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
PRTICULARS | Rs. | Particulars | Rs. |
Stock on 1st April, 2000 | 27000 | Rent @ 250 pm. | 2750 |
Purchases | 240000 | Debtors | 40000 |
Sales | 310000 | Creditors | 21500 |
Returns (dr.) | 7000 | Cash in hand | 18500 |
Returns(Cr.) | 12000 | Bank O.D | 50450 |
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 |
Insurance | 4800 | Commission (Cr.) | 6400 |
Prepaid Insurance | 1200 | Outstanding Wages | 2000 |
Salaries (for 11 months) | 6600 | Goodwill | 25000 |
Wages | 24000 | Advertising Development | 20000 |
Plant and Machinery 80000 | |||
Opening Balance | |||
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.