From the following Trial Balance of Mr. Reddy, you are required to prepare Trading and Profit and Loss Account for the year ended on Mar 31, 2009 and a Balance Sheet on that date:
|
Debit Balance |
Credit Balance |
|
|
Particulars |
Rs |
Rs |
|
Capital |
— |
1,00,000 |
|
Drawings |
12,000 |
— |
|
Sundry Creditors |
— |
40,000 |
|
Cash in hand |
5,000 |
— |
|
Cash at bank |
11,600 |
— |
|
Sundry Debtors |
51,000 |
— |
|
10% Loan (taken on Sep 1, 2008) |
— |
20,000 |
|
Provision for Doubtful Debts |
— |
4,000 |
|
Furniture |
12,000 |
— |
|
Machinery |
28,400 |
— |
|
Stock (Apr 1, 2008) |
80,000 |
— |
|
Purchases |
1,80,000 |
— |
|
Rent and Taxes |
6,800 |
— |
|
Salaries |
18,000 |
— |
|
Manufacturing Wages |
25,000 |
— |
|
Sales |
— |
2,80,800 |
|
Sundry Expenses |
2,000 |
— |
|
Insurance (including a premium of Rs 600 per annum paid Sep 30, 2009) |
800 |
— |
|
Commission |
— |
1,400 |
|
Carriage |
4,000 |
— |
|
Travelling Expenses |
1,600 |
— |
|
Bills Receivable |
8,000 |
— |
|
4,46,200 |
4,46,200 |
Adjustments
- Stock on Mar 31, 2009 was Rs 76,000
- Write off bad debts Rs 1,000 and maintain the provision for doubtful debts at 5% on debtors
- Manufacturing wages include Rs 1,600 for erection of new machinery on Mar 1, 2009
- Depreciate machinery by 5% and furniture by 10%