Reference no: EM131803213
Q) From the following extracts of Trial Balance as on 31/3/2003 and other additional information, prepare Profit and Loss Account and Balance Sheet.
|
|
|
|
|
|
|
|
Plant & Machinery
|
|
40500
|
Bad Debt
|
|
|
2200
|
Furniture and Fittings
|
|
15250
|
Bad Debts Recovered
|
1250
|
Bank Overdraft
|
|
160000
|
Salaries
|
|
|
32650
|
Capital
|
|
|
115000
|
Salary Payable
|
|
5350
|
Drawings
|
|
|
15000
|
Prepaid Rent
|
|
500
|
Purchases
|
|
230500
|
Rent
|
|
|
6500
|
Opening Stock
|
|
132250
|
Carriage Inward
|
|
2350
|
Wages
|
|
|
22325
|
Carriage Outward
|
|
3250
|
Provisions for Doubtful Debts
|
5700
|
Sales
|
|
|
290600
|
Provision for Discount on Debtors
|
1375
|
Advertisement Expenses
|
6750
|
Sundry Debtors
|
|
152500
|
Printing & Stationery
|
|
2200
|
Sundry Creditors
|
|
77500
|
Cash in Hand
|
|
2300
|
|
|
|
|
Cash at Bank
|
|
7250
|
|
|
|
|
|
|
|
|
Additional Information:
Difference in the trial balance, if any, can be taken as miscellaneous expenses or income.
Bank overdraft is secured against hypothecation of stock. The Bank overdraft outstanding as on 31/3/2003 accounted for 80% of drawing power. Such power is ascertained by deducting 20% as margin from the value of stock as on that date.
Purchase include sales return of Rs.5500/- and sales include purchase returns of Rs. 4750/-.
Goods withdrawn by the owner for own consumption amounts Rs.7500/- included in purchases.
Wages paid for installation of plant and machinery amounting to Rs.750/- were included in wages account.
Depreciation is to be provided on plant and machinery @ 15% p.a. and on furniture and fittings @ 10% p.a.
Create a provision for doubtful debts @ 5% and provision for discount on debtors @2.5% .
A debit balance of Rs.2500/- in the account of Ram, a creditor is included in the list of sundry Creditors.
Free samples distributed for publicity costing Rs.1250/-