The following information relates to the business of Mr. Shiv Kumar, who requests you to prepare...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following information relates to the business of Mr. Shiv Kumar, who requests you to prepare a Trading and Profit & Loss Account for the year ended 31st March, 20X2 and Balance Sheet as on that date: (a) Building Furniture Motorcar Inventory Bills payable Cash and bank balances Sundry debtors Bills receivable Sundry creditors Balance as on 31st March, 20X1 Sale of old papers and miscellaneous income 3,20,000 60,000 80,000 ? 28,000 1,80,000 1,60,000 32,000 1,20,000 Balance as on 31st March, 20X2 3,60,000 68,000 80,000 40,000 16,000 1,04,000 (b) Cash transactions during the year included the following besides certain other items: Cash purchases 20,000 Payment to creditors ? 28,000 ? 48,000 1,84,000 (c) Miscellaneous Trade expenses (including salaries etc.) Collection from debtors Other information: 80,000 2,00,000 Cash sales 80,000 Bills receivable drawn during the year amount to 20,000 and Bills payable accepted 16,000. Some items of old furniture, whose written down value on 31st March, 20X1 was 20,000 was sold on 30th September, 20X1 for 8,000. Depreciation is to be provided on Building and Furniture @ 10% p.a. and on Motorcar @ 20% p.a. Depreciation on sale of furniture to be provided for 6 months and for additions to Building for whole year. Of the Debtors, a sum of 8,000 should be written off as Bad Debt and a reserve for doubtful debts is to be created @ 2%. Mr. Shivkumar has been maintaining a steady gross profit rate of 30% on turnover. Outstanding salary on 31st March, 20X1 was 8,000 and on 31st March, 20X2 was 10,000. On 31st March, 20X1, Profit and Loss Account had a credit balance of 40,000. 20% of total sales and total purchases are to be treated as for cash. Additions in Furniture Account took place in the beginning of the year and there was no opening provision for doubtful debts. The following information relates to the business of Mr. Shiv Kumar, who requests you to prepare a Trading and Profit & Loss Account for the year ended 31st March, 20X2 and Balance Sheet as on that date: (a) Building Furniture Motorcar Inventory Bills payable Cash and bank balances Sundry debtors Bills receivable Sundry creditors Balance as on 31st March, 20X1 Sale of old papers and miscellaneous income 3,20,000 60,000 80,000 ? 28,000 1,80,000 1,60,000 32,000 1,20,000 Balance as on 31st March, 20X2 3,60,000 68,000 80,000 40,000 16,000 1,04,000 (b) Cash transactions during the year included the following besides certain other items: Cash purchases 20,000 Payment to creditors ? 28,000 ? 48,000 1,84,000 (c) Miscellaneous Trade expenses (including salaries etc.) Collection from debtors Other information: 80,000 2,00,000 Cash sales 80,000 Bills receivable drawn during the year amount to 20,000 and Bills payable accepted 16,000. Some items of old furniture, whose written down value on 31st March, 20X1 was 20,000 was sold on 30th September, 20X1 for 8,000. Depreciation is to be provided on Building and Furniture @ 10% p.a. and on Motorcar @ 20% p.a. Depreciation on sale of furniture to be provided for 6 months and for additions to Building for whole year. Of the Debtors, a sum of 8,000 should be written off as Bad Debt and a reserve for doubtful debts is to be created @ 2%. Mr. Shivkumar has been maintaining a steady gross profit rate of 30% on turnover. Outstanding salary on 31st March, 20X1 was 8,000 and on 31st March, 20X2 was 10,000. On 31st March, 20X1, Profit and Loss Account had a credit balance of 40,000. 20% of total sales and total purchases are to be treated as for cash. Additions in Furniture Account took place in the beginning of the year and there was no opening provision for doubtful debts.
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
Posted Date:
Students also viewed these accounting questions
-
Question 2: What kind of path/steps should the researcher follow, who wants to demonstrate/support the view that "There is a relationship between the COVID-19 spread indicators (cases, number of...
-
Sandra Bowen is the practice manager for a smaller medical practice with two physicians and support. She started with the practice as a medical assistant and was promoted to practice manager a little...
-
To achieve an account balance of $2 million 36 years from today, how much needs to be deposited today if the interest rate is 12%? Answer Format: Enter your answer as a number rounded to 2 decimal...
-
Record the following transactions in Journal. Post them into ledger and prepare a Trial Balance. Jan 1; Jan 2; Jan 10 Jan 15 Jan 20 Jan 28 Jan 31 Started business with cash Rs. 80,000 Bought...
-
A homogeneous wire with a weight per unit length of 0.041 lb/ft is used to form the figure shown. Determine the moment of inertia of the wire with respect to each of the coordinate axes. 15t 1.5h 1.5A
-
What is a Parts Count Estimate? What is its purpose and relevance?
-
Assume HPC, Inc., began December with 60 units of inventory that cost a total of $720. During December, HPC, Inc., purchased and sold goods as follows: HPC, Inc., uses perpetual inventory. Under the...
-
An office employs several clerks who create documents and one operator who enters the document information in a computer system. The group creates documents at a rate of 25 per hour. The operator can...
-
Solomon Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used airplanes. The first airplane is expected to cost $10,800,000; it...
-
The FY2022 income statement for ABC Company is provided below. Use the following assumptions to forecast ABC's income statement for FY2023: Net sales will increase by 2.0% (200 basis points) in...
-
What methodologies and tools are employed in the creation of high-fidelity prototypes, and how do these techniques balance cost-efficiency with the accuracy needed to simulate real-world interactions...
-
Classify the discontinuities in the function below at the given point. f(x) = - 9x + 18 X-3 ; x = 3
-
Pearson is considering the development of a new online platform. The initial cost of the project is $39 million, including programming, testing and content development. The company has a weighted...
-
A thin cylindrical shell of radius R 1 = 6 . 5 cm is surrounded by a second cylindrical shell of radius R 2 = 8 . 9 cm.Both cylinders are 9 . 0 m long and the inner one carries a total charge Q 1 = ...
-
determine eigen vectors for eigen values 31. 1 2 3 4 4321 4567 7654
-
3. For each of the following, calculate the cost of goods sold and the gross profit. Sales Beginning Inventory Purchases Ending Inventory 1. $125 000 32 000 74 250 33 500 2345 2. $750 585 85 600 410...
-
Post the meme that you have either found or created in your first post. Identify how your meme reflects the type of friendship you identified with it. Be sure to define the type of friendship you...
-
What are the key elements of a system investigation report?
-
In 2011, Abbotsford Inc. issued 1,000 common shares for land worth $149,000. (a) Prepare Abbotsfords journal entry to record the transaction. (b) Indicate the effect that the transaction has on cash....
-
Pablo Ltd. (PL) reproduces fine works of art as posters. The company was started 10 years ago with used equipment. Demand for the posters increased recently when PL began to glue the posters onto a...
-
RONA Inc., Bank of Montreal, and Air Canada are all Canadian companies with defined benefit plans. Access these companies financial statements for the 2009 fiscal year ends from SEDAR at...
-
Find P(C | L). Forty-eight percent of all Californians registered voters prefer life in prison without parole over the death penalty for a person convicted of first degree murder. Among Latino...
-
In words, what is C | L? Forty-eight percent of all Californians registered voters prefer life in prison without parole over the death penalty for a person convicted of first degree murder. Among...
-
Find P(L C). Forty-eight percent of all Californians registered voters prefer life in prison without parole over the death penalty for a person convicted of first degree murder. Among Latino...
Study smarter with the SolutionInn App