Loading....
Coupon Accepted Successfully!

 

Illustration 7


Prepare the Trading and Profit and Loss Account and the Balance Sheet from the following balances, relating to the year ending 31st march 2008:

 

Particulars

Rs.

Particulars

Rs.

Capital

100000

Creditors

12000

Return outwards

5000

Sales

164000

Bills Payable

5000

Plant and Machinery

40000

Sundry Debtors

24000

Drawings

10000

Purchases

105000

Return inwards

3000

Wages

50000

Bank

10000

Repairs

500

Stock (1.4.2007)

20000

Rent

4000

Manufacturing expenses

8000

Trade Expenses

7000

Bad Debts

2000

Carriage

1500

Fuel and Power

1000


Additional Information:
  1. The closing stock Rs. 14500
  2. Depreciation on Plant and Machinery Rs.4000
  3. Allow 5% interest on capital and charge interest on drawings@ 6%
  4. A sum of Rs. 400 is due for repairs
  5. A cheque of Rs. 2000 deposited in the last week of December was reported to have been dishonored.

TRADING AND PROFIT AND LOSS ACCOUNT

for the year ended 31st March 2008

Particulars

Rs.

Rs.

Particulars

Rs.

Rs.

To Opening Stock

 

20,000

By Sales

164,000

 

To Purchases

105,000

 

Less Returns Inwards

3,000

161,000

Less Returns outwards

5,000

100,000

By Closing Stock

 

14,500

To Wages

 

50,000

By Gross Loss c/d

 

5,000

 

To Manufacturing Expenses

 

 

8,000

 

 

 

To Carraige

 

1,500

 

 

 

To Fuel and Power

 

1,000

 

 

 

 

 

 

 

 

 

 

 

180,500

 

 

180,500

 

 

 

 

 

 

To Gross Loss c/d

 

5,000

By Interest on Drawings

 

600

To Repairs

500

 

By Net Loss transferred to Capital A/c

 

27,300

Add: Unpaid Repairs

400

900

 

 

 

To Rent

 

4,000

 

 

 

To Trade Expenses

 

7,000

 

 

 

To Bad Debts

 

2,000

 

 

 

To Interest on Capital

 

5,000

 

 

 

To Dep on Plant and Machinery

 

4,000

 

 

 

 

 

 

 

 

 

 

 

27,900

 

 

27,900

BALANCE SHEET

as at 31st March 2008

Liabilities

Rs.

Rs.

Assets

Rs.

Rs.

Current Liabilities

 

 

Current Assets

 

 

Creditors

 

12,000

Bank

10,000

 

Bills Payable

 

5,000

Less: Dishonoured Cheque

2,000

8,000

Outstanding Repairs

 

400

Debtors

24,000

 

Capital

 

 

Add: Dishonoured cheque

2,000

26,000

Opening Balance

100,000

 

Closing Stock

 

14,500

Add: Interest on Capital

5,000

 

Fixed Assets

 

 

 

105,000

 

Plant and Machinery

40,000

 

Less: Drawings

10,000

 

Less: Depreciation

4,000

36,000

Interest on Drawings

600

 

 

 

 

Net Loss

27,300

67,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

84,500

 

 

84,500





Test Your Skills Now!
Take a Quiz now
Reviewer Name