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:
- Stock on March 31, 2017 was ₹30,000.
- Depreciation is to be charged on building at 5% and motor van at 10%.
- Provision for doubtful debts is to be maintained at 5% on Sundry Debtors.
- Unexpired insurance was ₹600 .
- The Manager is entitled to a commission @ 5% on net profit after charging such commission.
NCERT/Rationalised 2023-24/Numerical Questions/Q-07