The following balances have been extracted from the books of M/s Green

1.	The following balances have been extracted from the books of M/s Green House for the years ended December 31, 2010, prepare trading and profit and loss account and balance sheet as on this date. Account TitleAmt. (Rs)Account TitleAmt. (Rs)Purchases80,000Capital2,10,000Bank Balance11,000Bills Payable6,500Wages34,000Sales2,00,000Debtors70,300Creditors50,000Cash in Hand1,200Return Outwards4,000Legal Expenses4,000Building60,000Machinery1,20,000Bills Receivable7,000Office Expenses3,000Opening Stock45,000Gas and Fuel2,700Freight and Carriage3,500Factory Lighting5,000Office Furniture5,000Patent Right18,800¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,70,500––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,70,500–––––––––––––––––––– Adjustments (a) Machinery is depreciated 10% and buildings depreciated 6%. (b) Interest on capital 4%. (c) Outstanding wages Rs. 50. (d) Closing stock Rs. 50,000.
Answer» The following balances have been extracted from the books of M/s Green House for the years ended December 31, 2010, prepare trading and profit and loss account and balance sheet as on this date. $\begin{matrix} Account Title & Amt. (Rs) & Account Title & Amt. (Rs) Purchases & 80, 000 & Capital & 2, 10, 000 Bank Balance & 11, 000 & Bills Payable & 6, 500 Wages & 34, 000 & Sales & 2, 00, 000 Debtors & 70, 300 & Creditors & 50, 000 Cash in Hand & 1, 200 & Return Outwards & 4, 000 Legal Expenses & 4, 000 Building & 60, 000 Machinery & 1, 20, 000 Bills Receivable & 7, 000 Office Expenses & 3, 000 Opening Stock & 45, 000 Gas and Fuel & 2, 700 Freight and Carriage & 3, 500 Factory Lighting & 5, 000 Office Furniture & 5, 000 Patent Right & 18, 800 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 70, 500 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 70, 500 - -------- - - -------- - \end{matrix}$ Adjustments (a) Machinery is depreciated 10 $%$ and buildings depreciated 6 $%$ . (b) Interest on capital 4 $%$ . (c) Outstanding wages Rs. 50. (d) Closing stock Rs. 50,000.

The following balances have been extracted from the books of M/s Green House for the years ended December 31, 2010, prepare trading and profit and loss account and balance sheet as on this date. Account TitleAmt. (Rs)Account TitleAmt. (Rs)Purchases80,000Capital2,10,000Bank Balance11,000Bills Payable6,500Wages34,000Sales2,00,000Debtors70,300Creditors50,000Cash in Hand1,200Return Outwards4,000Legal Expenses4,000Building60,000Machinery1,20,000Bills Receivable7,000Office Expenses3,000Opening Stock45,000Gas and Fuel2,700Freight and Carriage3,500Factory Lighting5,000Office Furniture5,000Patent Right18,800¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,70,500––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,70,500–––––––––––––––––––– Adjustments (a) Machinery is depreciated 10% and buildings depreciated 6%. (b) Interest on capital 4%. (c) Outstanding wages Rs. 50. (d) Closing stock Rs. 50,000.

Answer»

The following balances have been extracted from the books of M/s Green House for the years ended December 31, 2010, prepare trading and profit and loss account and balance sheet as on this date.

$\begin{matrix} Account Title & Amt. (Rs) & Account Title & Amt. (Rs) Purchases & 80, 000 & Capital & 2, 10, 000 Bank Balance & 11, 000 & Bills Payable & 6, 500 Wages & 34, 000 & Sales & 2, 00, 000 Debtors & 70, 300 & Creditors & 50, 000 Cash in Hand & 1, 200 & Return Outwards & 4, 000 Legal Expenses & 4, 000 Building & 60, 000 Machinery & 1, 20, 000 Bills Receivable & 7, 000 Office Expenses & 3, 000 Opening Stock & 45, 000 Gas and Fuel & 2, 700 Freight and Carriage & 3, 500 Factory Lighting & 5, 000 Office Furniture & 5, 000 Patent Right & 18, 800 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 70, 500 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 70, 500 - -------- - - -------- - \end{matrix}$

Adjustments

(a) Machinery is depreciated 10 $%$ and buildings depreciated 6 $%$ .

(b) Interest on capital 4 $%$ .

(d) Closing stock Rs. 50,000.

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