Page 173 - ISCDEBK-XI

20.6 Double Entry Book Keeping—ISC XI

BALANCE SHEET as at 31st March, 2022
Liabilities ` Assets `

Current Liabilities: Current Assets:
Creditors 18,750 Cash 14,500
Supplier (Plant) 10,000 Accrued Interest 800
Bank Overdraft 24,500 Stock 20,500
Outstanding Expenses: Wages 900 Prepaid Insurance 250
Rent 500 Prepaid Wages 400
Salaries 600 2,000
Capital: Debtors 37,500
Opening Balance 71,175 Less: Further Bad Debts 500
Add: Net Profit 43,172 37,000
1,14,347 Less: Provision for Doubtful Debts 1,850
Less: Drawings 2,750 35,150
1,11,597 Less: Provision for Discount 703 34,447
Less: Income Tax (Note 1) 22,000 89,597 Investments 10,000
Fixed Assets:
Furniture 10,500
Less: Depreciation 1,050 9,450
Plant and Machinery
(` 50,000 + ` 10,000) 60,000
Less: Depreciation 5,500 54,500
1,44,847 1,44,847
Note: Income Tax to be taken as drawings of the proprietor.

Illustration 3.
From the following particulars extracted from the books of Saurab, prepare Trading and
Profit & Loss Account for the year ended 31st March, 2022 and Balance Sheet as at 31st March,
2022 after making necessary adjustments:

Particulars ` Particulars `
Saurab’s Capital Account (Cr.) 54,050 Sundry Debtors 12,000
Stock as on 1st April, 2021 23,400 Sundry Creditors 7,400
Sales 1,44,800 Loan from Dena Bank Ltd. @ 12% 10,000
Sales Return 4,300 Interest paid 450
Purchases 1,21,550 Printing and Stationery 1,700
Purchases Return 2,900 Advertisement 5,600
Carriage Inwards 9,300 Interest received 725
Rent 2,850 Audit fees 350
Salaries 4,650 Fire Insurance Premium 300
Cash at Bank 4,000 Travelling Expenses 1,165
Discount received 1,495 Postage and Telegrams 435
Investments @ 5% as on 1st April, 2021 2,500 Cash in Hand 190
Furniture (as on 1st April, 2021) 900 Deposits @ 10% as on 1st April, 2021 (Dr.) 15,000
Discount allowed 3,770 Drawings 5,000
General expenses 1,960