Problem 1:
From following trial balance of Raj Kumar prepare trading and profit loss
account for the year ended 31st March, 2016 and balance sheet as on
that date
Dr. Cr.
Capital 60,000
Drawings 10,000
Furniture 5,200
Bank Overdraft 8,400
Taxes and Insurance 4,000
Creditors 27,600
Buildings 40,000
Stock, 1st April 2015 44,000
Debtors 36,000
Rent 2000
Purchases 220000
Sales 300000
Sales returns 4000
General expenses 8000
Salaries 18000
Commission 4400
Carriage on purchases 3600
Bad debts 1600
Discount 3200 4000
Total 402000 402000
Following adjustments are to be made:
(a) Stock on 31st March, 2016₹ 40.120, but there has been a loss of
stock by fire on 25th March, 2016 to the extent of 10,000 not covered by
insurance.
(b) Depreciation on buildings 2,000 and on furniture 500 is to be
provided for.
(c) A provision for doubtful debts at 5% on debtors is required.
(d) Unexpired insurance amounted to 400.
(e) Interest on capital at 5% per annum is to be provided.
(f) a provision on creditors to be provided at 2%
Problem 2:
From the following trial balance of Hari and additional information
prepare trading and P & L a/c for the year ended 31 st March, 2016 and
a balance sheet as on that date:
Dr. Cr.
Capital 100000
Furniture 20000
Purchases 150000
Debtors 200000
Interest earned 4000
Salaries 30000
Sales 321000
Purchases returns 5000
Wages 20000
Rent 15000
Sales returns 10000
Bad debts written off 7000
Creditors 120000
Drawings 24000
Provision for bad debts 6000
Printing & stationery 8000
Insurance 12000
Opening stock 50000
Office expenses 12000
Prov for depreciation 2000
Total 558000 558000
Additional information:
1. Depreciate furniture by 10% on original cost
2. A provision for doubtful debts is to be created to the extent of 5% on
debtors
3. Salaries of Rs. 3000 unpaid and also salaries included Rs. 2000 paid in
advance
4. Insurance amounting to Rs. 2000 is prepaid
5. Provide outstanding office expenses Rs. 8000
6. Stock used for private purpose Rs. 6000
7. Closing stock Rs. 60,000
Note:
1. Stock used for private purpose Rs. 6000
Its goods withdrawn for personal use: deduct from purchases and
deduct from capital
2. Provision for depreciation given in trial balance:
Deduct from furniture(ie., 2000+2000)
3. Provsion for bad debts given in trial balance:
Its old provision
Take it on credit side of P & L a/c
4. Provision for bad debts given in adjustment:
P & L a/c.. Dr side
And deduct from debtors
