i. Stock was not taken on 31st March 2001 but only on 6th April 2001. It was then valued at Purchases and Sales between these two dates were e 16,000 and 12,000 respectively. Rate of gross profit included in these sales was 20% on cost. ii) A debtor for is also a creditor for e 7,500. iii) Create a provision for doubtful debts @ 5% on debtors and also provide 3% for discount on debtors. (iv) Charge 20% p.a. depreciation on old machinery and 10% p.a. on addition during the year. Also depreciate Building by 10% p.a. V) Commission received in advance amounted to 800. vi) Write off 20% of Goodwill and Advertising Development.
for the year ended 31st March 2001 and Balance Sheet as at that date :
Addition on Information
then valued at Purchases and Sales between these two dates were e 16,000 and 12,000 respectively. Rate of gross profit included in these sales was 20% on cost.
ii) A debtor for is also a creditor for e 7,500.
iii) Create a provision for doubtful debts @ 5% on debtors and also provide
3% for discount on debtors.
(iv) Charge 20% p.a. depreciation on old machinery and 10% p.a. on addition
during the year. Also depreciate Building by 10% p.a.
V) Commission received in advance amounted to 800.
vi) Write off 20% of Goodwill and Advertising Development.
Particulars
Capital
Plant and Machinery
Office Furniture and Fittings
Stock on 1st April, 2017
Accrued Commission
Sundry Debtors
Cash in Hand
Cash at Bank
Wages
Salaries
Purchases
Sales
Bills Receivable
Bills Payable
Sundry
Returns Inward
Provision for Doubtful Debts Drawings
Returns Outward
Rent
Factory Lighting and Heating
Insurance
General Expenses
Bad Debts
Discount
Total
19.65
00
Dr. (2)
Cr. ()
40,000
50,000
2,600
48,000
12,000
45,700
400
6,500
1,50,000
14,000
2,13,500
00
inc
4,80,000
7,200
5,600
52,000
9,300
2,500
7,000
5,500
6,000
800
6,300
1,000
2.500
6,500
5,89,300
20
3,700
5,89,300
Following adjustments are to be made:
(a) Stock on 31st March, 2018 52,000.
(b) Three months' factory lighting and heating due but not paid * 300.
(c) 5% depreciation to be written off on furniture.
(d) Write off further Bad Debts 700.
(e) Provision for Doubtful Debts to be increased to 3,000 and Provision of Discount on Debtors @ 2% to be made.
(f) During the year, machinery was purchased for 20,000 but it was debited to the Purchases Account. You are required to prepare Trading Account, Profit and Loss Account and Balance Sheet
From the following trial balance, you are required to prepare Trading and Profit & Loss A/c for the year ending 31st March, 2001 and a Balance sheet as at that date: