7. Following balances have been extracted from the trial balance of M/s Keshav Electronics Ltd. You are required to prepare the trading and profit and loss account and a balance sheet as on March 31, 2017.

Account Title Amount ₹ Account Title Amount ₹
Opening stock 2,26,000 Sales 6,80,000
Purchases 4,40,000 Return outwards 15,000
Drawings 75,000 Creditors 50,000
Building s 1,00,000 Bills payable 63,700
Motor van 30,000 Interest received 20,000
Freight inwards 3,400 Capital 3,50,000
Sales return 10,000
Trade expense 3,300
Heat and Power 8,000
Salary and Wages 5,000
Legal expense 3,000
Postage and Telegram 1,000
Bad debts 6,500
Cash in hand 79,000
Cash at bank 98,000
Sundry debtors 25,000
Investments 40,000
Insurance 3,500
Machinery 22,000
Total 11,78,700 Total 11,78,700

The following additional information is available:

  1. Stock on March 31, 2017 was ₹30,000.
  2. Depreciation is to be charged on building at 5% and motor van at 10%. 
  3. Provision for doubtful debts is to be maintained at 5% on Sundry Debtors. 
  4. Unexpired insurance was ₹600 .
  5. The Manager is entitled to a commission @ 5% on net profit after charging such commission.

NCERT/Rationalised 2023-24/Numerical Questions/Q-07

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