From the following balances taken from the ledger of Shri Krishna on 31st March 2007, prepare the trading and profit and loss account for the year ended 31st March 2007 and the balance sheet as on 31st March 2007 of Shri Krisha. Particulars Amount Particulars Amount Sundry creditors Buildings Income tax Lease tools Cash at bank Sundry expenses Bank interest Purchases Wages Carriage inwards Sales Motor van Cash in hand 12,000 15,000 1,025 1,000 16,200 1,990 75 157,000 10,000 1,120 185,000 12,500 335 Bad debts Loan from RAM sundry debtors Investments Bad debts reserve Rent and rates Furniture Stock (1.4.2006) Capital Discount allowed Dividends received Drawings Bills payable 100 600 9,500 6,500 1,600 850 3,000 27,350 47,390 630 535 2,000 10,000 Adjustments to be made. a) Write off further sh. 300 as bad out of sundry debtors and create a provision for bad debts at 20% of debtors. b) Dividends accrued and due on investments is sh. 135 rates paid in advance sh. 100 and wages owing sh. 450. c) On 31.3.2007 stock was valued at sh. 15,000 and loose tools were valued at sh. 800 d) Write off 5% for depreciation on buildings and 40% on motor van. e) Provide for interest at 12% per annum due on loan taken on 1.6.2006. f) Income tax paid has been treated as drawings.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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From the following balances taken from the ledger of Shri Krishna on 31st March 2007, prepare the trading and profit and loss account for the year ended 31st March 2007 and the balance sheet as on 31st March 2007 of Shri Krisha.

Particulars

Amount

Particulars

Amount

Sundry creditors

Buildings

Income tax

Lease tools

Cash at bank

Sundry expenses

Bank interest

Purchases

Wages

Carriage inwards

Sales

Motor van

Cash in hand

12,000

15,000

1,025

1,000

16,200

1,990

75

157,000

10,000

1,120

185,000

12,500

335

Bad debts

Loan from RAM

sundry debtors

Investments

Bad debts reserve

Rent and rates

Furniture

Stock (1.4.2006)

Capital

Discount allowed

Dividends received

Drawings

Bills payable

100

600

9,500

6,500

1,600

850

3,000

27,350

47,390

630

535

2,000

10,000

Adjustments to be made.

a) Write off further sh. 300 as bad out of sundry debtors and create a provision for bad debts at 20% of debtors.

b) Dividends accrued and due on investments is sh. 135 rates paid in advance sh. 100 and wages owing sh. 450.

c) On 31.3.2007 stock was valued at sh. 15,000 and loose tools were valued at sh. 800

d) Write off 5% for depreciation on buildings and 40% on motor van.

e) Provide for interest at 12% per annum due on loan taken on 1.6.2006.

f) Income tax paid has been treated as drawings.

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