Question - 06

From the following balances prepare trading profit and loss A/c and balance sheet as on 31 Dec., 2001.

Trial Balance
Purchases Rs. 4,200                                           Capital Rs. 16,000
Opening stock Rs. 16,500                                  Sales Rs. 25,000
Sales retuns Rs. 300                                           Creditors Rs. 2,000
Debtors Rs. 4,300                                               Commission Rs. 140
Building Rs. 10,600  
Bills receivable Rs. 2,000
Salaries Rs. 1,600
Tax & Insurance Rs. 500                  
General Exp. Rs. 600
Discount Rs. 300
Carriage on purchase Rs. 240
Drawings Rs. 600
Wages Rs. 1,000
Cash Rs. 400

Adjustments :
  1. Closing stock Rs. 4,500.
  2. Outstanding Salaries Rs. 160, Outstanding Wages Rs. 100.
  3. Prepaid Insurance Rs. 45.
  4. Accrued commmission Rs. 60.
  5. Provision for Bad debts to be create on Debtors @ 5%.
  6. Depreciate building by 4%.