20. From the following Trial Balance of Geeta, you are required to prepare:
(i) Trading and Profit and Loss Account for the year ended on 31st March, 2019, and
(ii) Balance Sheet as at that date.
| Debit Balances | Rs. | Credit Balances | Rs. | |
|---|---|---|---|---|
| Stock on 01.04.2018 Plant and Machinery Rent Depreciation on Plant and Machinery Wages Salary for 11 months Cash Purchases Debtors Discount Carriage Inwards Bad Debts |
70,000 3,50,000 30,000 15,000 20,000 11,000 27,000 2,70,000 80,000 2,000 4,000 6,000 |
Capital Wages Outstanding Sales Creditors Bills Payables Discount Commission |
3,00,000 4,000 5,00,000 45,000 16,000 12,000 8,000 |
|
| 8,85,000 | 8,85,000 | |||
Adjustments:
- Stock on 31st March, 2019 was Rs. 96,000,
- Stock destroyed by fire was Rs. 6,000 and the Insurance Company accepted a claim for Rs. 3,600.
- Rs. 1,500 paid as rent of the office was debited to Landlord’s account (included in Debtors).
- Write off further bad debts Rs. 4,000.
- Sales include sales on return basis. Approval for sale of Rs. 2,500 has not been received till 31.03.2019. The rate of gross profit on this sale was 25% on cost.
- Create a provision for Doubtful Debts on Debtors 5%.
D.K.Goel/2024 Edition/Practical Questions/Q-20
For full question, please refer to the text book Accountancy Class-XI by Mr. D.K.Goel published by Avichal Publishing Company
Answer :