Q1. From the following Trial Balance prepare Trading and Profit and Loss Account for the year ended 31" December, 2020 and Balance Sheet as on that date: Dr. (Rs.) Cr. (Rs.) Drawings 10,000 46,000 1,50,200 3,400 22,660 38,600 840 1,640 Stock on 01/01/2019 Purchases and Purchases Returns Cash in Hand 600 Bank Balance Freehold Premises Trade Expenses Printing, stationery and Advertising Professional Charges Commission Received Investments as on I" Jan. @ 10% 280 3,300 4,000 Interest on above 200 Sundry Debtors and Creditors Wages Salaries 36,000 29,000 25,000 14,000 1,14,000 Capital Income Tax 1,600 6,300 550 3,200 3,050 4,000 Discount allowed and received 4,600 Sales Returns and Sales Bills Receivable /Bills Payable Office furniture Rent, Rates and Insurance Bad Debts Provisions 2,08,950 10,000 670 Total 3,71,320 3,71.320 Adjustments: (a) Provide for wages Rs. 5,000. (b) Write Off 5% depreciation on frechold premises and 10% on office furmiture. (e) Insurance to the extent of Rs. 200 relates to 2021. (d) Stock on 31.12.2020 is Rs. 5,20,00. (e) Charge interest on capital S% and on drawings Rs. 300. () Further bad debts are Rs. 1,000. (g) Provide for doubtful debts @ 5% on sundry debtors. (h) Make provisions for discount on debtors and reserve for discount on creditors @2%.
Q1. From the following Trial Balance prepare Trading and Profit and Loss Account for the year ended 31" December, 2020 and Balance Sheet as on that date: Dr. (Rs.) Cr. (Rs.) Drawings 10,000 46,000 1,50,200 3,400 22,660 38,600 840 1,640 Stock on 01/01/2019 Purchases and Purchases Returns Cash in Hand 600 Bank Balance Freehold Premises Trade Expenses Printing, stationery and Advertising Professional Charges Commission Received Investments as on I" Jan. @ 10% 280 3,300 4,000 Interest on above 200 Sundry Debtors and Creditors Wages Salaries 36,000 29,000 25,000 14,000 1,14,000 Capital Income Tax 1,600 6,300 550 3,200 3,050 4,000 Discount allowed and received 4,600 Sales Returns and Sales Bills Receivable /Bills Payable Office furniture Rent, Rates and Insurance Bad Debts Provisions 2,08,950 10,000 670 Total 3,71,320 3,71.320 Adjustments: (a) Provide for wages Rs. 5,000. (b) Write Off 5% depreciation on frechold premises and 10% on office furmiture. (e) Insurance to the extent of Rs. 200 relates to 2021. (d) Stock on 31.12.2020 is Rs. 5,20,00. (e) Charge interest on capital S% and on drawings Rs. 300. () Further bad debts are Rs. 1,000. (g) Provide for doubtful debts @ 5% on sundry debtors. (h) Make provisions for discount on debtors and reserve for discount on creditors @2%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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