Prepare trading and profit and loss account

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Reference no: EM13181697

On 1.4.2008, Mrs. Parul commenced business. She did not maintain proper books of accounts. At the end of the year following information was obtained after going through the records:

All cash received on cash sales was banked after keeping Rs 2000 p.m. for petty expenses and after withholding monthly drawing of Rs 1,000.
Counterfoils of pay-in-slips the following deposits.

	Rs
Capital contributed Mrs. Parul	2,00,000
Balance of Cash sales	1,56,000
Collection from Debtors	2,00,000

Counter foils cheques revealed the following payments:

	Rs
Payment to Creditors	3,00,000
Payment of Salary	70,000
Purchase of Furniture	20,000

Sales were effected at a uniform rate of gross profit at 25% on sales.
Discount allowed Rs.4,000; Discount received Rs.6,000; Bad debts Rs.2,000.
Petty cash expenses were postage Rs 400; Stationery Rs 2,000; Conveyance Rs 4,000 and rent Rs 4,400.
On 31.3.2009, amount due by debtors Rs 20,000 and the amount owing to creditors were Rs 40,000.

Prepare Trading and Profit and Loss Account for the year ended 31.3.2009 and a Balance Sheet as on that date.

Reference no: EM13181697

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