Page 177 - ISCDEBK-XI

20.10 Double Entry Book Keeping—ISC XI

BALANCE SHEET OF HARI as at 31st March, 2022
Liabilities ` Assets `
Capital A/c: Fixed Assets:
Opening Balance 76,690 Furniture and Fittings 5,000
Add: Profit 34,503 Less: Depreciation 500 4,500
1,11,193 Current Assets:
Less: Drawings: Stock 78,600
Cash 30,000 Sundry Debtors 23,000
Goods 600 30,600 80,593 Less: Provision for
Loan: Doubtful Debts 1,150
Bank Loan 20,000 21,850
Bank Interest due 1,700 Less: Provision for Discount 437 21,413
Current Liabilities: Bank Balance 8,000
Sundry Creditors (WN 2) 14,200 Cash Balance 380
Prepaid Printing and Stationery Expenses 3,600
1,16,493 1,16,493
Working Notes:
1. Calculation of Provisions: `
(a) Debtors as per Trial Balance 24,000
(b) Less: Due from Ram 1,000
(c) Debtors subject to provision (a – b) 23,000
(d) Less: Provision for Doubtful Debts @ 5% on ` 23,000 1,150
(e) Debtors considered good (c – d) 21,850
(f) Less: Provision for Discount on Debtors @ 2% on ` 21,850 437
21,413
2. Closing Creditors:
Creditors (given) + Purchase invoice omitted – Set off in respect of Ram = ` 14,800 + ` 400 – ` 1,000
= ` 14,200.
Illustration 5.
From the following particulars, prepare Trading and Profit & Loss Account of Raman for the
year ended 31st March, 2022 and Balance Sheet as at 31st March, 2022:
Particulars Dr. (`) Cr. (`)
Building ................................................................................................................................................................................ 5,00,000 ...
Machineries ........................................................................................................................................................................ 2,00,000 ...
Furniture .............................................................................................................................................................................. 1,00,000 ...
Cash at Bank ....................................................................................................................................................................... 90,000 ...
Cash in Hand ...................................................................................................................................................................... 10,000 ...
15% p.a. loan obtained by Raman on 1st April, 2021 on mortgage of his building ................................ ... 3,00,000
Raman’s Capital ................................................................................................................................................................. ... 5,20,000
Sundry Debtors ................................................................................................................................................................. 5,00,000 ...
Sundry Creditors ............................................................................................................................................................... ... 4,00,000
Stock on 1st April, 2021 .................................................................................................................................................. 1,20,000 ...
Purchases ............................................................................................................................................................................ 25,00,000 ...
Sales ...................................................................................................................................................................................... ... 32,20,000
Sales Return ........................................................................................................................................................................ 1,20,000 ...
Purchases Return .............................................................................................................................................................. ... 1,00,000
Rent ....................................................................................................................................................................................... 60,000 ...
Establishment Expenses ................................................................................................................................................ 1,80,000 ...
Electricity Charges ........................................................................................................................................................... 15,000 ...
Telephone Charges .......................................................................................................................................................... 10,000 ...
Commission on Sales ...................................................................................................................................................... 30,000 ...
Insurance Premium .......................................................................................................................................................... 10,000 ...
Bad Debts ............................................................................................................................................................................ 20,000 ...
Bills Receivable .................................................................................................................................................................. 75,000 ...
Total 45,40,000 45,40,000