From the following Trial Balance of M/s Ghasiram Patiram, prepare Trading Account and Profit and Loss Account for the year ended 31st December 2009 and Balance Sheet as on that date:
On 31st December, cost of stock was Rs. 30,000. Charge depreciation on machinery @ 10%. Make reserve for Bad and Doubtful Debts @ 5% on debtors and charge interest on capital @ 6%. Salaries of Rs. 1,000 are prepaid.
Or
From the following information, prepare profit and loss account M/s Aajani & Brothers for the year ended 31st December, 2009: Debtors Rs. 50,000; Received Discount Rs. 750; Repair Rs. 200; Reserve for Doubtful Debts Rs. 1,025; Machinery Rs. 20,000; Cash Rs. 5,000; Deposit in Bank Rs. 1,000;
Advertisement:
(i) Bad Debts on Debtors Rs. 1,000; Reserve for Bad Debts @ 5%;
(ii) Interest on Capital and Drawing @ 6%;
(iii) Written off 1/5 of Advertisement;
(iv) Insurance Premium is prepaid for 3 months.
