Question

From the following Trial Balance of M/s. Shradha & Sons as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet.

(i) Closing Stock Rs. 64,000.
(ii) Wages outstanding Rs. 2,400.
(iii) Bad Debts Rs. 600.
(iv) Provision for Doubtful Debts to be 5%.
(v) Rent is paid for 11 months.
(vi) Insurance premium is paid per annum, ended 31st May, 2018.
(vii) Loan from the bank was taken on 1st October, 2017.
(viii) Provide Depreciation on machinery @ 10% and on Furniture @ 5%.

Answer 1

                      Balance Sheet as on March 31,2018

Comments

Good answers thank you for helping me

Answer 2

Financial statement of M/s. Shradha & Sons
Trading Account
for the year ended March 31, 2019

Particulars			Amount (Dr.)	Particulars	Amount (Cr.)
Opening Stock			42,000	Sales	1,55,000
Purchases		82,600
Less: Return Outwards		(1,600)	81,000
Carriages Inwards			1,200	Closing Stock	64,000
Wages		4,000
Add: Outstanding Wages		2,400	6,400
Power			6,000
Gross Profit (Balancing Figure)			82,400
			2,19,000		2,19,000

Profit and Loss Account
for the year ended March 31, 2019

Particulars		Amount (Dr.)	Particulars	Amount (Cr.)
Rent	22,000		Gross Profit	82,400
Add: Outstanding for One month (22,000/11)	2,000	24,000
Salary		15,000
Insurance	3,600
Less: Prepaid 2 month(3,600 × 2/12)	(600)	3,000
Outstanding Interest on Bank Loan (25,000 × 8% × 6/12)		1,000
Bad Debts	600
Add: Provision for Doubtful Debts	1,000	1,600
Depreciation on:
Machinery	5,000
Furniture	700	5,700
Net Profit (Balancing Figure)		32,100
		82,400		82,400

Answer 3

Balance Sheet
as on March 31, 2019

Liabilities		Amount (₹)	Assets		Amount (₹)
Capital	80,000		Fixed Assets
Add: Net Profit	32,100		Machinery	50,000
Less: Drawings	(18,000)	94,100	Less: 10% Depreciation	(500)	45,000
8% Bank Loan	25,000		Furniture	14,000
Add: Outstanding Interest	1,000	26,000	Less: 5% Deprecation	(700)	13,300
Current Liabilities			Current Assets
Creditors		18,900	Closing Stock		64,000
Wages Outstanding		2,400	Debtors	20,600
Rent Outstanding		2,000	Less: Bad Debts	(600)
			Less: 5% Provision for doubtful Debts	(1,000)	19,000
			Prepaid Insurance		600
			Cash in hand		1,500
		1,43,400			1,43,40