Question - 13

From the given trial balance prepare trading, profit and loss account and balance sheet in the books of prakhar sarthak pvt. ltd. for the year ending 31st Dec., 2010

Furniture Rs. 640
Loose tools Rs. 6,250
Building Rs. 7,500
Capital Rs. 12,500
Bad debts Rs. 125
Bad debts reserve Rs. 200
Sundry Debtors and creditors Rs. 3,800 and 2,500
Stock (1st Jan. 2010) Rs. 3,460
Purchases and sales Rs. 5,475 and 15,450
Bank overdraft Rs. 2,850
Sales returns and purchase returns Rs. 200 and 125
Stationery Rs. 450
Interest Rs. 118
Commission Rs. 375
Cash in hand Rs. 650
Taxes & Insurance Rs. 1,250
General exp. Rs. 782
Salaries Rs. 3,300.

Adjustments:
  1. Stock has been value at Rs. 3,250 on 31st Dec., 2010.
  2. Depreciate building by 5% and funiture by 10% and the loose tools wer revalued at Rs. 5,000 in the end of the year.
  3. Outstanding salary Rs. 300 and outstanding tax was Rs. 120
  4. Prepaid insurance Rs. 100.
  5. Write off Rs. 100 as bad debts and create a reserve @ 5% on debtors.
  6. Half of the statinery was used by the proprietor for his personal use.