Plz solve ques 7

Plz solve ques 7 20 Clwge of CS(XI 13 ' -(4i & by p.a hy p.a. admitted claim (6) Create a ptxwisicm for debts at Bad debts off 0.000 for on dehtMS a: 31st March. 2013.

Dear Student

 
Trading Account
Debit         Credit
Particulars   Amount Particulars   Amount
           
Opening Stock   30,000      
Purchases 365,000   Sales 640,000  
Less : Purchase return 3,000 362,000 Less : sales Returns 0 640,000
Salaries and Wages   9,000      
      Closing Stock   46,000
           
           
Gross Profit   285,000      
           
           
           
    686,000     686,000


 
Profit and Loss Account
Debit         Credit
Particulars   Amount Particulars   Amount
Salaries and Wages   27,000      
Upkeep of Sales Van   3,200 Gross Profit   285,000
Octori   4,800 Commission   7,000
Insurance   4,800 Interest on Investments   800
Provision for Doubtful Debts   12,000 Insurance Claim Receivable   9,000
Depreciation :          
Plant and Equipment 25,000        
Sales Van for 3 months 10,000 35,000      
Loss Due to Fire   15,000      
Provision for Discount on Debtors   4,560      
           
Net profit   195,440      
    301,800     301,800
 
Balancesheet
           
Liabilities   Amount Assets   Amount
           
Capital  400,000   Investment   10,000
Add : Net Profit 195,440   Plant and Equipment   225,000
Less : Drawings (24,000)   Debtors 123,000  
Less : Income Tax  0   Less : Further bad debts (3,000)  
Add : Interest on Capital  0   Less : Provision for Doubtful Debt (6,000)  
Less :interest on Drawings 0 571,440 Less : Provision for Discount on debtors (4,560) 109,440
      Sales Van   190,000
      Cash in hand and Bank   27,000
      Prepaid Insurance   200
      Commission receivable   2,000
B/P   2,000 Insurance Claim receivable   9,000
Creditors   40,000 Closing Stock   46,000
Sales Tax Liability   5,200      
           
           
    618,640     618,640

Calculation of Provision for BadDebts to be charged from profit and loss A/c
Bad Debts in trial balance 7,000  
Add: Further Bad Debts 3,000  
Add : New Provision 6,000  
     
Less : Old Provision (4,000) 12,000


 
Calculation of Closing Debtors, Provision and Discount
Opening debtors (trial balance) 123,000
Less: Furtner Bad Debts 3,000
Closing Debtors 120,000
Provision on Doubtful debt @ 5% (Closing) 6,000
Debtors would be shown in balance sheet 114,000
Less: Provision for Discount on Debtors @ 4% 4,560
Net Debtors shown in balance sheet 109,440


Regards

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