On Mar 31,2009, the following Trial Balance has been extracted from the books of Shri
Gokhale.
Particulars Dr. Balance Cr. Balance
Rs. Rs.
Capital/Drawings 6,000 60,000
Sundry Debtors/Creditors 38,200 16,802
Purchases/Sales 1,34,916 2,22,486
Returns 15,642 2,692
Bills Recievable/Bills Payable 13,764 5,428
5% Loan on Mortgage (1,4,2008) -- 17,000
Intrest on loan 400 --
Cash in Hand 6,100 --
Stock (Apr 1,2008) 11,678 --
Motor Vehicle 18,000 --
Cash at Bank 9,110 --
Land and Buildings 24,000 --
Bad Debts 1,250 --
Carriage Outward 2,808 --
Bad Debt Provision -- 1,420
Discount -- 880
Carriage Inward 7,858 --
Establishment Expenses 16,194 --
Rates, Taxes and Insurance 7,782 --
Advertisement 4,528 --
General Expenses 8,978 --
Rent Recieved -- 500
Total - 3,27,208 3,27,208
Prepare Trading and Profit and loss Account for the year ended on Mar 31st , 2009 and a
Balance Sheet on that date after considering the following :
1. Depreciate land and Building @ 5% p.a. and motor vehicle @15% p.a.
2. Salaries Rs. 1,400 and rates Rs. 800 are due.
3. The Provision for doubtful debts is to be maintained @5% on sundry Debtors.
4. Stock in hand on Mar 31st ,2009 is valued at Rs. 12,500.
5. Goods costing Rs. 1,000 were taken by the proprietor for his personal use; no
entry has been made in the books of Accounts.
6. Prepaid Insurance Rs. 350
7. Provide for manager’s commission at 5% net profit after charging such
commission.
8. A fire broke out on Apr 1st ,2009 destroying goods worth Rs. 4,700.
9. Goods costing Rs. 1,200 were sent to a customer on sale or return for Rs. 1,400
on Mar 27, 2009 and have been recorded in the books as actual sales.
