Question 3:
Following Trial Balance has been extracted from the books of Prasad on 31st
March, 2022:
|
Particulars |
Dr. (`) |
Particulars |
Cr. (`) |
|
Machinery |
4,00,000 |
Capital |
9,00,000 |
|
Cash
at Bank |
1,00,000 |
Sales |
16,00,000 |
|
Cash
in Hand |
50,000 |
Sundry
Creditors |
4,50,000 |
|
Wages |
1,00,000 |
Interest
Received |
30,000 |
|
Purchases |
8,00,000 |
|
|
|
Stock
on 1st April, 2018 |
6,00,000 |
|
|
|
Sundry
Debtors |
4,40,000 |
|
|
|
Bills
Receivable |
2,90,000 |
|
|
|
Rent |
45,000 |
|
|
|
Commission |
25,000 |
|
|
|
General
Expenses |
80,000 |
|
|
|
Salaries |
50,000 |
|
|
|
|
29,80,000 |
|
29,80,000 |
|
|
|
|
|
Additional Information:
(i) Outstanding salaries were ` 45,000.
(ii) Depreciate Machinery at 10%.
(iii) Wages outstanding were `
5,000.
(iv) Rent prepaid `
10,000.
(v) Provide for interest on capital @ 5% per annum.
(vi) Stock on 31st March, 2022 `
8,00,000.
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2022
and Balance Sheet as at that date.
Note: In this question, in the book, amount of Machinery is given
as ` 2,40,000 by mistake, it is may
be typing mistake.
Answer:
|
Financial Statement of M/s. Ram Prasad & Sons |
||||
|
Trading Account for the year ended March 31, 2022 |
||||
|
Dr. |
|
|
Cr. |
|
|
Particulars |
(`) |
Particulars |
(`) |
|
|
Opening Stock |
6,00,000 |
Sales |
16,00,000 |
|
|
Purchases |
8,00,000 |
Closing Stock |
8,00,000 |
|
|
Wages |
1,00,000 |
|
|
|
|
Add: Outstanding Wages |
5,000 |
1,05,000 |
|
|
|
Gross Profit (Balancing Figure) |
8,95,000 |
|
|
|
|
|
|
|
|
|
|
|
24,00,000 |
|
24,00,000 |
|
|
|
|
|
|
|
|
Profit and Loss Account for the year ended March 31, 2022 |
||||||
|
Dr. |
|
Cr. |
||||
|
Particulars |
Amount (`) |
Particulars |
Amount (`) |
|||
|
Rent |
45,000 |
|
Gross Profit |
8,95,000 |
||
|
Less: Prepaid Rent |
(10,000) |
35,000 |
Interest Received |
30,000 |
||
|
Commission |
25,000 |
|
|
|||
|
General Expenses |
80,000 |
|
|
|||
|
Salaries |
50,000 |
|
|
|
||
|
Add: Outstanding Salaries |
45,000 |
95,000 |
|
|
||
|
Depreciation on Machinery |
40,000 |
|
|
|||
|
Net Profit (Balancing Figure) |
6,50,000 |
|
|
|||
|
|
9,25,000 |
|
9,25,000 |
|||
|
|
|
|
|
|||
|
Balance Sheet as on March 31, 2022 |
|||||
|
Liabilities |
Amount (`) |
Assets |
Amount (`) |
||
|
Capital |
9,00,000 |
|
Fixed Assets |
|
|
|
Add: Net Profit |
6,50,000 |
15,50,000 |
Machinery |
4,00,000 |
|
|
Current Liabilities |
|
Less: 10% Depreciation |
(40,000) |
3,60,000 |
|
|
Sundry Creditors |
4,50,000 |
Current Assets |
|
||
|
Outstanding Salary |
45,000 |
Closing Stock |
8,00,000 |
||
|
Outstanding Wages |
5,000 |
Sundry Debtors |
4,40,000 |
||
|
|
|
Bills Receivable |
2,90,000 |
||
|
|
|
Prepaid Rent |
10,000 |
||
|
|
|
Cash at Bank |
1,00,000 |
||
|
|
|
Cash in Hand |
50,000 |
||
|
|
20,50,000 |
|
20,50,000 |
||
|
|
|
|
|
||
Question 4:
From the following Trial Balance of Shradha as on
31st March, 2022, prepare Trading and Profit and Loss Account and Balance
Sheet:
|
Heads
of Accounts |
Debit Balances |
Credit Balances |
|
|
Capital |
|
… |
80,000 |
|
Drawings |
|
18,000 |
… |
|
Sales |
|
… |
1,55,000 |
|
Purchases |
|
82,600 |
… |
|
Stock
(1st April, 2018) |
|
42,000 |
… |
|
Returns
Outward |
|
… |
1,600 |
|
Carriage
Inwards |
|
1,200 |
… |
|
Wages |
|
4,000 |
… |
|
Power |
|
6,000 |
… |
|
Machinery |
|
50,000 |
… |
|
Furniture |
|
14,000 |
… |
|
Rent |
|
22,000 |
… |
|
Salary |
|
15,000 |
… |
|
Insurance |
|
3,600 |
… |
|
8%
Bank Loan |
|
… |
25,000 |
|
Debtors |
|
20,600 |
… |
|
Creditors |
|
… |
18,900 |
|
Cash
in Hand |
|
1,500 |
… |
|
Total |
|
2,80,500 |
2,80,500 |
|
|
|
|
|
Adjustments:
(i) Closing Stock `64,000.
(ii) Wages outstanding `2,400.
(iii) Bad Debts ` 600.
(iv) Provision for Doubtful Debts to be 5%.
(v) Rent is paid for 11 months.
(vi) Insurance premium is paid per annum, ended 31st
May, 2022.
(vii) Loan from the bank was taken on 1st October, 2018.
(viii) Provide Depreciation on machinery @ 10% and on Furniture @ 5%.
Answer:
|
Financial statement of M/s. Shradha & Sons |
||||||
|
Trading Account for
the year ended March 31, 2022 |
||||||
|
Dr. |
|
Cr. |
||||
|
Particulars |
(`) |
Particulars |
(`) |
|||
|
Opening Stock |
42,000 |
Sales |
1,55,000 |
|||
|
Purchases |
82,600 |
|
|
|
||
|
Less: Return Outwards |
(1,600) |
81,000 |
|
|
||
|
Carriages Inwards |
1,200 |
Closing Stock |
64,000 |
|||
|
Wages |
4,000 |
|
|
|
||
|
Add: Outstanding Wages |
2,400 |
6,400 |
|
|
||
|
Power |
6,000 |
|
|
|||
|
Gross Profit (Balancing Figure) |
82,400 |
|
|
|||
|
|
2,19,000 |
|
2,19,000 |
|||
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
Profit and Loss Account for
the year ended March 31, 2022 |
||||
|
Dr. |
|
|
Cr. |
|
|
Particulars |
(`) |
Particulars |
(`) |
|
|
Rent |
22,000 |
|
Gross Profit |
82,400 |
|
Add: Outstanding for One month (22,000/11) |
2,000 |
24,000 |
|
|
|
Salary |
15,000 |
|
|
|
|
Insurance |
3,600 |
|
|
|
|
Less: Prepaid 2 month(3,600 × 2/12) |
(600) |
3,000 |
|
|
|
Outstanding Interest on Bank Loan (25,000 × 8% × 6/12) |
1,000 |
|
|
|
|
Bad Debts |
600 |
|
|
|
|
Add: Provision for Doubtful Debts |
1,000 |
1,600 |
|
|
|
Depreciation on: |
|
|
|
|
|
Machinery |
5,000 |
|
|
|
|
Furniture |
700 |
5,700 |
|
|
|
Net Profit (Balancing Figure) |
32,100 |
|
|
|
|
|
82,400 |
|
82,400 |
|
|
|
|
|
|
|
|
Balance Sheet as
on March 31, 2022 |
|||||
|
Liabilities |
(`) |
Assets |
(`) |
||
|
Capital |
80,000 |
|
Fixed Assets |
|
|
|
Add: Net Profit |
32,100 |
|
Machinery |
50,000 |
|
|
Less: Drawings |
(18,000) |
94,100 |
Less: 10% Depreciation |
(500) |
45,000 |
|
8% Bank Loan |
25,000 |
|
Furniture |
14,000 |
|
|
Add: Outstanding Interest |
1,000 |
26,000 |
Less: 5% Deprecation |
(700) |
13,300 |
|
Current Liabilities |
|
Current Assets |
|
||
|
Creditors |
18,900 |
Closing Stock |
64,000 |
||
|
Wages Outstanding |
2,400 |
Debtors |
20,600 |
|
|
|
Rent Outstanding |
2,000 |
Less: Bad Debts |
(600) |
|
|
|
|
|
Less: 5% Provision for doubtful Debts |
(1,000) |
19,000 |
|
|
|
|
Prepaid Insurance |
600 |
||
|
|
|
Cash in hand |
1,500 |
||
|
|
1,43,400 |
|
1,43,400 |
||
|
|
|
|
|
||
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