EXERCISESNo. 1. Pre-closing trial balance of Karim & Co., on December 31, 1980, is asunder:CashEquipmentsSundry debtorsFixture & fittingAdvertisementRentDelivery expensesSalesPurchase discountAllowance for bad debtsInterest (Cr.)CapitalBills reteivable6,00020,00035,00012,4005,00012,0001,200 Salary80,000 Stock1,6006005,00079,6003,00038,00050015,70014,0004,000PurchasesTransportingMiscellaneous expensesAdjusting Data :1.Prepaid rent Rs, 2,000.2.Prepaid advertisement Rs. 400.Reserve for bad debts Rs. 1,000.3.Salary Outstanding for the year Rs. 7,000.Interest unearned Rs. 400.4.5.6.Closing stock was valued at Rs. 16,450.Required: 1.Trading profit and loss account for the year ended December 31,1980.Balance Sheet as on that date.2.From the following particulars prepare trading and profit and loss account for theyear ending on 31st December, 1988 and a balance sheet as on that date.20,00010055023,0005,0504003,0001,2008,0002,0003,4007,000CapitalInterest on investmentBills payable.oorDrawingPurchasesInvestmentWagesSundry DebtorsLoose ToolsCash in handCash at bankBuildingPlant & MachineryBills receivableSalariesOffice expensesDiscountRentBad DebtsSalesSundry CreditorsReturns outwardsLoan45012085012,70010,0001001,400300450310170262ACCOUNTING PRINCIPLES500200Freight & CarriageInsurancePatent rights (10 years)unexpiredReturns inwardsFurniture2,00042053052,10052,100Stock on 31 st December, 1988 was Rs 3500. There were outstanding liabilities inrespect of wages Rs. 240; salaries Rs. 190; insurance was paid in advance to the extent ofRs. 60, Depreciate plant and niachinery by 10%; furniture 5%, patents by 10% and loosetools by 25%. Make a provision for 4 months interest on loan at 8 percent P.A.

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EXERCISES No. 1. Pre-closing trial balance of Karim & Co., on December 31, 1980, is as under: Cash Equipments Sundry debtors Fixture & fitting Advertisement Rent Delivery expenses Sales Purchase discount 6,000 Allowance for bad debts 20,000 Interest (Cr.) 35,000 Capital 12,400 5,000 12,000 Transporting 1,200 Salary 80,000 1,600 600 5,000 79,600 3,000 38,000 Bills reteivable Purchases 500 15,700 14,000 4,000 Stock Miscellaneous expenses Adjusting Data : 1. Prepaid rent Rs, 2,000. 2. Prepaid advertisement Rs. 400. 3. Reserve for bad debts Rs. 1,000. 4. Salary Outstanding for the year Rs. 7,000. 5. Interest unearned Rs. 400. 6. Closing stock was valued at Rs. 16,450. Required: 1. Trading profit and loss account for the year ended December 31, 1980. Balance Sheet as on that date

EXERCISES No. 1. Pre-closing trial balance of Karim & Co., on December 31, 1980, is as under: Cash Equipments Sundry debtors Fixture & fitting Advertisement Rent Delivery expenses Sales Purchase discount 6,000 Allowance for bad debts 20,000 Interest (Cr.) 35,000 Capital 12,400 5,000 12,000 Transporting 1,200 Salary 80,000 1,600 600 5,000 79,600 3,000 38,000 Bills reteivable Purchases 500 15,700 14,000 4,000 Stock Miscellaneous expenses Adjusting Data : 1. Prepaid rent Rs, 2,000. 2. Prepaid advertisement Rs. 400. 3. Reserve for bad debts Rs. 1,000. 4. Salary Outstanding for the year Rs. 7,000. 5. Interest unearned Rs. 400. 6. Closing stock was valued at Rs. 16,450. Required: 1. Trading profit and loss account for the year ended December 31, 1980. Balance Sheet as on that date

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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