SUBJECT: ACCOUNTING EXERCISE8No. 1. Pre-closing trial balance of Karim & Co., on December 31, 1980, is asunder.CashEquipmentsSundry debtorsFixture & fittingAdvertisementRentDelivery expensesSalesPurchase discountAllowance for bad debtsInterest (Cr.)6,00020,00035,00012,4005.00012,000 Transporting1,20080,000 Stock6005,00079,6003,00038,00050015,70014,0004,000CapitalBills reteivablePurchasesSalary1,600Miscellaneous expensesAdjusting Data :Prepaid rent Rs, 2,000.Prepaid advertisement Rs. 400.Reserve for bad debts Rs. 1,000.1.2.3.4.Salary Outstanding for the year Rs. 7,000.Interest unearned Rs. 400.Closing stock was valued at Rs. 16,450.5.6.Required: 1.Trading profit and loss account for the year ended December 31,1980.2 Balance Sheet as on that date.From the following particulars prepare trading and profit and loss account for theyear ending on 31st December, 1988 and a balance sheet as on that date.20,0001001,200 Capital8,000 Interest on investment2,000 Bills payable3,400 Sales7,000 Sundry Creditors450DrawingPurchasesInvestmentWagesSundry DebtorsLoose ToolsCash in handCash at bankBuildingPlant & MachineryBills receivableSalariesOfice expensesDiscountRentBad Debtset55023,0005,0504003,000Returns outwardsLoan12085012,70010,0001001,400300450310170262ACCOUNTING PRINCIPLES500200Freight & CarriageInsurancePatent vights (10 years)unexpiredReturns inwardsFurniture2,00042053052,10052,100Stock on 3ist December, 1988 was R 3500. There were outstanding liabilities inrespect of wages Rs. 240; salaries Rs. 190, insurance wans paid in advance to the extent ofRs. 60; Depreciate plant and mnchinery by 10%; furniture G%, patents by 10% and loosetools by 25%. Make a provision for 4 months interest on loan at 8 percent P.A.

Answered: Required: 1. Trading profit and loss…

Business

Accounting

Required: 1. Trading profit and loss account for the year ended December 31, 1980. Balance Sheet as on that date. 2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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