The accountant of Khurana ascertained the business profits; but due to his defective knowledge or otherwise a number of discrepancies have crept in the Trading and Profit and Loss Account prepared by him. You are requested to draft these accounts properly ascertaining the cost of goods produced. The accounts prepared by the accountant are as under:
Trading and Profit and Loss Account for the year ending on Mar 31, 2010
|
Particulars |
Rs |
Rs |
Particulars |
Rs |
Rs |
|||||
|
To Purchases of |
By Last Year’s Balance |
21,550 |
||||||||
|
Raw Materials |
67,475 |
By Opening Stock: |
||||||||
|
Add: Returns Inwards |
350 |
Raw Materials |
2,000 |
|||||||
|
Add. Closing Stock: |
67,825 |
Work in Progress |
1,500 |
|||||||
|
Raw Materials |
6,075 |
Finished Stock |
2,050 |
5,550 |
||||||
|
W.I.P. |
5,000 |
By Sales |
85,500 |
|||||||
|
Finished Stock |
6,850 |
Less: Returns Outwards |
425 |
85,075 |
||||||
|
To Wages Productive |
17,925 |
85,750 |
By Carriage Outward |
525 |
||||||
|
To Factory Expenses |
10,000 |
Less: Carriage Inward |
500 |
25 |
||||||
|
To Factory Expenses |
8,200 |
By Trade Discount |
||||||||
|
paid in Advance |
2,900 |
On Purchases |
1,500 |
|||||||
|
To General Office |
1,250 |
Lest Cash Discount Allowed |
||||||||
|
Expenses |
3,000 |
By Net Loss |
50 |
1,450 |
||||||
|
To Distribution Expenses |
500 |
4,700 |
||||||||
|
To Sales Expenses |
3,500 |
|||||||||
|
Less Purchase Expenses |
3,000 |
500 |
||||||||
|
To Export Duty |
1,500 |
|||||||||
|
Less: Import duty |
1,000 |
500 |
||||||||
|
To Interest on Bank Loan |
3,000 |
|||||||||
|
To Depreciation on Plant |
2,500 |
|||||||||
|
To Depreciation on |
||||||||||
|
Office Furniture |
250 |
|||||||||
|
1,18,350 |
1,18,350 |
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