Question of final acccount for practice

Question of final acccount for practice - ascertained by...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Q) From the following extracts of Trial Balance as on 31/3/2003 and other additional information, prepare Profit and Loss Account and Balance Sheet. 40500 Bad Debt 2200 Furniture and Fittings 15250 Bad Debts Recovered 1250 Bank Overdraft 160000 Salaries 32650 Capital 115000 Salary Payable 5350 Drawings 15000 Prepaid Rent 500 Purchases 230500 Rent 6500 Opening Stock 132250 Carriage Inward 2350 Wages 22325 Carriage Outward 3250 Provisions for Doubtful Debts 5700 Sales 290600 Provision for Discount on Debtors 1375 Advertisement Expenses 6750 Sundry Debtors 152500 Printing & Stationery 2200 Sundry Creditors 77500 Cash in Hand 2300 Cash at Bank 7250 Additional Information: 1) Difference in the trial balance, if any, can be taken as miscellaneous expenses or income. 2) Bank overdraft is secured against hypothecation of stock. The Bank overdraft outstanding as on 31/3/2003 accounted for 80% of drawing power. Such power is
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ascertained by deducting 20% as margin from the value of stock as on that date. 3) Purchase include sales return of Rs.5500/- and sales include purchase returns of Rs. 4750/-. 4) Goods withdrawn by the owner for own consumption amounts Rs.7500/- included in purchases. 5) Wages paid for installation of plant and machinery amounting to Rs.750/- were included in wages account. 6) Depreciation is to be provided on plant and machinery @ 15% p.a. and on furniture and fittings @ 10% p.a. 7) Create a provision for doubtful debts @ 5% and provision for discount on debtors @2.5% . 8) A debit balance of Rs.2500/- in the account of Ram, a creditor is included in the list of sundry Creditors. 9) Free samples distributed for publicity costing Rs.1250/-...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online