4. Trial Balance of a business as at 31st March, 2024 is given below:

Particulars Dr. (₹) Particulars Cr. (₹)
Stock on 1st April, 2023 2,50,000 Sales 22,78,000
Furniture 80,000 Commission 5,000
Plant and Machinery 15,00,000 Returns Outward 10,000
Debtors 3,00,000 Creditors 4,00,000
Wages 1,20,000 Capital 15,00,000
Salaries 2,00,000
Bad Debts 10,000
Purchases 12,00,000
Electricity Charges 12,000
Telephone Charges 24,000
General Expenses 30,000
Postage Expenses 18,000
Returns Inward 9,000
Insurance Premium 15,000
Cash in Hand 25,000
Cash at Bank 4,00,000
Total 41,93,000 Total 41,93,000

Prepare Trading and Profit & Loss Account for the year ended 31st March, 2024 and Balance Sheet as at that date after taking into account the following adjustments:

(i) Closing Stock was valued at ₹70,000.

(ii) Outstanding liabilities for wages were 6,000 and salaries 14,000.

(iii) Depreciation is to be provided @ 5% p.a. on all fixed assets.

(iv) Plant and Machinery includes a machine purchased for ₹1,00,000 on 1st October, 2023.

(v) Insurance premium paid in advance ₹2,000.

  T.S.Grewal/2024 Edition/Practical Problems/Q-04

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.

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