5. From the following information prepare trading and profit and loss account of M/s Indian sports house for the year ending March 31, 2017.
| Account Title | Amount ₹ | Account Title | Amount ₹ |
|---|---|---|---|
| Drawings | 20,000 | Capital | 2,00,000 |
| Sundry debtors | 80,000 | Return outwards | 2,000 |
| Bad debts | 1,000 | Bank overdraft | 12,000 |
| Trade Expenses | 2,400 | Provision for bad debts | 4,000 |
| Printing and Stationery | 2,000 | Sundry creditors | 60,000 |
| Rent Rates and Taxes | 5,000 | Bills payable | 15,400 |
| Freight | 4,000 | Sales | 2,76,000 |
| Return inwards | 7,000 | ||
| Opening stock | 25,000 | ||
| Purchases | 1,80,000 | ||
| Furniture and Fixture | 20,000 | ||
| Plant and Machinery | 1,00,000 | ||
| Bills receivable | 14,000 | ||
| Wages | 10,000 | ||
| Cash in hand | 6,000 | ||
| Discount allowed | 2,000 | ||
| Investments | 40,000 | ||
| Motor car | 51,000 | ||
| Total | 5,69,400 | Total | 5,69,400 |
Adjustments
- Closing stock was ₹45,000 .
- Provision for doubtful debts is to be maintained @ 2% on debtors.
- Depreciation charged on: furniture and fixture @ 5%, plant and Machinery @ 6% and motor car @ 10% .
- A Machine of ₹30,000 was purchased on October 01, 2016.
- The manager is entitle to a commission of @ 10% of the net profit after charging such commission.
NCERT/Rationalised 2023-24/Numerical Questions/Q-05