Mrs. Bhagya submitted to you the following trial balance which she has not been able to agree. Rewrite the Trial Balance and prepare Trading and Profit and Loss Account for the year ended on Dec 31, 2009 and a balance as on that date after giving effect to the under mentioned adjustments:
|
Particulars |
Dr. Rs |
Dr. Rs |
|
Capital |
— |
64,000 |
|
Opening stock |
70,000 |
— |
|
Closing stock |
— |
75,160 |
|
Drawings |
13,220 |
— |
|
Return Inward |
— |
2,200 |
|
Carriage Inward |
4,960 |
— |
|
Deposit with Mr. x |
— |
5,600 |
|
Return Outward |
3,360 |
— |
|
Carriage Outward |
— |
2,900 |
|
Rent Paid |
3,200 |
— |
|
Rent Outstanding |
600 |
— |
|
Purchases |
52,000 |
— |
|
Sundry Debtors |
20,000 |
— |
|
Sundry Creditors |
— |
16,000 |
|
Furniture |
6,000 |
— |
|
Sales |
— |
1,16,000 |
|
Wages |
3,400 |
— |
|
Cash |
5,480 |
— |
|
Goodwill |
7,200 |
— |
|
Advertisement |
3,800 |
— |
|
1,93,220 |
2,81,860 |
Adjustments
- Write off Rs 2,400 as bad debts and make Reserve for Bad Debts on Sundry Debtors @ 5%
- Stock values at Rs 8,000 were destroyed by fire on Dec 20, 2009 but insurance company admitted a claim for Rs 6,000; and paid the sum in Jan 2010.
- Depreciate furniture by 10%: