From the following Trial Balance of Ms. Mansi, prepare Trading and Profit and Loss
Account for the year ended 31st March 2020, and a Balance Sheet as of that date:

Additional information:
1. Half of the amount of the dishonored bill is irrecoverable
2. Create a provision of 5% on debtors
3. Wages and Salaries include 400 for the erection of new machinery
4. Depreciate machinery by 10% and furniture by 5%
5. Commission includes 600 received in advance
 

Transcribed Image Text:

Dr. Balances Machinery Travelling Expenses Return Inwards Drawings Bills Receivable Interest on Loan Repairs Sock (1.4.2019) Cash Wages and Salaries Purchases Furniture Debtors (including dishonored bill of ₹ 2,000) Stock (31.3.2020) (₹) 50,000 Sales 400 Creditors 3,000 Commission received 4,000 Loan @ 10% p.a. (on 1.10.19) 6,000 Capital 300 600 30,000 1,700 4,000 1,24,500 7,500 32,000 U 20,000 2,84,000 Cr. Balances (₹) 1,80,000 30,000 3,600 10,000 60,400 2,84,000 Dr. Balances Machinery Travelling Expenses Return Inwards Drawings Bills Receivable Interest on Loan Repairs Sock (1.4.2019) Cash Wages and Salaries Purchases Furniture Debtors (including dishonored bill of ₹ 2,000) Stock (31.3.2020) (₹) 50,000 Sales 400 Creditors 3,000 Commission received 4,000 Loan @ 10% p.a. (on 1.10.19) 6,000 Capital 300 600 30,000 1,700 4,000 1,24,500 7,500 32,000 U 20,000 2,84,000 Cr. Balances (₹) 1,80,000 30,000 3,600 10,000 60,400 2,84,000

Answer rating: 100% (QA)

Trading Account of Ms Mansi Dr Cr Particulars Amount Particulars Am... View the full answer