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Final Accounts—With Adjustments 20.33
BALANCE SHEET
as at 31st March, 2022
Liabilities ` Assets `

Current Liabilities Current Assets
Creditors 90,000 Cash in Hand 10,000
Bills Payable 15,600 Cash at Bank 5,000
Outstanding Rent 600 Debtors 2,07,000
Unearned Commission 1,250 Less: Further Bad Debts 5,000
Manager’s Commission 4,440 2,02,000
Bank Loan 50,000 Less: Salary to Ashok 2,000
Add: Outstanding Interest 1,250 51,250 2,00,000
Capital Less: Provision for Doubtful Debts 20,000
Opening Balance 5,19,000 1,80,000
Add: Net Profit 39,960 Less: Provision for Discount on
5,58,960 Debtors 3,600 1,76,400
Less: Drawings 10,650 Bills Receivable 10,000
Income Tax 1,000 Prepaid Insurance 900
Goods taken for Loose Tools (` 3,750 – ` 2,500) 1,250
Personal Use 20,000 31,650 5,27,310 Insurance Company (Claim) 6,000
Accrued Interest on Investment 1,500
Closing Stock 93,600
12% Investment 50,000
Fixed Assets
Machinery (` 1,90,000 + ` 10,000) 2,00,000
Less: Depreciation 15,000 1,85,000
Furniture 1,00,000
Less: Depreciation 10,000 90,000
Building 60,000
Add: Cost of Cycle Shed 4,000
64,000
Less: Depreciation 3,200 60,800
6,90,450 6,90,450

Note: Depreciation on furniture has been charged for the full year because a flat rate of 10% (and not
10% p.a.) has been given, whereas depreciation on machinery has been charged for 9 months from
1st July to 31st March.

Illustration 16.
From the following Trial Balance of Ajay, you are required to prepare Trading and
Profit & Loss Account for the year ending 31st March, 2022 and a Balance Sheet as on that date: