Question - 12

The following balance appeared on 31st Dec., 2007 on the books of shyam and Bros. :

Cash in hand Rs. 1,490                                            Bad debts recovered Rs. 450
Debtors Rs. 66,180                                                  Discount Rs. 850
Opening stock Rs. 23,950                                       Provision of bad debt Rs. 1,500
Furniture Rs. 920                                                    Purchase reutrns Rs. 15,000
Drawings Rs. 4,070                                                Bank overdraft Rs. 15,250
Motor Lorry Rs. 23,600                                         Creditors Rs. 42,000
Purchase Rs. 1,98,050                                            Sales Rs. 2,45,000
Commission on sales Rs. 1,500                             Rent Rs. 2,350
Tax and Insurance Rs. 3,025                                  Capital Rs. 46,250.
Legal charge Rs. 750
Salaries Rs. 9,560
Motor car Exp. Rs. 3,250
Interest Rs. 1,450
Travelling Exp. Rs. 2,350
Repairs Rs. 675
Building Rs. 25,600
Bad debts Rs. 1,850
Telephone Rs. 350

Prepare trading and profit and loss account and balance sheet as on 31st Dec., 2007 after considering the following adjustments :
  1. Rs. 150 are to be written off as bad debts and the provision for bad debt is to be maintaned at Rs. 2,000.
  2. Audit fees Rs. 300 salary Rs. 600 Legal charges Rs. 250 were unpaid.
  3. Rs. 450 for interest on bank overdraft is to be provided.
  4. Commission Rs. 250 and insurance Rs. 400 are prepaid.
  5. Depreciation is to be written off on furniture bt 10% Motor lorry by 15% and building by 2%.
  6. Goods worth Rs. 50 were given away as charity Rs. 500 were distributed as free samples and Rs. 750 were taken away by the proprietor for his personal use.
  7. Insured stock valued Rs. 2,500 was destroyed by fire and the claim being accepted by the insurance company.