The following balance were extracted from the books of modern traders on 31st march , 2012 :-
capital a/c 85,000
Drawings a/c 5,000
Plant and machinery 40,000
Stock on 1-4-201115,000
Purchases 82,000
Sundry Debtors 20,600
Furniture5,000
Freight Inward 2,000
Carriage outward 500
Rent , Rates and Taxes 4,600
Printing and Stationery 800
Sundry creditors 23,000
Sales1,20,000
Postage and Telegram 800
Bad- Debts 400
Provision for Doubtful Debts 800
Discount received 400
Rent Revenue 1,200
Insurance 700
Salaries 20,000
Wages 1,300
Cash in hand 6,200
Cash at bank25,500
Prepare final a/c for the year ended 31st march 2012 after taking into a/c the foolowing :
(1) stock on 31st march , 2012 was valued at rs 15,000
(2) goods costing rs 6,000 weresent to a customer on " sale on return basis " for rs 7,200 on 26th march ,2012 and had been recorded in the books as actual sales.
(3) provision for Doubtful debtsis to be mainatained at 5% of the debtors .
(4) prepaid insurance was rs100 .
(5) provide depreciation on plant and machinery @10% and on furniture @ 5%
Financial Statements of Modern Traders | |||||
Trading Account for the year ended March 31, 2012 | |||||
Dr. |
|
| Cr. | ||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | ||
Opening Stock | 15,000 | Sales | 1,20,000 |
| |
Purchases | 82,000 | Less: Goods sent on approval basis | (7,200) | 1,12,800 | |
Freight Inward | 2,000 | Closing Stock | 15,000 |
| |
Wages | 1,300 | Add: Goods sent on approval basis (cost) | 6,000 | 21,000 | |
Gross Profit (Balancing Figure) | 33,500 |
|
| ||
| 1,33,800 |
| 1,33,800 | ||
|
|
|
| ||
Profit and Loss Account for the year ended March 31, 2012 | ||||||
Dr. |
|
| Cr. | |||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |||
Depreciation on |
| Gross Profit | 33,500 | |||
Plant and Machinery | 4,000 |
| Rent Revenue | 1,200 | ||
Furniture | 250 | 4,250 | Discount Received | 400 | ||
Carriage Outwards | 500 |
|
| |||
Rent, Rates and Taxes | 4,600 |
|
| |||
Printing and Stationery | 800 |
|
| |||
Postage and Telegram | 800 |
|
| |||
Bad Debts | 400 |
|
|
| ||
Add: Provision for Bad Debts (New) | 670 |
|
|
| ||
Less: Existing Provision for Bad Debts | (800) | 270 |
|
| ||
Insurance | 700 |
|
|
| ||
Less: Prepaid Insurance | (100) | 600 |
|
| ||
Salaries | 20,000 |
|
| |||
Net Profit (Balancing Figure) | 3,280 |
|
| |||
| 35,100 |
| 35,100 | |||
|
|
|
| |||
Balance Sheet as on March 31, 2012 | |||||
Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
Capital | 85,000 |
| Fixed Assets |
| |
Less: Drawings | (5,000) |
| Plant and Machinery | 40,000 |
|
Add: Net Profit | 3,280 | 83,280 | Less: Depreciation @ 10% | (4,000) | 36,000 |
Current Liabilities |
| Furniture | 5,000 |
| |
Sundry Creditors | 23,000 | Less: Depreciation @ 5% | (250) | 4,750 | |
|
| Current Assets |
| ||
|
| Closing Stock | 21,000 | ||
|
| Debtors | 20,600 |
| |
|
| Less: Goods sent on approval basis | (7,200) |
| |
|
|
| 13,400 |
| |
|
| Less: Provision for Discount on Debtors @ 5% | (670) | 12,730 | |
|
| Prepaid Insurance | 100 | ||
|
| Cash in Hand | 6,200 | ||
|
| Cash at Bank | 25,500 | ||
| 1,06,280 |
| 1,06,280 | ||
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