Page 211 - ISCDEBK-XI

20.44 Double Entry Book Keeping—ISC XI

You are required to prepare Trading and Profit & Loss Account for the year ended 31st March, 2022 and
Balance Sheet as on that date.
You are also given the following information:
(a) Of the Sundry Debtors ` 600 are bad and should be written off.

(b) Maintain a provision of 5% on Sundry Debtors for Doubtful Debts.
(c) Dividend accrued and due on investment is ` 270.
(d) Insurance paid in advance ` 200, Wages outstanding ` 900.
(e) Stock on 31st March, 2022 was valued at ` 30,000 and loose tools were valued at ` 1,600.
(f) Depreciation on Building 5% and on 40% Motor Van.
(g) Provide for interest at 12% p.a. due on loan raised on 1st June, 2021.

4. The Trial Balance of Shanmuganathan as on 31st March, 2022 was as follows:
Particulars Dr. (`) Particulars Cr. (`)

Purchases 1,60,000 Sales 2,52,400
Carriage Inwards 2,505 Provision for Doubtful Debts 5,200
Sundry Debtors 50,200 Sundry Creditors 30,526
Opening Stock 26,725 Bills Payable 3,950
Manufacturing Wages 23,137 Outstanding Wages 2,000
Salaries 5,575 Trade Expenses accrued but not paid 700
Furniture 7,250 Capital A/c 50,000
Advertisement 3,000
Postage 1,226
Power and Fuel 1,350
Trade Expenses 5,831
Bad Debts 525
Loan at 15% p.a. to Subbu on 1st December, 2021 3,000
Cash in Hand and at Bank 50,000
Drawings A/c 4,452
3,44,776 3,44,776

Prepare Trading and Profit & Loss Account for the year ended 31st March, 2022 and Balance Sheet as on
that date taking into account the following information:
(a) Depreciate Furniture at 10% p.a.
(b) Sundry Debtors include an item of ` 500 due from a customer who has become insolvent and nothing
is recoverable from his estate.
(c) Provision for Doubtful Debts is to be maintained at 5% on Sundry Debtors.
(d) Goods of the value of ` 1,500 have been destroyed by fire and the Insurance Company has admitted
a claim for ` 1,000.
(e) Stock on 31st March, 2022 was ` 12,550.