Question 16 Marks
From the following trial balance, prepare the trading and profit and loss account for the year ended 31st March, 2013 and the balance sheet as at that date.
Additional Information
i. Closing stock Rs 12,000 .
ii. Goods costing Rs 2,000 were distributed as free samples while goods costing Rs 1,000 were taken by the proprietor for personal use.
iii. A credit sale of Rs 4,000 was not recorded in the sales book.
iv. Closing stock included goods costing Rs 2,000 which were sold and recorded as sales but not delivered to the customer.
v. Maintain provision for doubtful debts @ 5\%.
| Name of Accounts | Amt(Rs) | Name of Accounts | Amt(Rs) |
| Salaries | 20,446 | Sales | 1,32,840 |
| Bills receivable | 12,754 | Capital | 1,00,000 |
| Investments | 80,000 | Provision for doubtful debts | 5,000 |
| Furniture | 24,000 | 10% Loan (1st October, 2012) | 20,000 |
| Opening stock | 9,000 | Discount received | 800 |
| Purchases | 60,000 | Sundry creditors | 18,600 |
| Sundry debtors | 40,000 | Bills payable | 10,000 |
| Interest on loan | 800 | Outstanding salaries | 1,000 |
| Insurance premium | 1,800 | Bad debts recovered | 400 |
| Wages | 9,200 | Interest on investments | 4,000 |
| Rent | 3,040 | Trading commission | 14,000 |
| Bad debts | 2,400 | ||
| Carriage Outwards | 1,200 | ||
| Cash at Bank | 20,000 | ||
| Depreciation of furniture | 5,000 | ||
| Accrued commission | 2,000 | ||
| Advertisement | 15,000 | ||
| 3,06,640 | 3,06,640 |
Additional Information
i. Closing stock Rs 12,000 .
ii. Goods costing Rs 2,000 were distributed as free samples while goods costing Rs 1,000 were taken by the proprietor for personal use.
iii. A credit sale of Rs 4,000 was not recorded in the sales book.
iv. Closing stock included goods costing Rs 2,000 which were sold and recorded as sales but not delivered to the customer.
v. Maintain provision for doubtful debts @ 5\%.
