Question - 03

Prepare final accounts from the following Trial Balance as on 31st March 2001.

Opening stock Rs. 4,000                                    Capital Rs. 30,000
Purchases Rs. 12,000                                         Creditors Rs. 8,000
Furnitue Rs. 3,000                                             Sales Rs. 17,000
Insurance Exp. Rs. 1,300                                   Bills Payable Rs. 1,000
Cash in hand Rs. 4,000                                      Loan Rs. 3,000
Wages Rs. 3,000                                                Commission Rs. 400
Salaries Rs. 2,000                                              Bank O/D Rs. 2,600
Advertisement Rs. 800                                      
Bad debts Rs. 200
Machinery Rs. 8,000
Debtors Rs. 10,200
Drawings Rs. 1,000
Building Rs. 12,500

Adjustments :
  1. Closing stock Rs. 8,000.
  2. The proprietor's life insurance premium Rs. 300 is included in the insurance account.
  3. Credit purchase of machinery Rs. 2,000 on 1st Oct., 2001 was not recorded in books.
  4. Allow interest on Capital at 5%.
  5. Depreciate Machinery at 10%.