Following balances have been extracted from the trial balance of M/s K

1.	Following balances have been extracted from the trial balance of M/s Keshav Electronics Ltd. You are required to prepare the trading and profit and loss account and a balance sheet as on December 31, 2011. Account TitleAmt.(Rs)Account TitleAmt.(Rs)Opening Stock2,26,000Sales6,80,000Purchase4,40,000Return Outwards15,000Drawings75,000Creditors50,000Buildings1,00,000Bills Payable63,700Motor van30,000Interest Received20,000Freight Inwards3,400Capital3,50,000Sales Return10,000Trade Expenses3,300Heat and Power8,000Salary and Wages5,000Legal Expenses3,000Postage and Telegram1,000Bad Debts6,500Cash in Hand79,000Cash at Bank98,000Sundry Debtors25,000Investments40,000Insurance3,500Machinery22,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯11,78,700––––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯11,78,700–––––––––––––––––––––– The following additional information is available 1. Stock on December 31, 2011 was Rs. 30,000. 2. Depreciation is to be charged on building 5% and motor van 10% 3. Provision for doubtful debts is to be maintained 5% on Sundry Debtors. 4. Unexpired insurance was Rs. 600. 5. The Manager is entitled to a commission 5% on net profit after charging such commissioion.
Answer» Following balances have been extracted from the trial balance of M/s Keshav Electronics Ltd. You are required to prepare the trading and profit and loss account and a balance sheet as on December 31, 2011. $\begin{matrix} Account Title & Amt.(Rs) & Account Title & Amt.(Rs) Opening Stock & 2, 26, 000 & Sales & 6, 80, 000 Purchase & 4, 40, 000 & Return Outwards & 15, 000 Drawings & 75, 000 & Creditors & 50, 000 Buildings & 1, 00, 000 & Bills Payable & 63, 700 Motor van & 30, 000 & Interest Received & 20, 000 Freight Inwards & 3, 400 & Capital & 3, 50, 000 Sales Return & 10, 000 Trade Expenses & 3, 300 Heat and Power & 8, 000 Salary and Wages & 5, 000 Legal Expenses & 3, 000 Postage and Telegram & 1, 000 Bad Debts & 6, 500 Cash in Hand & 79, 000 Cash at Bank & 98, 000 Sundry Debtors & 25, 000 Investments & 40, 000 Insurance & 3, 500 Machinery & 22, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 11, 78, 700 - --------- - - --------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 11, 78, 700 - --------- - - --------- - \end{matrix}$ The following additional information is available 1. Stock on December 31, 2011 was Rs. 30,000. 2. Depreciation is to be charged on building 5% and motor van 10% 3. Provision for doubtful debts is to be maintained 5% on Sundry Debtors. 4. Unexpired insurance was Rs. 600. 5. The Manager is entitled to a commission 5% on net profit after charging such commissioion.

Following balances have been extracted from the trial balance of M/s Keshav Electronics Ltd. You are required to prepare the trading and profit and loss account and a balance sheet as on December 31, 2011. Account TitleAmt.(Rs)Account TitleAmt.(Rs)Opening Stock2,26,000Sales6,80,000Purchase4,40,000Return Outwards15,000Drawings75,000Creditors50,000Buildings1,00,000Bills Payable63,700Motor van30,000Interest Received20,000Freight Inwards3,400Capital3,50,000Sales Return10,000Trade Expenses3,300Heat and Power8,000Salary and Wages5,000Legal Expenses3,000Postage and Telegram1,000Bad Debts6,500Cash in Hand79,000Cash at Bank98,000Sundry Debtors25,000Investments40,000Insurance3,500Machinery22,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯11,78,700––––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯11,78,700–––––––––––––––––––––– The following additional information is available 1. Stock on December 31, 2011 was Rs. 30,000. 2. Depreciation is to be charged on building 5% and motor van 10% 3. Provision for doubtful debts is to be maintained 5% on Sundry Debtors. 4. Unexpired insurance was Rs. 600. 5. The Manager is entitled to a commission 5% on net profit after charging such commissioion.

Answer»

Following balances have been extracted from the trial balance of M/s Keshav Electronics Ltd. You are required to prepare the trading and profit and loss account and a balance sheet as on December 31, 2011.

$\begin{matrix} Account Title & Amt.(Rs) & Account Title & Amt.(Rs) Opening Stock & 2, 26, 000 & Sales & 6, 80, 000 Purchase & 4, 40, 000 & Return Outwards & 15, 000 Drawings & 75, 000 & Creditors & 50, 000 Buildings & 1, 00, 000 & Bills Payable & 63, 700 Motor van & 30, 000 & Interest Received & 20, 000 Freight Inwards & 3, 400 & Capital & 3, 50, 000 Sales Return & 10, 000 Trade Expenses & 3, 300 Heat and Power & 8, 000 Salary and Wages & 5, 000 Legal Expenses & 3, 000 Postage and Telegram & 1, 000 Bad Debts & 6, 500 Cash in Hand & 79, 000 Cash at Bank & 98, 000 Sundry Debtors & 25, 000 Investments & 40, 000 Insurance & 3, 500 Machinery & 22, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 11, 78, 700 - --------- - - --------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 11, 78, 700 - --------- - - --------- - \end{matrix}$

The following additional information is available

1. Stock on December 31, 2011 was Rs. 30,000.

2. Depreciation is to be charged on building 5% and motor van 10%

3. Provision for doubtful debts is to be maintained 5% on Sundry Debtors.

4. Unexpired insurance was Rs. 600.

5. The Manager is entitled to a commission 5% on net profit after charging such commissioion.

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