3. The following balances has been extracted from the trial of M/s Runway Shine Ltd.  Prepare a trading and profit and loss account and a balance sheet as on March 31, 2017.

Account Title Amount ₹ Account Title Amount ₹
Purchases 1,50,000 Sales 2,50,000
Opening stock 50,000 Return outwards 4,500
Return inwards 2,000 Interest received 3,500
Carriage inwards 4,500 Discount received 400
Cash in hand 77,800 Creditors 1,25,000
Cash at bank 60,800 Bill payable 6,040
Wages 2,400 Capital 1,00,000
Printing and Stationery 4,500
Discount 400
Bad debts 1,500
Insurance 2,500
Investment 32,000
Debtors 53,000
Bills receivable 20,000
Postage and Telegraph 400
Commission 200
Interest 1,000
Repair 440
Lighting Charges 500
Telephone charges 100
Carriage outward 400
Motor car 25,000
Total 4,89,440 Total 4,89,440

Adjustments

    1. Further bad debts ₹1,000. Discount on debtors ₹500 and make a provision on debtors @ 5%. 
    2. Interest received on investment @ 5%. 
    3. Wages and interest outstanding ₹100 and ₹200 respectively. 
    4. Depreciation charged on motor car @ 5% p.a. 
    5. Closing Stock ₹32,500.

NCERT/Rationalised 2023-24/Numerical Questions/Q-03

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