From the following balances, prepare the trading and profit and loss account and balance sheet as on
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Question:
From the following balances, prepare the trading and profit and loss account and balance sheet as on March 31, 2014 | ||||
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Debit Balances | Amount | Credit Balances | Amount | |
Drawings | 6,300 | Credit | 150,000 | |
Cash at Bank | 13,870 | Discount Received | 2,980 | |
Bills Receivable | 1,860 | Loans | 15,000 | |
Land and Building | 42,580 | Purchases Return | 1,450 | |
Furniture | 5,130 | Sales | 281,500 | |
Discount allowed | 3,960 | Reserve for Bad Debts | 4,650 | |
Bank Charges | 100 | Creditors | 18,670 | |
Salaries | 6,420 | |||
Purchases | 199,080 | |||
Stock(opening) | 60,220 | |||
Sales Return | 1,870 | |||
Carriage | 5,170 | |||
Rent and Taxes | 7,680 | |||
General expenses | 3,630 | |||
Plant and Machinery | 31,640 | |||
Book Debts | 82,740 | |||
Bad Debts | 1,250 | |||
Insurance | 750 | |||
474,250 | 474,250 | |||
Adjustments | ||||
1. Closing stock Rs 70,000 | ||||
2. Create a reserve for bad and doubtful debts @10% on book debts | ||||
3. Insurance prepaid Rs. 50 | ||||
4. Rent Outstanding Rs. 150 | ||||
5. Interest on loan is due @6%p.a. | ||||
Related Book For
Accounting
ISBN: 978-0176509743
Volume 1, 2nd canadian Edition
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
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