Page 210 - ISCDEBK-XI

Final Accounts—With Adjustments 20.43
2. Following is the Trial Balance of M/s. Radha Krishna & Co. as on 31st March, 2022:

Debit Balances ` Credit Balances `
Stock on 1st April, 2021 85,000 S. Radhakrishna’s capital 5,00,000
Purchases 4,57,500 Bills Payable 40,000
Salaries 64,000 Sundry Creditors 1,95,000
Wages 33,500 Loans on Mortgage 2,50,000
Building 4,60,000 Returns Outward 5,000
Plant and Machinery 2,00,000 Sales 8,05,000
Furniture and Fittings 25,500 Provision for Doubtful Debts 5,000
Rent 24,000
Carriage Inwards 3,500
Dock charges 27,000
Sundry Debtors 3,20,000
Bills Receivable 35,000
Insurance 4,500
Discount 2,500
General Expenses 3,500
Rates and Taxes 14,500
Customs Duty 23,000
Repairs 7,000
Bad Debts 10,000
18,00,000 18,00,000
Prepare Trading and Profit & Loss Account and Balance Sheet taking into consi deration the following
adjustments:
(a) Provide for interest on loan for the year at 12% p.a.
(b) Create 5% provision on Debtors for Doubtful Debts.
(c) Stocks taken on 31st March, 2022 were ` 1,27,500.
(d) Depreciation to be charged on Furniture and Fittings at 10%, Plant and Machinery at 5% and Building at 2.5%.
3. Following are the Ledger Accounts of Rustomji for the year ended 31st March, 2022:

Ledger Accounts ` Ledger Accounts `
Building 30,000 Cash in Hand 670
Sundry Debtors 19,000 Bad Debts 200
Sundry Creditors 38,000 Loan from Mohan 5,000
Income Tax 2,050 Investments 13,000
Loose Tools 2,000 Provision for Doubtful Debts 3,200
Cash at Bank 32,400 Insurance 1,700
Sundry Expenses 3,980 Furniture 6,000
Purchases 3,14,000 Stock on 1st April, 2021 54,700
Bank Interest (Cr.) 150 Capital 94,780
Wages 20,000 Discount Received 1,070
Carriage Inwards 2,240 Discount Allowed 1,260
Sales 3,70,000 Drawings 4,000
Motor Van 25,000 Bills Payable 20,000