Trial Balance as on 31 st March, 2006 [September 2008]
|
Debit Balance
|
Amount
Rs.
|
Credit Balance
|
Amount
Rs.
|
|
Stock on
1-4-2005
Purchases
Drawings
: Premlal
Sundarlal
Sales
Return
Wages
:Productive
Unproductive
Salaries
Rent,
Rates and Insurance
Bad Debts
Discount
allowed
Machinery
Building
Sundry
Debtors
Cash
|
90,000
2,25,000
33,000
30,000
7,200
10,500
1,800
18,600
10,200
1,200
3,900
45,000
1,08,600
1,53,000
3,000
|
Sales
Purchase
Returns
Discount
received
Sundry
Creditors
Capital :
Premlal
Sundarlal
Bank
Overdraft
|
3,75,000
3,000
3,000
90,000
1,05,000
1,35,000
30,000
|
|
7,41,000
|
7,41,000
|
1. Closing
stock was valued on 31-03-2006 at market price Rs. 60,000 which was 20% above
its cost price.
2. Outstanding
productive wages Rs. 600.
3. Rent, Rates
and Insurance include Insurance Rs. 1,600 paid for one year ending on 30th June,
2006.
4. Maintain
Reserve for doubtful debts at 5% on debtors.
5. Depreciate
building by 5% and machinery at 10% p.a.
6. Goods
costing Rs. 2500 were distributed as free samples for which no record has been
made in the books.
7. Six months
interest is due on Bank Overdraft at 10% p.a.
Solution:
In the books
of M/s Premlal & Sundarlal
Trading Account
for the year ended 31.03.2006
|
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
|
To Opening Stock
|
|
90000
|
By Sales
|
375000
|
|
|
To Purchases
|
225000
|
|
(-) Return
|
-7200
|
367800
|
|
(-) Returns
|
-3000
|
222000
|
By Goods Distributed as Free Samples
|
|
2500
|
|
To Production Wages
|
10500
|
|
By Closing Stock
|
|
50000
|
|
(+) Outstanding
|
600
|
11100
|
|
|
|
|
To Gross Profit C/d
|
|
97200
|
|
|
|
|
|
|
420300
|
|
|
420300
|
Profit and Loss Account for the year
ended 31.03.2006
|
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
|
To Unproductive Wages
|
|
1800
|
By Gross Profit b/d
|
|
97200
|
|
To Salaries
|
|
18600
|
By Discount Received
|
|
3000
|
|
To Rent, Rates and Insurance
|
10200
|
|
|
|
|
|
(-) Prepaid
|
-400
|
9800
|
|
|
|
|
To Bad Debts
|
1200
|
|
|
|
|
|
(+) F.B.D.
|
-
|
|
|
|
|
|
(+) N.R,D.D.
|
7650
|
|
|
|
|
|
(-) O.R.D.D.
|
-
|
8850
|
|
|
|
|
To Discount allowed
|
|
3900
|
|
|
|
|
To Depreciation
|
|
|
|
|
|
|
Building
|
5430
|
|
|
|
|
|
Machinery
|
4500
|
9930
|
|
|
|
|
To Advertisement
|
|
2500
|
|
|
|
|
To interest due on Bank Overdraft
|
|
1500
|
|
|
|
|
To Net Profit C/d
|
|
|
|
|
|
|
Premlal
|
21660
|
|
|
|
|
|
Sunderlal
|
21660
|
43320
|
|
|
|
|
|
|
100200
|
|
|
100200
|
Partners Capital Account
|
Particulars
|
Premlal
|
Sunderlal
|
Particulars
|
Premlal
|
Sunderlal
|
|
To Drawings
|
33000
|
30000
|
By Balance b/d
|
105000
|
135000
|
|
To Balance c/d
|
93660
|
126660
|
By Net Profit b/d
|
21410
|
21410
|
|
|
|
|
|
|
|
|
|
126410
|
156410
|
|
126410
|
156410
|
Balance Sheet as on 31.12.2006
|
Liability
|
Amt.
|
Amt.
|
Assets
|
Amt.
|
Amt.
|
|
Capital A/c
|
|
|
Machinery
|
45000
|
|
|
Premlal
|
126660
|
|
(-) Depreciation
|
-4500
|
40500
|
|
Sundarlal
|
93660
|
220320
|
Building
|
108600
|
|
|
Sundry Creditors
|
|
90000
|
(-) Depreciation
|
-5430
|
103170
|
|
Bank Overdraft
|
30000
|
|
Sundry Debtors
|
153000
|
|
|
(+) Interest due
|
1500
|
31500
|
(-) N.R.D.D.
|
7650
|
145350
|
|
Outstanding Productive Wages
|
|
600
|
Cash
|
|
3000
|
|
|
|
|
Closing Stock
|
|
50000
|
|
|
|
|
Prepaid Insurance
|
|
400
|
|
|
|
|
|
|
|
|
|
|
342420
|
|
|
342420
|
