Mr. Shewag carries on a retail business and his Trial Balance on Mar 31, 2009 is as follows:
|
Particulars |
Dr. Rs |
Cr. Rs |
|
Purchases |
11,31,250 |
— |
|
Sales |
— |
14,13,300 |
|
Returns Inwards |
8,500 |
— |
|
Returns Outwards |
— |
6,240 |
|
Provision for Doubtful Debts |
— |
10,400 |
|
Sundry Debtors |
76,400 |
— |
|
Sundry Creditors |
— |
51,052 |
|
Bills Payable (promissory notes to be paid) |
— |
17,900 |
|
Stock in the beginning |
1,13,450 |
— |
|
Wages |
40,274 |
— |
|
Salaries |
37,150 |
— |
|
Furniture |
30,150 |
— |
|
Alternations to shop |
9,000 |
— |
|
Postage, Stationery, Insurance, etc. |
26,452 |
— |
|
Heading and Lighting |
4,700 |
— |
|
Trade Expenses |
20,628 |
— |
|
Rent, Rates and Taxes |
27,034 |
— |
|
Bad Debts |
1,050 |
— |
|
Loan at 15% (to Ajay, Dec 1, 2008) |
6,000 |
— |
|
Investments (at cost) |
23,000 |
— |
|
Dividends from Investments |
— |
3,650 |
|
Unexpired Insurance |
1,048 |
— |
|
Cash at Hand and at Bank |
31,504 |
— |
|
Bills Receivable (amount receivable on Promissory Notes |
38,140 |
— |
|
Promissory Notes |
38,140 |
— |
|
Capital Account |
— |
1,54,000 |
|
Drawings Account |
32,000 |
— |
|
Outstanding Wages |
— |
4,038 |
|
Rent Accrued but not Paid |
— |
1,500 |
|
Depreciation on Furniture |
3,350 |
— |
|
Additions to Furniture |
1,000 |
— |
|
16,62,080 |
16,62,080 |
Prepare the Trading and Profit and Loss Account for the year ended on Mar 31, 2009 and a Balance Sheet on that date after taking into consideration the following:
- Sundry Debtors include an item of Rs 500 for goods supplied to the proprietor and on item of Rs 1,200 due from a customer who has become insolvent.
- Provision for doubtful debts is to be maintained at 5% of the Sundry Debtors.
- One fifth of alternations to the shop is to be written off.
- Goods of the value of Rs 2,000 have been destroyed by fire and the insurance company had admitted the claim for Rs 1,400 only.
- Bills receivable include a dishonored promissory note for Rs 5,300.
- Stock at the end was Rs 1,21,040.
- An intimation from the bank that a customer’s cheque for Rs 2,000 had been dishonored is still to be entered in the books.