Plz solve ques 7
Dear Student
Regards
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