The following is the trial balance of Ram Krishan Vyas on 31st March, 2016. Name of AccountsAmt.(Rs.)Name of AccountsAmt(Rs.)Plant and Machinery19,720Capital80,000Manufacturing Wages34,965Creditors50,160Salaries10,135Bank Loan10,000Furniture9,480Purchases Return1,140Freight on purchase1,980Sales 2,46,850Freight on Sales2,150Provision for Bad Debts6,000Building25,000Manufacturing Expenses9,455Fuel and power1,276Electricity (Factory)986Insurance and Taxes4,175Goodwill30,000Rent2,400Debtors78,140Stable Expenses2,473Opening Stock34,170Horses and Carts5,165Purchases97,165Sales Return3,170General Expenses8,000Bad Debts1,485Interest and Bank Charges475Advertising4,500Bank Balance7,540Cash145 –––––– ––––––3,94,1503,94,150 –––––– –––––– Prepare trading and profit and loss account and balance sheet after making the following adustments. (i) Value of closing stock Rs. 29,638. (ii) Depreciate plant and machinery 10% furniture 5% and horses and carts by Rs. 1,000 also write off goodwill by Rs. 3,000. (iii) Provide 5% for doubtful debts on debtors. (iv) Prepaid expenses: Insurance Rs. 300 and taxes Rs. 190. (v) 35th of insurance and taxes, rent and general expenses to be charged to factory and the balance to the office. (vi) Adverstising is to be written off over 3 years. (vii) Commission to manager 10% on net profit after changing such commission.

The following is the trial balance of Ram Krishan Vyas on 31st March,

1.	The following is the trial balance of Ram Krishan Vyas on 31st March, 2016. Name of AccountsAmt.(Rs.)Name of AccountsAmt(Rs.)Plant and Machinery19,720Capital80,000Manufacturing Wages34,965Creditors50,160Salaries10,135Bank Loan10,000Furniture9,480Purchases Return1,140Freight on purchase1,980Sales 2,46,850Freight on Sales2,150Provision for Bad Debts6,000Building25,000Manufacturing Expenses9,455Fuel and power1,276Electricity (Factory)986Insurance and Taxes4,175Goodwill30,000Rent2,400Debtors78,140Stable Expenses2,473Opening Stock34,170Horses and Carts5,165Purchases97,165Sales Return3,170General Expenses8,000Bad Debts1,485Interest and Bank Charges475Advertising4,500Bank Balance7,540Cash145 –––––– ––––––3,94,1503,94,150 –––––– –––––– Prepare trading and profit and loss account and balance sheet after making the following adustments. (i) Value of closing stock Rs. 29,638. (ii) Depreciate plant and machinery 10% furniture 5% and horses and carts by Rs. 1,000 also write off goodwill by Rs. 3,000. (iii) Provide 5% for doubtful debts on debtors. (iv) Prepaid expenses: Insurance Rs. 300 and taxes Rs. 190. (v) 35th of insurance and taxes, rent and general expenses to be charged to factory and the balance to the office. (vi) Adverstising is to be written off over 3 years. (vii) Commission to manager 10% on net profit after changing such commission.
Answer» The following is the trial balance of Ram Krishan Vyas on 31st March, 2016. $\begin{matrix} Name of Accounts & Amt.(Rs.) & Name of Accounts & Amt(Rs.) Plant and Machinery & 19, 720 & Capital & 80, 000 Manufacturing Wages & 34, 965 & Creditors & 50, 160 Salaries & 10,135 & Bank Loan & 10, 000 Furniture & 9, 480 & Purchases Return & 1, 140 Freight on purchase & 1, 980 & Sales & 2, 46, 850 Freight on Sales & 2, 150 & Provision for Bad Debts & 6, 000 Building & 25, 000 Manufacturing Expenses & 9, 455 Fuel and power & 1, 276 Electricity (Factory) & 986 Insurance and Taxes & 4, 175 Goodwill & 30, 000 Rent & 2, 400 Debtors & 78, 140 Stable Expenses & 2, 473 Opening Stock & 34, 170 Horses and Carts & 5, 165 Purchases & 97, 165 Sales Return & 3, 170 General Expenses & 8, 000 Bad Debts & 1, 485 Interest and Bank Charges & 475 Advertising & 4, 500 Bank Balance & 7, 540 Cash & 145 - ---- - & - ---- - 3, 94, 150 & 3, 94, 150 - ---- - & - ---- - \end{matrix}$ Prepare trading and profit and loss account and balance sheet after making the following adustments. (i) Value of closing stock Rs. 29,638. (ii) Depreciate plant and machinery 10% furniture 5% and horses and carts by Rs. 1,000 also write off goodwill by Rs. 3,000. (iii) Provide 5% for doubtful debts on debtors. (iv) Prepaid expenses: Insurance Rs. 300 and taxes Rs. 190. (v) $\frac{3}{5} t h$ of insurance and taxes, rent and general expenses to be charged to factory and the balance to the office. (vi) Adverstising is to be written off over 3 years. (vii) Commission to manager 10% on net profit after changing such commission.

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