Page 184 - ISCDEBK-XI

Final Accounts—With Adjustments 20.17
Solution: Ganesh
TRADING AND PROFIT & LOSS ACCOUNT
Dr. for the year ended 31st March, 2022 Cr.
Particulars ` Particulars `
To Purchases (Adjusted) 6,99,200 By Sales 7,40,000
To Wages 900 Less: Sale of Furniture 200 7,39,800
Add: Accidental Insurance 150
Add: Rental Value of Building 500 1,550
(WN 1)
To Carriage Inwards 400
To Gross Profit c/d 38,650
7,39,800 7,39,800
To Insurance Expenses 150 By Gross Profit b/d 38,650
(` 300 – ` 150) By Discount Earned 600
To Carriage Outwards 500 By Dividend Received 300
To Rates and Insurance 400 By Rental Value of Building Occupied
Less: Prepaid 150 250 by Employees 500
To Lighting 600
To Discount allowed 100
To Loss on Sale of Furniture (WN 2) 70
To Depreciation on:
Building 1,500
Furniture 1,570 3,070
To Manager’s Commission (WN 3) 5,835
To Net Profit transferred to Capital A/c 29,475
40,050 40,050

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

Sundry Creditors 20,000 Cash in Hand and at Bank 1,750
Manager’s Commission due 5,835 Sundry Debtors 6,000
Capital 48,500 Closing Stock 61,250
Add: Net Profit 29,475 77,975 Prepaid Insurance 150
Furniture 8,000
Less: Book Value of Furniture Sold 300
7,700
Less: Depreciation 1,540 6,160
Building 30,000
Less: Depreciation 1,500 28,500
1,03,810 1,03,810