1.

From the following Trial Balance of M/s Arjun and Sons as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet: Heads of Accounts Debit Balances (₹) Credit Balances (₹) Drawings ................................................................................ 1,80,000 … Capital ................................................................................ … 8,00,000 Purchases ................................................................................ 8,26,000 ... Sales ................................................................................ … 15,50,000 Opening Stock ................................................................................ 4,20,000 … Returns Outward ................................................................................ … 16,000 Carriage Inwards ................................................................................ 12,000 … Wages ................................................................................ 40,000 … Power ................................................................................ 60,000 … Machinery ................................................................................ 5,00,000 … Furniture ................................................................................ 1,40,000 … Rent ................................................................................ 2,20,000 … Salary ................................................................................ 1,50,000 … Insurance ................................................................................ 36,000 … 8% Bank Loan ................................................................................ … 2,50,000 Debtors ................................................................................ 2,06,000 … Creditors ................................................................................ … 1,89,000 Cash in Hand ................................................................................ 15,000 … Total 28,05,000 28,05,000 Adjustments:(i) Closing Stock ₹ 6,40,000.(ii) Wages Outstanding ₹ 24,000.(iii) Bad Debts ₹ 6,000 and Provision for Bad and Doubtful Debts to 5% on Debtors.(iv) Rent is paid for 11 months.(v) Loan from bank was taken on 1st October, 2017.(vi) Provide Depreciation on Machinery 10% p.a.(vii) Provide Manager’s Commission at 10% on net profit after charging such commission.

Answer» From the following Trial Balance of M/s Arjun and Sons as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet:



































































































































Heads of Accounts


Debit


Balances


(₹)


Credit


Balances


(₹)

Drawings ................................................................................
1,80,000



Capital ................................................................................


8,00,000

Purchases ................................................................................
8,26,000


...

Sales ................................................................................


15,50,000

Opening Stock ................................................................................
4,20,000



Returns Outward ................................................................................


16,000

Carriage Inwards ................................................................................
12,000



Wages ................................................................................
40,000



Power ................................................................................
60,000



Machinery ................................................................................
5,00,000



Furniture ................................................................................
1,40,000



Rent ................................................................................
2,20,000



Salary ................................................................................
1,50,000



Insurance ................................................................................
36,000



8% Bank Loan ................................................................................


2,50,000

Debtors ................................................................................
2,06,000



Creditors ................................................................................


1,89,000

Cash in Hand ................................................................................
15,000



Total
28,05,000


28,05,000




Adjustments:

(i) Closing Stock ₹ 6,40,000.

(ii) Wages Outstanding ₹ 24,000.

(iii) Bad Debts ₹ 6,000 and Provision for Bad and Doubtful Debts to 5% on Debtors.

(iv) Rent is paid for 11 months.

(v) Loan from bank was taken on 1st October, 2017.

(vi) Provide Depreciation on Machinery 10% p.a.

(vii) Provide Manager’s Commission at 10% on net profit after charging such commission.


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