From the following Trial Balance of Kamlesh and Maharajan and
given adjustments, prepare a Trading Account, Profit and Loss account for the
year ended 31st March, 2007 and a Balance Sheet as on that
date.
(20)
Dr.
Trial Balance as on 31st March
2007
Cr.
|
Particulars
|
Amt.
(`.)
|
Particulars
|
Amt.
(`.)
|
|
Opening
Stock
|
45,000
|
Capital
A/c
|
|
|
Purchases
|
2,25,000
|
Kamlesh
|
25,000
|
|
Plant
and Machinery
|
75,000
|
Mahajan
|
20,000
|
|
Carriage
|
16,800
|
Sales
|
4,50,000
|
|
Factory
Rent
|
1,500
|
Discount
Received
|
750
|
|
Insurance
|
1,050
|
Sundry
Creditors
|
15,000
|
|
Sundry
Debtors
|
60,000
|
Bad
debts Reserve
|
200
|
|
Office
Rent
|
3,000
|
Bills
Payable
|
2,000
|
|
Printing
& Stationery
|
600
|
||
|
Advertisement
|
15,000
|
||
|
Bills
Receivable
|
3,000
|
||
|
Drawings: Kamlesh
|
3,500
|
||
|
Mahajan
|
2,500
|
||
|
Salaries
|
18,000
|
||
|
Wages
|
20,000
|
||
|
Furniture
|
7,500
|
||
|
Royalty
|
1,000
|
||
|
Cash
at Bank
|
14,500
|
||
|
5,12,950
|
5,12,950
|
The following adjustment are required:
(1) Closing stock was valued at Cost
price `. 35,000 and Market Price 40,000.
(2) Plant– Machinery & Furniture
are to be depreciated at 6% & 10% p.a respectively.
(3) Maintain Reserve for Doubtful
Debts @ 2 ½ % on Sundry Debtors.
(4) Outstanding Expenses:
Factory Rent `. 300; Office Rent `. 600.
(5) Interest on capital to be allowed
at 6% p.a.
(6) Prepaid insurance was `. 100.
Trading Account for the year ended 31-3-2007
|
Particulars
|
`.
|
`.
|
Particulars
|
`.
|
`.
|
|
To Opening Stock
To Purchases
To Carriage
To Factory Rent
Add: Outstanding
To Wages
To Royalty
To Gross Profit c/d
|
1,500
300
|
45,000
2,25,000
16,800
1,800
20,000
1,000
1,75,400
|
By Sales
By Closing Stock
|
4,50,000
35,000
|
|
|
4,85,000
|
4,85,000
|
Profit and Loss A/c for the year ended 31-3-2007
|
Particulars
|
`.
|
`.
|
Particulars
|
`.
|
`.
|
|
To Insurance
Less: Prepaid
To Office Rent
Add: Outstanding
To Printing &
Stationery
To Advertisement
To Salaries
To Bad Debts
Add: New Bad Debts
Add: New R.D.D.
Less: Old R.D.D.
To Depreciation
Plant &
Machinery
Furniture
To Interest on
Capital
Kamlesh
Mahajan
To Net Profit
Kamlesh
Mahajan
|
1,050
100
3,000
600
-
-
-
1,500
1,500
200
4,500
750
1,500
1,200
64,375
64,375
|
950
3,600
600
15,000
18,000
1,300
5,250
2,700
1,28,750
|
By Gross Profit b/d
By Discount
Received
|
1,75,400
750
|
|
|
1,76,150
|
1,76,150
|
Balance Sheet as on 31-3-2007
|
Liabilities
|
`.
|
`.
|
Assets
|
`.
|
`.
|
|
Capital
Kamlesh
Mahajan
Sundry Creditors
Bills Payable
Outstanding
Expenses
Factory Rent
Office Rent
|
87,375
83,075
300
600
|
1,70,450
15,000
2,000
900
|
Plant &
Machinery
Less: Depreciation
Sundry Debtors
Less: New R.D.D.
Bills Receivable
Furniture
Less: Depreciation
Cash at Bank
Closing Stock
Prepaid Insurance
|
75,000
4,500
60,000
1,500
7,500
750
|
70,500
58,500
3,000
6,750
14,500
35,000
100
|
|
1,88,350
|
1,88,350
|
Partner’s Capital A/c
|
Particulars
|
Kamlesh
|
Mahajan
|
Particulars
|
Kamlesh
|
Mahajan
|
|
To Drawings
To Balance c/d
|
3,500
87,375
|
2,500
83,075
|
By Balance b/d
By Interest on
Capital
By Net Profit b/d
|
25,000
1,500
64,375
|
20,000
1,200
64,375
|
|
90,875
|
85,575
|
90,875
|
85,575
|
