From the following particulars extracted from the books of Gambir, prepare Trading and Profit and Loss Account for the year ending on Mar 31, 2010 after making the necessary adjustments:
|
Rs |
Rs |
||
|
Gambirs’ Capital A/c |
1,08,100 |
Interest Received |
1,450 |
|
Stock (Apr 1, 2009) |
46,800 |
Cash at bank |
8,000 |
|
Sales |
2,89,600 |
Discount Received |
2,990 |
|
Sales Returns |
8,600 |
Investments @ 5% |
|
|
Purchases |
2,43,100 |
as on Apr 1, 2009 |
5,000 |
|
Purchases Returns |
5,800 |
Furniture (Apr 1, 2009) |
1,800 |
|
Capital Inwards |
18,600 |
Discount Allowed |
7,540 |
|
Rent |
5,700 |
General Expenses |
3,920 |
|
Salaries |
9,300 |
Audit Fees |
700 |
|
Sundry Debtors |
24,000 |
Fire Insurance Premium |
600 |
|
Sundry Creditors |
14,800 |
Travelling Expenses |
2,330 |
|
Loan from |
Postage and Telegrams |
870 |
|
|
State Bank of India @ 12% |
20,000 |
Cash on hand |
380 |
|
Interest paid |
900 |
Deposits at 10% as on |
|
|
Printing and Stationery |
3,400 |
Apr 1, 2009 (Dr.) |
30,000 |
|
Advertisement |
11,200 |
Drawings |
10,000 |
Adjustments
- Value of stock as on Mar 31, 2010 is Rs 78,600. This includes goods returned by customers on Mar 31, 2010 to the value of Rs 3,000 for which no entry has been passed in the books.
- Purchases include furniture purchased on Jan 1, 2010 for Rs 2,000.
- Depreciate furniture as 10% p.a.
|
Rs |
Rs |
||||
|
Mar 31, 2010 |
To Balance c/d |
20,000 |
Apr 1, 2009 |
By Balance b/d |
10,000 |
|
Mar 31,2010 |
By Bank |
10,000 |
|||
|
20,000 |
20,000 |
- The loan account from State Bank of India in the books of Gambir appears as follows:
- Sundry Debtors included Rs 4,000 due from Rahul and Sundry Creditors include Rs 2,000 due to him.
- Interest paid include Rs 600 paid to State Bank of India.
- Interest received represents Rs 200 from the Sundry Debtors and the balance on investments and deposits.
- Provide for interest payable to State Bank of India and for interest receivable on investments and deposits.
- Make a provision for doubtful debts at 5% on the balance under “Sundry Debtors.” No such provision needs to be made for the deposits.