Question number 31
Q.31. From the following Trial Balance of Sh. Parveen Kumar, prepare Trading and Profit & Loss Account for the year ending 31st March, 2019 and a Balance Sheet as at that date:
Dr. Balances
₹
Cr. Balances
₹
Stock at commencement
40,000
Sales
5,10,000
Purchases
3,20,000
Loan from Mr. Naresh @ 15% p.a.
40,000
Returns Inward
7,000
Returns Outwards
8,000
Sundry Debtors
80,000
Bank
24,200
Cash
9,400
Provision for Doubtful Debts
2,500
Manufacturing Expenses
44,000
Discount
1,800
Trade Expenses
7,200
Rent of Premises sublet, for the year to 30th Sept., 2019
4,000
Carriage
3,500
Salaries and Wages
15,800
Capital
1,20,000
Postage
1,500
Sundry Creditors
47,000
Stationery
800
Freight Inwards
4,300
Land and Building
2,00,000
Patents
8,000
Furniture
10,000
Insurance Premium
6,000
7,57,500
7,57,500
Informations:
(1) Closing Stock was valued at ₹60,000. You are informed that goods valued ₹12,000 were sold and despatched on 29th March, 2019, but no entry was passed to this effect.
(2) Insurance Premium include ₹1,200 paid on 1st October, 2018 to run for one year from Oct. 1, 2018 to Sept. 30, 2019.
(3) Loan from Mr. Naresh was taken on 1st July, 2018. Interest has not been paid so far.
(4) Create provision for doubtful debts at 5% on Sundry Debtors after writing off ₹600 as bad debts during the year.
(5) A bill of ₹3,200 for advertisement in newspaper remained unpaid at the end of the year.
(6) Purchases include furniture costing ₹5,000 purchased on 1st April, 2018.
(7) Charge 10% p.a. depreciation on furniture and write off th of patents.
|
Dr. Balances |
₹ |
Cr. Balances |
₹ |
|
Stock at commencement |
40,000 |
Sales |
5,10,000 |
|
Purchases |
3,20,000 |
Loan from Mr. Naresh @ 15% p.a. |
40,000 |
|
Returns Inward |
7,000 |
Returns Outwards |
8,000 |
|
Sundry Debtors |
80,000 |
Bank |
24,200 |
|
Cash |
9,400 |
Provision for Doubtful Debts |
2,500 |
|
Manufacturing Expenses |
44,000 |
Discount |
1,800 |
|
Trade Expenses |
7,200 |
Rent of Premises sublet, for the year to 30th Sept., 2019 |
4,000 |
|
Carriage |
3,500 |
||
|
Salaries and Wages |
15,800 |
Capital |
1,20,000 |
|
Postage |
1,500 |
Sundry Creditors |
47,000 |
|
Stationery |
800 |
|
|
|
Freight Inwards |
4,300 |
|
|
|
Land and Building |
2,00,000 |
|
|
|
Patents |
8,000 |
|
|
|
Furniture |
10,000 |
|
|
|
Insurance Premium |
6,000 |
|
|
|
|
7,57,500 |
|
7,57,500 |
|
|
|
|
|
(1) Closing Stock was valued at ₹60,000. You are informed that goods valued ₹12,000 were sold and despatched on 29th March, 2019, but no entry was passed to this effect.
(2) Insurance Premium include ₹1,200 paid on 1st October, 2018 to run for one year from Oct. 1, 2018 to Sept. 30, 2019.
(3) Loan from Mr. Naresh was taken on 1st July, 2018. Interest has not been paid so far.
(4) Create provision for doubtful debts at 5% on Sundry Debtors after writing off ₹600 as bad debts during the year.
(5) A bill of ₹3,200 for advertisement in newspaper remained unpaid at the end of the year.
(6) Purchases include furniture costing ₹5,000 purchased on 1st April, 2018.
(7) Charge 10% p.a. depreciation on furniture and write off th of patents.
| Trading Account | |||||||||||
| for the year ended March 31, 2019 | |||||||||||
| Particulars | Amount | Particulars | Amount | ||||||||
| (Rs) | (Rs) | ||||||||||
| Opening Stock | 40,000 | Sales | 5,10,000 | ||||||||
| Purchases | 3,20,000 | Less : Return Inwards | -7,000 | 5,03,000 | |||||||
| Less : Return Outwards | -8,000 | Closing Stock (60,000 – 12,000**) | 48,000 | ||||||||
| Less : Furniture | -5,000 | 3,07,000 | |||||||||
| Freight Inwards | 4,300 | ||||||||||
| Manufacturing Expenses | 44,000 | ||||||||||
| Gross Profit | 1,55,700 | ||||||||||
| 5,51,000 | 5,51,000 | ||||||||||
| Profit and Loss Account | |||||||||||
| for the year ended March 31, 2019 | |||||||||||
| Dr. | Cr. | ||||||||||
| Particulars | Amount | Particulars | Amount | ||||||||
| (Rs) | (Rs) | ||||||||||
| Depreciation on Furniture | 1,500 | Gross Profit | 1,55,700 | ||||||||
| Salaries and Wages | 15,800 | Discount Received | 1,800 | ||||||||
| Carriage | 3,500 | Rent of Premises- Sublet | 4,000 | ||||||||
| Postage and Telegrams | 1,500 | Less : Received in Advance | -2,000 | 2,000 | |||||||
| Stationery | 800 | ||||||||||
| Interest on Loan (40,000 × 15% × 9/12) | 4,500 | ||||||||||
| Bad Debts | 600 | ||||||||||
| Add : New Provision | 11,910 | ||||||||||
| Less : Old Provision | -2,500 | 10,010 | |||||||||
| Advertisement Expenses | 3,200 | ||||||||||
|
1,600 | ||||||||||
| Trade Expenses | 7,200 | ||||||||||
| Insurance Charges | 6,000 | ||||||||||
| Less : Prepaid Insurance | -600 | 5,400 | |||||||||
| Net Profit | 1,04,490 | ||||||||||
| 159500 | 159500 | ||||||||||
| Balance Sheet | |||||||||||
| as on March 31, 2019 | |||||||||||
| Liabilities | Amount | Assets | Amount | ||||||||
| (Rs) | (Rs) | ||||||||||
| Capital | 1,20,000 | Fixed Assets | |||||||||
| Add : Net Profit | 1,04,490 | 2,24,490 | Patents (8,000 – 1,600) | 6,400 | |||||||
| Loan from Mr Naresh @ 15% | 40,000 | Land and Building | 2,00,000 | ||||||||
| Add : Interest O/S | 4,500 | 44,500 | Furniture | 10,000 | |||||||
| Current Liabilities | Add : Purchased | 5,000 | |||||||||
| Bank OD | 24,200 | Less : Depreciation @10% | -1,500 | 13,500 | |||||||
| Sundry Creditors | 47,000 | Current Assets | |||||||||
| Advertisement Exp Outstanding | 3,200 | Closing Stock | 48,000 | ||||||||
| Rent received in Advance | 2,000 | Debtors | 80,000 | ||||||||
| Less:BadDebts | -600 | ||||||||||
| 79,400 | |||||||||||
| LESS:PROV. | -11,910 | 67,490 | |||||||||
| Cash in Hand | 9,400 | ||||||||||
| Prepaid Insurance | 600 | ||||||||||
| 3,45,390 | 3,45,390 | ||||||||||