Q1. From the following Trial Balance prepare Trading and Profit and Loss Account for the year ended 31" December, 2020 and Balance Sheet as on that date: Dr. (Rs.) Cr. (Rs.) Drawings 10,000 46,000 1,50,200 3,400 22,660 38,600 840 1,640 Stock on 01/01/2019 Purchases and Purchases Returns Cash in Hand 600 Bank Balance Freehold Premises Trade Expenses Printing, stationery and Advertising Professional Charges Commission Received Investments as on I" Jan. @ 10% 280 3,300 4,000 Interest on above 200 Sundry Debtors and Creditors Wages Salaries 36,000 29,000 25,000 14,000 1,14,000 Capital Income Tax 1,600 6,300 550 3,200 3,050 4,000 Discount allowed and received 4,600 Sales Returns and Sales Bills Receivable /Bills Payable Office furniture Rent, Rates and Insurance Bad Debts Provisions 2,08,950 10,000 670 Total 3,71,320 3,71.320 Adjustments: (a) Provide for wages Rs. 5,000. (b) Write Off 5% depreciation on frechold premises and 10% on office furmiture. (e) Insurance to the extent of Rs. 200 relates to 2021. (d) Stock on 31.12.2020 is Rs. 5,20,00. (e) Charge interest on capital S% and on drawings Rs. 300. () Further bad debts are Rs. 1,000. (g) Provide for doubtful debts @ 5% on sundry debtors. (h) Make provisions for discount on debtors and reserve for discount on creditors @2%.
Q1. From the following Trial Balance prepare Trading and Profit and Loss Account for the year ended 31" December, 2020 and Balance Sheet as on that date: Dr. (Rs.) Cr. (Rs.) Drawings 10,000 46,000 1,50,200 3,400 22,660 38,600 840 1,640 Stock on 01/01/2019 Purchases and Purchases Returns Cash in Hand 600 Bank Balance Freehold Premises Trade Expenses Printing, stationery and Advertising Professional Charges Commission Received Investments as on I" Jan. @ 10% 280 3,300 4,000 Interest on above 200 Sundry Debtors and Creditors Wages Salaries 36,000 29,000 25,000 14,000 1,14,000 Capital Income Tax 1,600 6,300 550 3,200 3,050 4,000 Discount allowed and received 4,600 Sales Returns and Sales Bills Receivable /Bills Payable Office furniture Rent, Rates and Insurance Bad Debts Provisions 2,08,950 10,000 670 Total 3,71,320 3,71.320 Adjustments: (a) Provide for wages Rs. 5,000. (b) Write Off 5% depreciation on frechold premises and 10% on office furmiture. (e) Insurance to the extent of Rs. 200 relates to 2021. (d) Stock on 31.12.2020 is Rs. 5,20,00. (e) Charge interest on capital S% and on drawings Rs. 300. () Further bad debts are Rs. 1,000. (g) Provide for doubtful debts @ 5% on sundry debtors. (h) Make provisions for discount on debtors and reserve for discount on creditors @2%.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....
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Transcribed Image Text:Q1. From the following Trial Balance prepare Trading and Profit and Loss Account for the year
ended 31" December, 2020 and Balance Sheet as on that date:
Dr. (Rs.)
Cr. (Rs.)
Drawings
10,000
46,000
1,50,200
3,400
22,660
38,600
840
Stock on 01/01/2019
Purchases and Purchases Returns
Cash in Hand
600
Bank Balance
Freehold Premises
Trade Expenses
Printing, stationery and Advertising
1,640
280
Professional Charges
Commission Received
Investments as on I" Jan. @ 10%
3,300
4,000
Interest on above
200
Sundry Debtors and Creditors
Wages
Salaries
36,000
25,000
14,000
29,000
Capital
Income Tax
1,14,000
1,600
6,300
Discount allowed and received
4,600
Sales Returns and Sales
Bills Receivable /Bills Payable
Office furniture
Rent, Rates and Insurance
Bad Debts Provisions
Total
Adjustments:
550
3,200
3,050
4,000
2,08,950
10,000
670
3,71,320
3,71,320
(a) Provide for wages Rs. 5,000.
(b) Write Off 5% depreciation on frechold premises and 10% on office furmiture.
(e) Insurance to the extent of Rs. 200 relates to 2021.
(d) Stock on 31.12.2020 is Rs. 5,20,00.
(e) Charge interest on capital S% and on drawings Rs. 300.
() Further bad debts are Rs. 1,000.
(g) Provide for doubtful debts @ 5% on sundry debtors.
(h) Make provisions for discount on debtors and reserve for discount on creditors @2%.
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