Question - 08

Preapare final accounts in the books of Drug centre Bilaspur from the following trial balance as on 31st March 2000.

Trial Balance

Purchases Rs. 12,800                                         Capital Rs. 10,000
Cash Rs. 300                                                      Sales Rs. 14,800
Bank Rs. 1,500                                                   B/P Rs. 450
Tax and Insurance Rs.500                                  Creditors Rs. 1,440
Salaries Rs. 1,500                                               Commission Rs. 570
Stock Rs. 2,100                                                   Interest Rs. 140
General exp. Rs. 900                                          Reserves for Bad debts Rs. 100
Bad debts Rs. 150
Carriage Rs. 240
Drawings Rs. 460
Building Rs. 3,720
Debtors Rs. 3,120
Discount Rs. 210.

Adjustments :
Following adjustment are to be considered at the end of the year:
  1. Closing stock was Rs. 20,000.
  2. Charge depreciation on building at 10%.
  3. Written off bad debts Rs. 120 and create reserve for bad and doubtful debts at 5%.
  4. Prepaid was Rs. 100 and insurance Rs. 50 for outstanding.
  5. Proprietor withdrew goods worth Rs. 800 for personal use which is not recorded in the books.