From the following trail balance of M/s Arjun & Sons as 31st December,

1.	From the following trail balance of M/s Arjun & Sons as 31st December,2016 prepare trading and profit and loss account and balance sheet. Name of AccountsDebit BalanceCredit BalanceDrawings and Capital18,000 80,000Purchases and Sales82,6001,55,000Stock (1st January, 2016)42,000Return Outwards 1,600Carriage Inwards 1,200Wages 4,000Power 6,000Machinery50,000Furniture14,000Rent22,000Salary15,000Insurance 3,6008% Bank Loan 25,000Debtors20,600Creditors 18,900Cash in Hand 1,500¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,80,500–––––––––––––––––––– ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,80,500–––––––––––––––––––– Additional Information: (i) Closing stock Rs. 64,000. (ii) Wages outstanding Rs. 2,400 (iii) Bad debts Rs. 600 and provision for bad doubtful debts to be 5% on debtors. (iv) Rent is paid for 11 months. (v) Loan form the bank was taken on 1st July, 2016. (vi) Provide depreciation on machinery 10% per annum. (vii) Provide manager's commission at 10% on net profit after charging such commission.
Answer» From the following trail balance of M/s Arjun & Sons as 31st December,2016 prepare trading and profit and loss account and balance sheet. $\begin{matrix} Name of Accounts & Debit Balance & Credit Balance Drawings and Capital & 18, 000 & 80, 000 Purchases and Sales & 82, 600 & 1, 55, 000 Stock (1st January, 2016) & 42, 000 Return Outwards & 1, 600 Carriage Inwards & 1, 200 Wages & 4, 000 Power & 6, 000 Machinery & 50, 000 Furniture & 14, 000 Rent & 22, 000 Salary & 15, 000 Insurance & 3, 600 8 % Bank Loan & 25, 000 Debtors & 20, 600 Creditors & 18, 900 Cash in Hand & 1, 500 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 2, 80, 500 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 2, 80, 500 - -------- - - -------- - \end{matrix}$ Additional Information: (i) Closing stock Rs. 64,000. (ii) Wages outstanding Rs. 2,400 (iii) Bad debts Rs. 600 and provision for bad doubtful debts to be 5% on debtors. (iv) Rent is paid for 11 months. (v) Loan form the bank was taken on 1st July, 2016. (vi) Provide depreciation on machinery 10% per annum. (vii) Provide manager's commission at 10% on net profit after charging such commission.

From the following trail balance of M/s Arjun & Sons as 31st December,2016 prepare trading and profit and loss account and balance sheet. Name of AccountsDebit BalanceCredit BalanceDrawings and Capital18,000 80,000Purchases and Sales82,6001,55,000Stock (1st January, 2016)42,000Return Outwards 1,600Carriage Inwards 1,200Wages 4,000Power 6,000Machinery50,000Furniture14,000Rent22,000Salary15,000Insurance 3,6008% Bank Loan 25,000Debtors20,600Creditors 18,900Cash in Hand 1,500¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,80,500–––––––––––––––––––– ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,80,500–––––––––––––––––––– Additional Information: (i) Closing stock Rs. 64,000. (ii) Wages outstanding Rs. 2,400 (iii) Bad debts Rs. 600 and provision for bad doubtful debts to be 5% on debtors. (iv) Rent is paid for 11 months. (v) Loan form the bank was taken on 1st July, 2016. (vi) Provide depreciation on machinery 10% per annum. (vii) Provide manager's commission at 10% on net profit after charging such commission.

Answer»

From the following trail balance of M/s Arjun & Sons as 31st December,2016 prepare trading and profit and loss account and balance sheet.

$\begin{matrix} Name of Accounts & Debit Balance & Credit Balance Drawings and Capital & 18, 000 & 80, 000 Purchases and Sales & 82, 600 & 1, 55, 000 Stock (1st January, 2016) & 42, 000 Return Outwards & 1, 600 Carriage Inwards & 1, 200 Wages & 4, 000 Power & 6, 000 Machinery & 50, 000 Furniture & 14, 000 Rent & 22, 000 Salary & 15, 000 Insurance & 3, 600 8 % Bank Loan & 25, 000 Debtors & 20, 600 Creditors & 18, 900 Cash in Hand & 1, 500 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 2, 80, 500 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 2, 80, 500 - -------- - - -------- - \end{matrix}$

Additional Information:

(i) Closing stock Rs. 64,000.

(ii) Wages outstanding Rs. 2,400

(iii) Bad debts Rs. 600 and provision for bad doubtful debts to be 5% on debtors.

(iv) Rent is paid for 11 months.

(v) Loan form the bank was taken on 1st July, 2016.

(vi) Provide depreciation on machinery 10% per annum.

(vii) Provide manager's commission at 10% on net profit after charging such commission.

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