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19.6 Double Entry Book Keeping—CBSE XI

BALANCE SHEET as at 31st March, 2014
Liabilities ` Assets `
Bank Loan 10,000 Furniture 2,000
Outstanding Salaries 1,500 Machinery 20,000
Sundry Creditors 12,000 Less: Depreciation 2,000 18,000
Capital 72,000 Building 25,000
Add: Net Profit 15,600 Less: Depreciation 500 24,500
87,600 Prepaid Insurance 300
Less: Drawings 6,000 Sundry Debtors 30,000
81,600 Less: Provision for Doubtful Debts 1,500 28,500
Less: Income Tax 2,400 79,200 Cash in Hand 1,900
Closing Stock 27,500
1,02,700 1,02,700

2. Prepare a Trading and Profit & Loss Account for the year ending 31st March 2024,
from the balances extracted of M/s. Rahul Sons. Also prepare a Balance Sheet as
at that date.
Debit Balances ` `
Stock 50,000 Telegram Expenses 200
Wages 3,000 Legal Fees 500
Salary 8,000 Building 1,10,000
Purchases 1,75,000 5,51,800
Sales Return 3,000 Credit Balances
S. Debtors 82,000 Sales 1,80,000
Discount Allowed 1,000 Purchases Return 2,000
Insurance 3,200 Discount Received 500
Rent, Rates and Taxes 4,300 Provision for bad debts 2,500
Fixtures and Fittings 70,000 Capital 3,00,000
Trade Expenses 1,500 Creditors 22,000
Bad Debts 2,000 Commission Received 4,000
Drawings 32,000 Rent 6,000
Repairs and Renewals 1,600 Loan 34,800
Travelling Expenses 4,200 5,51,800
Postage 300

Adjustments:
(i) Commission received in advance ` 1,000.

(ii) Rent Receivable ` 2,000.
(iii) Outstanding Salary ` 1,000 and Prepaid Insurance ` 800.
(iv) Further Bad debts ` 1,000 and Provision for Bad debts @ 5% on debtors and
Provision for discount on debtors @ 2%.
(v) Closing stock ` 32,000.

(vi) Depreciation on building @ 6% p.a. (KVS 2015, Modified)