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From the following Trial Balance of M/s.Mehta and Sons as on 31st March. 2016, prepare Trading and Profit and Loss Account and Balance Sheet.

Particulars

Rs. 

Particulars

Rs. 

Cash in Hand

50

Bank overdraft

2,850

Bank Balance

600

Creditors

2,500

Debtors

3,800

Capital

12,500

Bad debts

125

Provision for bad debts

200

Stock (opening)

3,460

Sales

15,450

Purchases

5,475

Purchase return

125

Sales return

200

Commission

375

Furniture and fittings

640

 

 

Motor vehicles

6,250

 

 

Buildings

7,500

 

 

Advertisement

450

 

 

Interest on bank overdraft

118

 

 

Taxes andinsurance

1,250

 

 

General expenses

782

 

 

Salaries

3,300

 

 

 

Adjustments:

 i. Stock in hand on 31-3-2016 Rs.5,750

 ii. Depreciate building @ 5%, furniture and fittings @ 10% and motor vehicles @20%.

 iii. Rs.85 is due for interest on bank overdraft.

 iv. Salaries Rs.300 and taxes Rs.120 are outstanding.

 v. One third of the commission received is in respect of work to be done next year.

 vi. Further Bad Debts Rs.100 and make provision for doubtful debts @10%

 

Asked by Topperlearning User 4th July 2016, 8:16 AM
Answered by Expert
Answer:

 Trading Account for the year ended 31st March, 2016

Dr.

Cr.

Particulars

 

Amount Rs. 

Particulars

 

Amount Rs. 

To Opening Stock

 

3,460

By Sales

15,450

 

To Purchases

5,475

 

Less : Return

200

15,250

Less : Return

125

5,350

By Closing Stock

 

5,750

 

 

 

 

 

 

To Gross Profit c/d

 

12,190

 

 

 

 

 

21,000

 

 

21,000

 

 

Profit and Loss Account for the year ended 31st March, 2016

Dr.

Cr.

Particulars

 

Amount Rs. 

Particulars

 

Amount Rs. 

To Bad Debts

125

 

By Gross Profit b/d

 

12,190

Add: Further Bad Debt

100

 

By Commission

375

 

Add: Provision for doubtful debts @10%

370

 

Less: 1/3rd Received in Advance

125

250

 

595

 

 

 

 

Less: Provision for Bad Debts

200

395

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To Advertisement

 

450

 

 

 

To Interest on Bank overdraft

118

 

 

Answered by Expert 4th July 2016, 10:16 AM
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