From the following information prepare trading and profit and loss acc

1.	From the following information prepare trading and profit and loss account of M/s Indian sports house for the year ending December 31, 2011. Account TitleAmt.(Rs)Account TitleAmt.(Rs)Drawings20,000Capital2,00,000Sundry Debtors80,000Return Outwards2,000Bad Debts1,000Bank Overdraft12,000Trade Expenses2,400Provision for Bad Debts4,000Printing and Stationery2,000Sundry Creditors60,000Rent, Rates and Taxes5,000Bills Payable15,400Freight4,000Sales2,76,000Return Inwards7,000Opening Stock25,000Purchase1,80,000Furniture and Fixture20,000Plant and Machinery1,00,000Bills Receivable14,000Wages10,000Cash in Hand6,000Discount Allowed2,000Investments40,000Motor Car51,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯5,69,400––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯5,69,400–––––––––––––––––––– Adjustments 1. Closing stock was Rs. 45,000. 2. Provision for bad debts is to be maintained 2% on debtors. 3. Depreciation charged on: furniture and fixture 5%, plant and machinery 6% and motor car 10%. 4. A machine of Rs 30,000 was purchased on July 1, 2011. 5. The manager is entitled to a commission of 10% of the net profit after charging such commission.
Answer» From the following information prepare trading and profit and loss account of M/s Indian sports house for the year ending December 31, 2011. $\begin{matrix} Account Title & Amt.(Rs) & Account Title & Amt.(Rs) Drawings & 20, 000 & Capital & 2, 00, 000 Sundry Debtors & 80, 000 & Return Outwards & 2, 000 Bad Debts & 1, 000 & Bank Overdraft & 12, 000 Trade Expenses & 2, 400 & Provision for Bad Debts & 4, 000 Printing and Stationery & 2, 000 & Sundry Creditors & 60, 000 Rent, Rates and Taxes & 5, 000 & Bills Payable & 15, 400 Freight & 4, 000 & Sales & 2, 76, 000 Return Inwards & 7, 000 Opening Stock & 25, 000 Purchase & 1, 80, 000 Furniture and Fixture & 20, 000 Plant and Machinery & 1, 00, 000 Bills Receivable & 14, 000 Wages & 10, 000 Cash in Hand & 6, 000 Discount Allowed & 2, 000 Investments & 40, 000 Motor Car & 51, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 5, 69, 400 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 5, 69, 400 - -------- - - -------- - \end{matrix}$ Adjustments 1. Closing stock was Rs. 45,000. 2. Provision for bad debts is to be maintained 2% on debtors. 3. Depreciation charged on: furniture and fixture 5%, plant and machinery 6% and motor car 10%. 4. A machine of Rs 30,000 was purchased on July 1, 2011. 5. The manager is entitled to a commission of 10% of the net profit after charging such commission.

From the following information prepare trading and profit and loss account of M/s Indian sports house for the year ending December 31, 2011. Account TitleAmt.(Rs)Account TitleAmt.(Rs)Drawings20,000Capital2,00,000Sundry Debtors80,000Return Outwards2,000Bad Debts1,000Bank Overdraft12,000Trade Expenses2,400Provision for Bad Debts4,000Printing and Stationery2,000Sundry Creditors60,000Rent, Rates and Taxes5,000Bills Payable15,400Freight4,000Sales2,76,000Return Inwards7,000Opening Stock25,000Purchase1,80,000Furniture and Fixture20,000Plant and Machinery1,00,000Bills Receivable14,000Wages10,000Cash in Hand6,000Discount Allowed2,000Investments40,000Motor Car51,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯5,69,400––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯5,69,400–––––––––––––––––––– Adjustments 1. Closing stock was Rs. 45,000. 2. Provision for bad debts is to be maintained 2% on debtors. 3. Depreciation charged on: furniture and fixture 5%, plant and machinery 6% and motor car 10%. 4. A machine of Rs 30,000 was purchased on July 1, 2011. 5. The manager is entitled to a commission of 10% of the net profit after charging such commission.

Answer»

From the following information prepare trading and profit and loss account of M/s Indian sports house for the year ending December 31, 2011.

$\begin{matrix} Account Title & Amt.(Rs) & Account Title & Amt.(Rs) Drawings & 20, 000 & Capital & 2, 00, 000 Sundry Debtors & 80, 000 & Return Outwards & 2, 000 Bad Debts & 1, 000 & Bank Overdraft & 12, 000 Trade Expenses & 2, 400 & Provision for Bad Debts & 4, 000 Printing and Stationery & 2, 000 & Sundry Creditors & 60, 000 Rent, Rates and Taxes & 5, 000 & Bills Payable & 15, 400 Freight & 4, 000 & Sales & 2, 76, 000 Return Inwards & 7, 000 Opening Stock & 25, 000 Purchase & 1, 80, 000 Furniture and Fixture & 20, 000 Plant and Machinery & 1, 00, 000 Bills Receivable & 14, 000 Wages & 10, 000 Cash in Hand & 6, 000 Discount Allowed & 2, 000 Investments & 40, 000 Motor Car & 51, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 5, 69, 400 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 5, 69, 400 - -------- - - -------- - \end{matrix}$

Adjustments

1. Closing stock was Rs. 45,000.

2. Provision for bad debts is to be maintained 2% on debtors.

3. Depreciation charged on: furniture and fixture 5%, plant and machinery 6% and motor car 10%.

4. A machine of Rs 30,000 was purchased on July 1, 2011.

5. The manager is entitled to a commission of 10% of the net profit after charging such commission.

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