Question - 05

Following is the trial balance of computer world bilaspur for the year ended 31st March 2000.

Trial Balance
Opening Stock Rs. 15,000                                  Capital Rs. 50,000
Purchases Rs. 40,000                                          Sales Rs. 52,000
Sales retuns Rs. 2,000                                          Purchase retutns Rs. 4,000
Wages Rs. 300                                                     Creditrors Rs. 13,000
Carriage inward Rs. 500                                      Bank Loan Rs. 3,000
Carriage outward Rs. 700
Salaries Rs. 200  
Machinery Rs. 35,000                  
Charity Rs. 400
Loss on sale of furniture Rs. 400
Cash Rs. 500
Debtors Rs. 27,000

Adjustments :
  1. Closing stock Valued Rs. 6,500.
  2. Outstanding Salaries Rs. 800, Wages Rs. 200.
  3. Interest on bank's loan at 12% for 6 months is due.
  4. Depreciation on machinery at 15%.
  5. Create a reserve for bad debts at 10% and for discount on debtors at 2%.