Example -6 The
following are the trial balance of S. Paneru Trading concern:
Debit Balance
|
Rs.
|
Credit balance
|
Rs.
|
Land
and building
|
2,00,000
|
10%
bank loan
|
1,20,000
|
Plant
and machinery
|
1,50,000
|
Sales
|
5,29,000
|
Furniture
|
50,000
|
Interest
on investment
|
4,000
|
Stock
|
55,000
|
Creditors
|
1,04,000
|
10%
investment
|
70,000
|
Bad
debt recovered
|
4,500
|
Selling
expenses
|
11,800
|
Discount
received
|
1,600
|
Bad
debt
|
5,000
|
Capital
|
5,01,000
|
Discount
|
9,500
|
Purchase
return
|
4,000
|
Salary
|
13,200
|
||
Debtor
|
1,15,000
|
||
Cash
and bank
|
30,000
|
||
Drawings
|
9,000
|
||
Purchase
|
5,26,000
|
||
Wages
|
5,000
|
||
Carriage
outward
|
5,000
|
||
Carriage
inward
|
7,000
|
||
Rent
and insurance
|
6,600
|
||
Total
|
12,68,100
|
Total
|
12,68,100
|
b. Write off further bad
debt Rs. 15,000.
c. Create provision for bad
debt 15%.
d. Appreciate land and
building by 12%.
e. Depreciate plant and machine
@ 9%.
f. Outstanding carriage inward
Rs. l,000
g.
Cash Rs. 500 is taken over by owner for personal use as
well as goods –worth Rs. l,000
Required: a) Trading account b) Profit and Loss Account c) Balance Sheet as at the end of Chaitra 31, 2072
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