PREPARE TRADING AND PROFIT & LOSS ACCOUNT FROM THE TRIAL BALANCE GIVEN BELOW :
* MAKE ADJUSTMENTS ALSO ::
1. A FIRE OCCURED ON 4 APRIL AND DESTROYED GOODS VALUED 20000
2.CLOSING STOCK AT MARKET PRICE AS ON 31st march 2015 , rupees 75000 . however its cost was 66000 .
3. outstanding rent : 15000
4. write off bad - debts 56900
5. accrued commission is 7400 . CGST and SGST @ 6 % each
(experts please give the answers with same numbers which is provided in question don’t change the numbers and don’t provide any link.)
Dear student
working note:
1) Net purchases cannot be in negative but suspense account account is given in the question, so we can assume there is some mistake either in purchases or purchase return.and solve the question according to given information.
2) According to conservatism concept, we consider the closing stock Rs 66,000.
3) There will be no impact of output cgst and sgst on accured commission in profit and loss account. It will be shown in balance sheet.
Regards
working note:1) Net purchases cannot be in negative but suspense account account is given in the question, so we can assume there is some mistake either in purchases or purchase return.and solve the question according to given information.
2) According to conservatism concept, we consider the closing stock Rs 66,000.
3) There will be no impact of output cgst and sgst on accured commission in profit and loss account. It will be shown in balance sheet.
Regards