4. From the following Trial Balance you are required to prepare trading and profit and loss account for the year ending March 31, 2017 and Balance Sheet on that date.
| Account Title | Amount ₹ | Account Title | Amount ₹ |
|---|---|---|---|
| Opening stock | 25,000 | Sales | 7,00,000 |
| Furniture | 16,000 | Creditors | 72,500 |
| Purchases | 5,55,300 | Bank Overdraft | 50,000 |
| Carriage Inwards | 4,700 | Provision for bad and | 2,100 |
| Bad debts | 1,800 | doubtful debts | 500 |
| Wages | 52,000 | Discount | 2,00,000 |
| Debtors | 80,000 | Capital | 20,000 |
| Sales Return | 15,000 | Purchases Return | 7,00,000 |
| Rent | 24,000 | ||
| Miscellaneous Expenses | 3,400 | ||
| Salaries | 68,000 | ||
| Cash | 8,900 | ||
| Drawings | 14,000 | ||
| Buildings | 1,60,000 | ||
| Advertising | 10,000 | ||
| Interest on Bank Overdraft | 7,000 | ||
| Total | 10,45,100 | Total | 10,45,100 |
Adjustments
- Closing stock valued at ₹36,000.
- Private purchases amounting to ₹5000 debited to purchases account.
- Provision for doubtful debts @ 5% on debtors.
- Sign board costing ₹4,000 includes in advertising.
- Depreciate furniture by 10%.
NCERT/Rationalised 2023-24/Numerical Questions/Q-04