MENU
Question -

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

Buildings

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

11,78,700

11,78,700
The following additional information is available:
1. Stock on December 31, 2017 was ₹ 30,000.
2. Depreciation is to be charged on building at 5% and motor van at 10%.
3. Provision for doubtful debts is to be maintained at 5% on Sundry Debtors.
4. Unexpired insurance was ₹ 600.
5. The Manager is entitled to a commission @ 5% on net profit before charging such commission.



Answer -

Trading Account

Dr.

Cr.

Particulars

Amount

₹

Particulars

Amount

₹

Opening Stock

2,26,000

Sales

6,80,000

Purchases

4,40,000

Less: Sales Return

10,000

6,70,000

Less: Returns Outwards

15,000

4,25,000

Closing Stock

30,000

Freight Inwards

3,400

Heat and Power

8,000

Gross Profit

37,600

7,00,000

7,00,000

Profit and Loss Account

Dr.

Cr.

Particulars

Amount

₹

Particulars

Amount

₹

Trade Expenses

3,300

Gross Profit

37,600

Salary and Wages

5,000

Interest Received

20,000

Legal Expenses

3,000

Postage and Telegram

1,000

Bad Debts

6,500

Add: New Provision

1,250

7,750

Depreciation on Building

5,000

Depreciation on Motor Van

3,000

Insurance

3,500

Less: Unexpired Insurance

600

2,900

Net Profit

26,650

57,600

57,600

Manager’s Commission Payable

1,269

Balance b/d

26,650

Net Profit after Commission

25,381

26,650

26,650

 

Balance Sheet

Liabilities

Amount

₹

Assets

Amount

₹

Capital

3,50,000

Cash in Hand

79,000

Add: Net Profit

25,381

Cash at Bank

98,000

Less: Drawings

75,000

3,00,381

Buildings

1,00,000

Creditors

50,000

Less: Depreciation

5,000

95,000

Bills Payable

63,700

Manager’s Commission Payable

1,269

Motor Van

30,000

Less: Depreciation

3,000

27,000

Sundry Debtors

25,000

Less: New Provision

1,250

23,750

Investments

40,000

Machinery

22,000

Unexpired Insurance

600

Closing Stock

30,000

4,15,350

4,15,350

Comment(S)

Show all Coment

Leave a Comment

Free - Previous Years Question Papers
Any questions? Ask us!
NodeJS Interview Questions Answers
ASP.Net Interview Questions Answers
Interview Questions Answers
×