1.

Following Trial Balance has been extracted from the books of Prasad on 31st March, 2019: ParticularsDr. (₹)ParticularsCr. (₹)Machinery4,00,000Capital9,00,000Cash at Bank1,00,000Sales16,00,000Cash in Hand50,000Sundry Creditors4,50,000Wages1,00,000Interest Received30,000Purchases8,00,000 Stock on 1st April, 20186,00,000 Sundry Debtors4,40,000 Bills Receivable2,90,000 Rent45,000 Commission25,000 General Expenses80,000 Salaries50,000 29,80,000 29,80,000 Additional Information:(i) Outstanding salaries were ₹ 45,000.(ii) Depreciate Machinery at 10%.(iii) Wages outstanding were ₹ 5,000.(iv) Rent prepaid ₹ 10,000.(v) Provide for interest on capital 5% per annum.(vi) Stock on 31st March, 2019 ₹ 8,00,000.Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date.

Answer»

Following Trial Balance has been extracted from the books of Prasad on 31st March, 2019:

Particulars
Dr. (₹)
Particulars
Cr. (₹)
Machinery
4,00,000
Capital
9,00,000
Cash at Bank
1,00,000
Sales
16,00,000
Cash in Hand
50,000
Sundry Creditors
4,50,000
Wages
1,00,000
Interest Received
30,000
Purchases
8,00,000
Stock on 1st April, 2018
6,00,000
Sundry Debtors
4,40,000
Bills Receivable
2,90,000
Rent
45,000
Commission
25,000
General Expenses
80,000
Salaries
50,000
29,80,000
29,80,000


Additional Information:

(i) Outstanding salaries were ₹ 45,000.

(ii) Depreciate Machinery at 10%.

(iii) Wages outstanding were ₹ 5,000.

(iv) Rent prepaid ₹ 10,000.

(v) Provide for interest on capital 5% per annum.

(vi) Stock on 31st March, 2019 ₹ 8,00,000.

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date.



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