28. From the following balances extracted from the books of Karan and the additional information, prepare the trading and profit and loss account for the year ended 31st March, 2023 and also show the balance sheet as at that date:
| Debit Balance (Rs. ‘000) |
Credit Balance (Rs.‘000) |
|
|---|---|---|
| Stock on 1st April, 2022 Purchases and Sales Returns Capital Account Drawings Land and Buildings Furniture and Fittings Trade Debtors and Trade Creditors Cash in Hand Investments Interest Commission Direct Expenses Postage, Stationery & Telephone Fire Insurance Premium Salaries Bank Overdraft |
625 903 22 45 300 80 250 35 100 75 25 20 90 |
1,372 13 300 450 5 30 400 |
| 2,570 | 2,570 |
Additional Information:
- Closing stock on 31st March, 2023 is valued at Rs. 6,50,000. Goods worth Rs. 5,000 are reported to have been taken away by the proprietor for his personal use at home during the year.
- Interest on investments ₹5,000 is yet to be received while Rs. 10,000 of the commission received is yet to be earned.
- Rs. 5,000 of the fire insurance premium paid is in respect of the quarter ending 30th June, 2023.
- Salaries Rs. 10,000 for March, 2023 and bank overdraft interest estimated at Rs. 20,000 are yet to be recorded as outstanding charges.
- Depreciation is to be provided on land and buildings @ 5% per annum and on furniture and fittings @ 10% per annum.
- Make a provision for doubtful debts @ 5% of trade debtors.
D.K.Goel/2024 Edition/Practical Questions/Q-28
For full question, please refer to the text book Accountancy Class-XI by Mr. D.K.Goel published by Avichal Publishing Company
Answer :