Question - 04

From the following Trial Balance of shri Kamlesh, prepare final accounts for the year ending 31st March 2006.

Trial Balance
Stock Rs. 10,000                                                Sales Rs. 40,000
Purchases Rs. 24,000                                         Purchase returns Rs. 1,000
Salaries Rs. 600                                                 Commission Rs. 200
Cash Rs. 2,000                                                   Rent Rs. 600
Investment Rs. 3,000                                         Capital Rs. 30,000
Advertisement Rs. 400                                      Creditors Rs. 6,000
Insurance Rs. 600                                              Bad debts reserves Rs. 400
Wages Rs. 200                                                   B/P Rs. 1,800.
Building Rs. 30,000
Drawings Rs. 8,000
Bad debts Rs. 200
Debtors Rs. 1,000.

Adjustments :
  1. Closing stock Valued Rs. 10,000.
  2. Outstanding Salaries Rs. 200, Wages Rs. 100.
  3. Rs. 300 interest earned on investments.
  4. Make a reserve at 20% on Debtors.
  5. Provide 10% Depreciation on building.
  6. Goods of Rs. 1,000 are returned by a customer but on record was made for it in books.