From the following Trial Balance of Ram Narain as at 31st March, 2019, prepare Trading and Profit and Profit and Loss Account and Balance Sheet. Following further information was given : (i) Wages for March, 2019 amounting to Rs 2,100 have not yet been paid. (ii) General Expenses include Insurance Premium of Rs 600 paid in advance for the next year. (iii) Provision for Doubtful Debts @5%on Sundry Debtors is to be made. (iv) Depreciation is to be charged as follows: Land and Building @2% Mechinery @10% and Furniture and Fixtures @15%. (v) Loan from Mrs. Ram Narain was taken on 1st October, 2018. Interest has not yet been paid. (vi) Value of stock at hand on 31st March, 2019 was Rs14,900. (vii) Manager is entitled to a commission of 10% of the net profit after charging the commission.

From the following Trial Balance of Ram Narain as at 31st March, 2019,

1.	From the following Trial Balance of Ram Narain as at 31st March, 2019, prepare Trading and Profit and Profit and Loss Account and Balance Sheet. Following further information was given : (i) Wages for March, 2019 amounting to Rs 2,100 have not yet been paid. (ii) General Expenses include Insurance Premium of Rs 600 paid in advance for the next year. (iii) Provision for Doubtful Debts @5%on Sundry Debtors is to be made. (iv) Depreciation is to be charged as follows: Land and Building @2% Mechinery @10% and Furniture and Fixtures @15%. (v) Loan from Mrs. Ram Narain was taken on 1st October, 2018. Interest has not yet been paid. (vi) Value of stock at hand on 31st March, 2019 was Rs14,900. (vii) Manager is entitled to a commission of 10% of the net profit after charging the commission.
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> : <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_C19_S01_016_S01.png" width="80%"/> <br/>Working Notes : <br/> 1. Profit before charging <a href="https://interviewquestions.tuteehub.com/tag/commission-422814" style="font-weight:bold;" target="_blank" title="Click to know more about COMMISSION">COMMISSION</a> is `Rs31,000`. Commission payable @`<a href="https://interviewquestions.tuteehub.com/tag/10-261113" style="font-weight:bold;" target="_blank" title="Click to know more about 10">10</a>%` of net profit after charging such commission. Manager's Commission `="Net Profit" xx(%"of Commission ")/(100+%"of Commission")=Rs 31,000xx(10)/(110)=Rs2,818`. <br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_C19_S01_016_S02.png" width="80%"/></body></html>

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