12. Prepare Trading and Profit & Loss Account for the year ending on 31st March, 2024 and Balance Sheet as on that date from the following balances of Trial Balance:
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| Debit Balances | Advance for Machinery | 7,000 | |
| Drawings | 10,000 | Discount | 1,000 |
| Machinery | 50,000 | Wages and Salaries | 5,000 |
| Stock | 25,000 | Cash in Hand | 6,000 |
| Purchases | 90,000 | Cash at Bank | 32,000 |
| Returns Inward | 2,000 | Credit Balances | |
| Furniture | 10,000 | Capital | 1,00,000 |
| Carriage | 2,000 | Returns Outward | 1,000 |
| Rent, Rates and Taxes | 5,000 | Provision for Doubtful Debts | 2,000 |
| Printing and Stationery | 1,000 | Creditors | 37,700 |
| Office Expenses | 1,200 | Sales | 1,28,000 |
| Bad Debts | 1,500 | General Reserve | 20,000 |
| Sundry Debtors | 40,000 |
(i) Value of stock on 31st March, 2024, ₹40,000.
(ii) Provision for Doubtful Debts is to be maintained at 5% on Sundry Debtors.
(iii) Charge depreciation on both Furniture and Machinery @ 10% p.a.
(iv) Machinery costing ₹20,000 was purchased on 1st January, 2024.
(v) Allow interest on capital @ 5% p.a.
(vi) A fire occurred on 20th March, 2024 and stock of the value of ₹7,000 was destroyed. It was fully insured and the insurance company admitted the claim in full.
(vii) 10% of net profit to be carried to General Reserve.
T.S.Grewal/2024 Edition/Practical Problems/Q-12
For full question, please refer to the text book T.S.Grewal’s Double Entry Book Keeping-Financial Accounting, Textbook for CBSE Class XI published by Sultan Chand & Sons Pvt. Ltd.