Page 196 - ISCDEBK-XI

Final Accounts—With Adjustments 20.29
Illustration 14.
The following is the Trial Balance of Bhavesh as on 31st March, 2022:

Particulars Dr. (`) Cr. (`)
Cash in Hand ......................................................................................................................................................................... 5,000 ...
Land and Building ............................................................................................................................................................... 80,000 ...
Plant and Machinery .......................................................................................................................................................... 50,000 ...
Debtors ................................................................................................................................................................................... 25,000 ...
Creditors ................................................................................................................................................................................. ... 40,000
Stock on 1st April, 2021 ..................................................................................................................................................... 10,000 ...
15% Investment on 1st April, 2021 .............................................................................................................................. 20,000 ...
Purchases ............................................................................................................................................................................... 95,000 ...
Sales .......................................................................................................................................................................................... ... 1,90,000
Bank Overdraft ...................................................................................................................................................................... ... 20,000
Wages ...................................................................................................................................................................................... 28,000 ...
Salaries .................................................................................................................................................................................... 16,000 ...
Rent .......................................................................................................................................................................................... 15,000 ...
Bad Debts ............................................................................................................................................................................... 6,000 ...
Drawings................................................................................................................................................................................. 5,000 ...
Bills Receivable ..................................................................................................................................................................... 15,000 ...
Bills Payable ........................................................................................................................................................................... ... 21,000
Carriage Inwards .................................................................................................................................................................. 6,000 ...
Customs Duty on Purchases ............................................................................................................................................ 16,000 ...
Fire Insurance Premium .................................................................................................................................................... 4,000 ...
Advertisement ...................................................................................................................................................................... 30,000 ...
Provision for Doubtful Debts .......................................................................................................................................... ... 2,000
Interest on Investments .................................................................................................................................................... ... 2,000
Sundry Expenses ................................................................................................................................................................. 11,000 ...
Furniture ................................................................................................................................................................................. 20,000 ...
General Reserve ................................................................................................................................................................... ... 25,000
Capital...................................................................................................................................................................................... ... 1,57,000
Total 4,57,000 4,57,000

Additional Information:
(i) Stock on 31st March, 2022 was valued at ` 40,000.
(ii) Included in debtors are ` 8,000 due from Ram and included in creditors are ` 6,000 due
to Ram.
(iii) Bills Receivable include a bill of ` 5,000 received from Mohan, which has been
dishonoured.
(iv) Sales include ` 5,000 for the goods sold on approval basis. Approval was not received
till 31st March. Goods are sold at a profit of 25% on cost.
(v) Wages include ` 5,000 spent on the erection of machinery on 1st April, 2021.
(vi) Provision for doubtful debts is to be maintained at 5% of debtors.
(vii) Prepaid rent amounted to ` 2,000.
(viii) Depreciate machinery by 10%.
Prepare Trading and Profit & Loss Account for the year ended 31st March, 2022 and Balance
Sheet as on that date.