Required: 1. Trading profit and loss account for the year ended December 31, 1980. Balance Sheet as on that date. 2.
Required: 1. Trading profit and loss account for the year ended December 31, 1980. Balance Sheet as on that date. 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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SUBJECT: ACCOUNTING
Transcribed Image Text:EXERCISE8
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
Allowance for bad debts
Interest (Cr.)
6,000
20,000
35,000
12,400
5.000
12,000 Transporting
1,200
80,000 Stock
600
5,000
79,600
3,000
38,000
500
15,700
14,000
4,000
Capital
Bills reteivable
Purchases
Salary
1,600
Miscellaneous expenses
Adjusting Data :
Prepaid rent Rs, 2,000.
Prepaid advertisement Rs. 400.
Reserve for bad debts Rs. 1,000.
1.
2.
3.
4.
Salary Outstanding for the year Rs. 7,000.
Interest unearned Rs. 400.
Closing stock was valued at Rs. 16,450.
5.
6.
Required: 1.
Trading profit and loss account for the year ended December 31,
1980.
2 Balance Sheet as on that date.
From the following particulars prepare trading and profit and loss account for the
year ending on 31st December, 1988 and a balance sheet as on that date.
20,000
100
1,200 Capital
8,000 Interest on investment
2,000 Bills payable
3,400 Sales
7,000 Sundry Creditors
450
Drawing
Purchases
Investment
Wages
Sundry Debtors
Loose Tools
Cash in hand
Cash at bank
Building
Plant & Machinery
Bills receivable
Salaries
Ofice expenses
Discount
Rent
Bad Debts
et
550
23,000
5,050
400
3,000
Returns outwards
Loan
120
850
12,700
10,000
100
1,400
300
450
310
170
262
ACCOUNTING PRINCIPLES
500
200
Freight & Carriage
Insurance
Patent vights (10 years)
unexpired
Returns inwards
Furniture
2,000
420
530
52,100
52,100
Stock on 3ist December, 1988 was R 3500. There were outstanding liabilities in
respect of wages Rs. 240; salaries Rs. 190, insurance wans paid in advance to the extent of
Rs. 60; Depreciate plant and mnchinery by 10%; furniture G%, patents by 10% and loose
tools by 25%. Make a provision for 4 months interest on loan at 8 percent P.A.
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