20. From the following particulars, prepare Trading and Profit and Loss
for the year ended 31st March 2001 and Balance Sheet as at that date :
Addition on Information
|Stock on 1st April, 2000||27000||Rent @ 250 pm.||2750|
|Returns (dr.)||7000||Cash in hand||18500|
|Bad Debts||1500||Intrest on Bank OD||9500|
|Prov. On Bad Debts||4000||Building||150000|
|Investment @ 10 p.a||20000||Capital||318000|
|Interest on Investments||1500||Drawings||28000|
|Prepaid Insurance||1200||Outstanding Wages||2000|
|Salaries (for 11 months)||6600||Goodwill||25000|
|Plant and Machinery 80000|
|Addition on 1st July 2000 20000||100000|
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.