Q2Additional Information:A. Closing stock Rs. 87,210.B. Depreciation to be provided on machinery and plant at 10% and office furniture at 5%.C. The provision for bad debts is to be increased by Rs. 4,000.D. Outstanding wages Rs. 3,210 and salaries Rs.920.E. Insurance premium Rs. 2,400 is included in machinery repairs by mistake.Requires:Prepare trading and profit and loss account for the year ended 31st December 2006 anda balance sheet as on that date. Q. Following is the Trial Balance of FOX Industries Limited as on 31st December 2006.ParticularsRsParticularsRsOFFICE SALARIES19860Share capital280,000128,40072,940292,620МАCHINERYPurchases return4290OPENING STOCKSales572,140PURCHASESLoan on mortgage85,000SALES RETURN3210Discount780Travellers' salaries and 32,760Provision for bad2500commissionDebtsFactory FuelOffice Expense4280Sundry Creditors17,2103220Total961,920Interest on Loan4250Carriage inwardCarriage OutwardFreehold premisesOffice rent and ratesFactory rates and43103420142,00027102220insuranceOffice furnitureMachinery repairsRoyalties paidBad debtsSundry debtorsCash in hand500039804710219062,8403270Cash at bank22,730Bills receivable17,860Manufacturing wages123,140961,920Total

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Q. Following is the Trial Balance of FOX Industries Limited as on 31st December 2006. Particulars Particulars Rs Rs OFFICE SALARIES 19860 Share capital 280,000 128,400 72,940 MACHINERY Purchases return 4290 OPENING STOCK Sales 572,140 85,000 Loan on mortgage Discount PURCHASES 292,620 SALES RETURN Travellers' salaries and 32,760 3210 780 Provision for bad Debts 2500 commission Factory Fuel Office Expense Interest on Loan Carriage inward Carriage Outward Freehold premises Office rent and rates Factory rates and Sundry Creditors Total 4280 17,210 3220 961,920 4250 4310 3420 142 2710 2220 insurance Office furniture Machinery repairs Royalties paid Bad debts 5000 3980 4710 2190 Sundry debtors Cash in hand Cash at bank 62,840 3270 22,730 17,860 Bills receivable Manufacturing wages Total 123,140 961,920

Q. Following is the Trial Balance of FOX Industries Limited as on 31st December 2006. Particulars Particulars Rs Rs OFFICE SALARIES 19860 Share capital 280,000 128,400 72,940 MACHINERY Purchases return 4290 OPENING STOCK Sales 572,140 85,000 Loan on mortgage Discount PURCHASES 292,620 SALES RETURN Travellers' salaries and 32,760 3210 780 Provision for bad Debts 2500 commission Factory Fuel Office Expense Interest on Loan Carriage inward Carriage Outward Freehold premises Office rent and rates Factory rates and Sundry Creditors Total 4280 17,210 3220 961,920 4250 4310 3420 142 2710 2220 insurance Office furniture Machinery repairs Royalties paid Bad debts 5000 3980 4710 2190 Sundry debtors Cash in hand Cash at bank 62,840 3270 22,730 17,860 Bills receivable Manufacturing wages Total 123,140 961,920

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 10MCQ

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