Q) From the following extracts of Trial Balance as on 31/3/2003 and other additional information, prepare Profit and Los...
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Q) From the following extracts of Trial Balance as on 31/3/2003 and other additional information, prepare Profit and Loss Account and Balance Sheet.
Plant & Machinery | 40500 | Bad Debt | 2200 | ||||
Furniture and Fittings | 15250 | Bad Debts Recovered | 1250 | ||||
Bank Overdraft | 160000 | Salaries | 32650 | ||||
Capital | 115000 | Salary Payable | 5350 | ||||
Drawings | 15000 | Prepaid Rent | 500 | ||||
Purchases | 230500 | Rent | 6500 | ||||
Opening Stock | 132250 | Carriage Inward | 2350 | ||||
Wages | 22325 | Carriage Outward | 3250 | ||||
Provisions for Doubtful Debts | 5700 | Sales | 290600 | ||||
Provision for Discount on Debtors | 1375 | Advertisement Expenses | 6750 | ||||
Sundry Debtors | 152500 | Printing & Stationery | 2200 | ||||
Sundry Creditors | 77500 | Cash in Hand | 2300 | ||||
Cash at Bank | 7250 | ||||||
Additional Information:
Difference in the trial balance, if any, can be taken as miscellaneous expenses or income.
Bank overdraft is secured against hypothecation of stock. The Bank overdraft outstanding as on 31/3/2003 accounted for 80% of drawing power. Such power is ascertained by deducting 20% as margin from the value of stock as on that date.
Purchase include sales return of Rs.5500/- and sales include purchase returns of Rs. 4750/-.
Goods withdrawn by the owner for own consumption amounts Rs.7500/- included in purchases.
Wages paid for installation of plant and machinery amounting to Rs.750/- were included in wages account.
Depreciation is to be provided on plant and machinery @ 15% p.a. and on furniture and fittings @ 10% p.a.
Create a provision for doubtful debts @ 5% and provision for discount on debtors @2.5% .
A debit balance of Rs.2500/- in the account of Ram, a creditor is included in the list of sundry Creditors.
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