From the following Trial Balance of M/s XYZ Traders, Prepare the
financial statements for the year ending 31 st March, 2020:
S.No
.
Names of the Accounts Debit(Rs. ) Credit(Rs. )
1 Capital & Drawings 23,500 3,40,000
2 Sales & Purchases 2,11,000 7,90,500
3 Discount 14,000 9,000
4 9% Investments(purchased on 1 st
August,2019)

80,000
5 Wages & Salaries 1,19,000
6 Rent & rates 65,500
7 Plant & Machinery 3,00,000
8 Furniture & Fixtures 85,000
9 Taxes & Insurance 94,000
10 12% Loan from Bank 2,50,000
11 Commission 1,08,000
12 Interest on Loan 3,000
13 Power & Fuel 32,000
14 Printing & Stationery 14,600
15 Stores Consumed 21,000
16 Returns 19,500 6,000
17 Bills Receivables & Bills Payables 55,000 43,000
18 Stock on 1 st April,2019 45,000
19 Loose Tools 23,500
20 Outstanding for Stationery 7,000
21 Bad Debts & Provision for Bad
Debts

8,000 9,000
22 Creditors & Debtors 2,26,000 1,53,100
23 Office Equipment 55,000

24 Cash in hand & at Bank 1,55,000
25 Advertisement Expenses 66,000
Total 17,15,600 17,15,600
Additional Information:
a) Depreciate all fixed assets @10% p.a & loose tools were valued at
Rs. 15,000.
b) Charge 30% of wages & salaries to the Trading Account.
c) Salaries for the months of February & March, 2020 were yet to be
paid.
d) Insurance includes an annual insurance premium of Rs. 9,600 which
was paid on 1 st September,2019.
e) Bad debts written off Rs. 6,000 & provision for bad & doubtful
debts to be created @ 5%.
f) A new machine was bought for Rs. 87,000 on 1 st October, 2019 &
wages paid Rs. 13,000 on its installation were debited to wages a/c.
g) Commission has been received for 2 ½ years.
h) Stock on 31 st March, 2020 was Rs. 1,19,000.
i) On 22 nd March, 2019 goods worth Rs. 20,000 were lost due to fire &
Insurance Company admitted claim to the extent of 65%.

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• 1 Introduction to Accounting
• 2 Bank Reconciliation Statement
• 3 Financial Statements I
• 4 Application of Computers in Accounting
• 5 Basic Accounting Terms
• 6 Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards (IFRS)
• 7 Bases of Accounting
• 8 Accounting Equation
• 9 Accounting Procedures - Rules of Debit and Credit
• 10 Origin of Transactions - Source Documents and Preparation of Vouchers
• 11 Journal
• 12 Ledger
• 13 Special Purpose Books I - Cash Book
• 14 Special Purpose Books II - Other Books
• 15 Trial Balance
• 16 Depreciation
• 17 Provisions and Reserves
• 18 Accounting for Bills of Exchange
• 19 Rectification of Errors
• 20 Financial Statements of Sole Proprietorship
• 21 Adjustments in Preparation of Financial Statements
• 22 Accounts from Incomplete Records - Single Entry System