6. Prepare Trading and Profit & Loss Account for the year ended 31st March, 2024 and Balance Sheet as at that date from the following balances taken from the books of Vijay on 31st March, 2024 after giving effect to the following adjustments:
(i) Stock Bs on 31st March, 2024 was valued at ₹2,30,000.
(ii) Write off further ₹1,800 as Bad Debts and maintain the Provision for Doubtful Debts at 5%
(iii) Depreciate Machinery at 10%.
(iv) Provide 7,000 as outstanding interest on loan.
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| Capital | 2,45,000 | Loan | 78,800 |
| Drawings | 20,000 | Sales | 6,53,600 |
| General Expenses | 47,400 | Purchases | 4,70,000 |
| Building | 1,10,000 | Motor Car | 20,000 |
| Machinery | 93,400 | Provision for Doubtful Debts | 9,000 |
| Stock on 1st April, 2023 | 1,62,000 | Commission (Cr) | 13,200 |
| Insurance | 13,150 | Car Expenses | 18,000 |
| Wages | 72,000 | Cash | 800 |
| Debtors | 62,800 | Bank Overdraft | 33,000 |
| Creditors | 63,500 | Charity | 1,050 |
| Bad Debts | 5,500 |
T.S.Grewal/2024 Edition/Practical Problems/Q-06
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.