The following is the Trial Balance of Automatic Motors and Garage on March 31 2018: The following

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The following is the Trial Balance of Automatic Motors and Garage on March 31 2018:The following additional information is also given to you:

(a) The loan was taken on January 1, 2018 on which 12% interest is to be paid.

(b) Stock in hand on March 31, 2018 were as under

(i) Tools ₹5,000

(ii) Petrol and oil ₹4,300

(iii) Spare parts and tyres ₹10,000.

(c) Petrol and oil whose value were ₹15,600 and ₹1,800 were used by hired cars and the repairs department respectively. Besides, the owner of the garage drew petrol and oil worth ₹3,000 for his personal car.

(d) The repairs department performed work during the year as under: On owner’s car ₹600; On hire cars ₹7,500.

(e) Spare parts used by the repairs department in the year cost ₹4,000 and the hire cars ₹750.

(f) Depreciation on hire cars to be provided at 30% p.a.

(g) Licences and taxes amounting to ₹200 on owner’s car have been paid and included in rent, rates and taxes.

(h) Rent, rates and taxes to be distributed as under:

(i) Repairs department 1/2

(ii) Spare parts 1/4

(iii) Garage 1/8

(iv) Office 1/8

You are required to prepare a

(a) Department Trading Account

(b) Profit and Loss Account for the year ending March 31, 2018

(c) Balance Sheet as on that date.

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Related Book For  answer-question

Financial Accounting Volume II

ISBN: 9789387886230

4th Edition

Authors: Mohamed Hanif, Amitabha Mukherjee

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