Example -7 The
trial balance and additional information of Shanta Concern Balaju for the year
ended 31st December, 2010 are given below:
Particular
|
Debit Rs.
|
Credit Rs.
|
Bank
balance
|
52,125
|
|
Debtors
& Creditors
|
1,24,500
|
68,000
|
Commission
|
12,500
|
|
Wages
|
10,000
|
|
Freight
|
6,250
|
|
Freight
on sales
|
6,000
|
|
General
expenses
|
3,800
|
|
opening
Stock
|
68,800
|
|
Purchase
and Sales
|
2,40,000
|
3,35,600
|
Salary
|
17,000
|
|
Computer
|
82,000
|
|
Building
|
1,00,000
|
|
Drawing
|
24,000
|
|
Capital
|
3,00,000
|
|
10%
loan
|
75,000
|
|
Interest
|
4,500
|
|
Bad
debts
|
2,000
|
|
Delivery
van
|
50,000
|
|
Total
|
791,000
|
791,000
|
Additional
Information:
a. Depreciate
computer & van @ 15% p.a. cash
b. Value
of Stock at the end Rs.78,000 (Cost price) and Rs.80,000 (Market price)
c. Bad
debts Rs.4500 and provision for doubtful debt @5%
d. Goods
worth Rs.12000 destroyed by fire and insurance company assured only Rs.10,000
e. Unearned
commission of Rs.5,500
f.
Outstanding salary of Rs.4,000
g. Wages
for the year only Rs.10,000
h. Appreciate
land & Building by 10% p.a.
Required: a) Trading account b) Profit and Loss Account c) Balance Sheet as at the end of Chaitra 31, 2074
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