in Hand 16,500
Cash at Bank 50,000
Total 11,02,000 11,02,000



Adjustments:

(i) Closing Stock was valued at ₹ 1,12,500.

(ii) Commission include ₹ 1,200 being commission received in advance.

(iii) Salaries and wages is outstanding for the month of Feb. & March, 2019.

(iv) Depreciate Plant & Machinery by 15% and Motor Vehicle by 20%.

(v) Write off ₹ 500 as further Bad Debts and maintain provision for doubtful debts at 1% on debtors.


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