Page 202 - ISCDEBK-XI

Final Accounts—With Adjustments 20.35
Solution: TRADING AND PROFIT & LOSS ACCOUNT
Dr. for the year ended 31st March, 2022 Cr.
Particulars ` Particulars `
To Opening Stock 40,000 By Sales 1,80,500
To Purchases 1,30,295 Less: Sales Return 2,400 1,78,100
Less: Machine Purchased 4,000 By Closing Stock 40,925
Purchases Return 195 4,195 1,26,100
To Wages 22,525
Less: Wages for Inst. of Machine 2,000 20,525
To Freight Inwards 500
To Gross Profit c/d 31,900
2,19,025 2,19,025
To Repairs 1,675 By Gross Profit b/d 31,900
To Discount Allowed 800 By Discount Received 530
To Interest on Loan 600
Add: Outstanding 1,800 2,400
To Salaries 8,000
Add: Outstanding 800 8,800
To Postage and Telegram 800
To Insurance 1,000
Less: Prepaid 300 700
To Charity 125
To Rent 2,000
Less: Prepaid 400 1,600
To Provision for Doubtful Debts 1,480
To Bad Debts 2,310
Add: Further Bad Debts 400 2,710
To Depreciation on Machinery @ 10%:
On ` 16,000 1,600
On ` 6,000 for Half Year 300 1,900
To Net Profit transferred to Capital A/c 9,440
32,430 32,430

BALANCE SHEET as at 31st March, 2022
Liabilities ` Assets `
Outstanding Salaries 800 Cash in Hand 500
Creditors 30,305 Cash at Bank 9,500
Outstanding Interest on Loan 1,800 Rent Prepaid 400
Loan @ 12% p.a. 20,000 Insurance Prepaid 300
Capital 37,500 Debtors 30,000
Add: Net Profit 9,440 46,940 Less: Further Bad Debts 400
29,600
Less: Provision for Doubtful Debts 1,480 28,120
Stock 40,925
Machinery 16,000
Add: New Machinery 4,000
Wages for Installation 2,000
22,000
Less: Depreciation 1,900 20,100
99,845 99,845