Prepare Trading Account and Profit and Loss Account for the period ending on 31* December 2006 and a Balance Sheet as at that date from the following Trial Balance of Asian Trading Company. Debit (Rs) 30,000 | 4,000 | 6,000 47,000 Credit (Rs) Opening Stock Cash in hand. Cash at bank. Purchases. Sales Capital. Drawings. Furniture. Salaries outstanding. Sundry debtors. Sundry creditors. Income Tax. Machinery. Building. Interest on investment. 1,31,400 1,83,200 8,400 24,000 26,00 33,600 25,000 1,200 36,000 | 80,000 1,600 24,000 | 26,000 6,000 3,30,400 Wages. Salaries. General expenses. Total. 3,30,400 The following additional information is supplied. 1. Stock in hand on 31* December,2006 is Rs. 32,000 2. Machinery and Building are to be depreciated at the rate of 5 and 2percent p.a and Furniture at the rate of 10 percent p.a. 3. Provide for doubtful debts@5% and for discount @5% on debtors. 4. Create reserve for discount on creditors@ 3%. 5. Wages payable Rs. 3,000.
Prepare Trading Account and Profit and Loss Account for the period ending on 31* December 2006 and a Balance Sheet as at that date from the following Trial Balance of Asian Trading Company. Debit (Rs) 30,000 | 4,000 | 6,000 47,000 Credit (Rs) Opening Stock Cash in hand. Cash at bank. Purchases. Sales Capital. Drawings. Furniture. Salaries outstanding. Sundry debtors. Sundry creditors. Income Tax. Machinery. Building. Interest on investment. 1,31,400 1,83,200 8,400 24,000 26,00 33,600 25,000 1,200 36,000 | 80,000 1,600 24,000 | 26,000 6,000 3,30,400 Wages. Salaries. General expenses. Total. 3,30,400 The following additional information is supplied. 1. Stock in hand on 31* December,2006 is Rs. 32,000 2. Machinery and Building are to be depreciated at the rate of 5 and 2percent p.a and Furniture at the rate of 10 percent p.a. 3. Provide for doubtful debts@5% and for discount @5% on debtors. 4. Create reserve for discount on creditors@ 3%. 5. Wages payable Rs. 3,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Prepare Trading Account and Profit and Loss Account for the period ending on 31* December 2006
and a Balance Sheet as at that date from the following Trial Balance of Asian Trading Company.
Debit (Rs)
30,000
4,000
6,000
47,000
Credit (Rs)
Opening Stock
Cash in hand.
Cash at bank.
Purchases.
Sales
Capital.
Drawings.
Furniture.
1,31,400
1,83,200
8,400
24,000
Salaries outstanding.
Sundry debtors.
Sundry creditors.
26,00
33,600
25,000
Income Tax.
1,200
36,000
80,000
1,600
24,000
26,000
6,000
3,30,400
Machinery.
Building.
Interest on investment.
Wages.
Salaries.
General expenses.
Total.
3,30,400
The following additional information is supplied.
1. Stock in hand on 31* December, 2006 is Rs. 32,000
2. Machinery and Building are to be depreciated at the rate of 5 and 2percent p.a and Furniture
at the rate of 10 percent p.a.
3. Provide for doubtful debts@5% and for discount @5% on debtors.
4. Create reserve for discount on creditors@ 3%.
5. Wages payable Rs. 3,000.
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