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    Final Accounts Problem No.02

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    Rajendra Kasetty
    Ravi's trial balance for the year ending December 31, 2019 shows sales of Rs. 25,000 and purchases of Rs. 15,000. Additional information provides adjustments for closing stock, unpaid salaries, rent paid in advance, and prepaid insurance. From this, prepare trading and profit and loss accounts to determine a gross profit of Rs. 9,700 and net profit of Rs. 5,890, and a balance sheet with a total of Rs. 42,190.

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    Final Accounts Problem No.02

    Uploaded by

    Rajendra Kasetty
    7 views1 page
    Ravi's trial balance for the year ending December 31, 2019 shows sales of Rs. 25,000 and purchases of Rs. 15,000. Additional information provides adjustments for closing stock, unpaid salaries, rent paid in advance, and prepaid insurance. From this, prepare trading and profit and loss accounts to determine a gross profit of Rs. 9,700 and net profit of Rs. 5,890, and a balance sheet with a total of Rs. 42,190.

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    Ravi's trial balance for the year ending December 31, 2019 shows sales of Rs. 25,000 and purchases of Rs. 15,000. Additional information provides adjustments for closing stock, unpaid salaries, rent paid in advance, and prepaid insurance. From this, prepare trading and profit and loss accounts to determine a gross profit of Rs. 9,700 and net profit of Rs. 5,890, and a balance sheet with a total of Rs. 42,190.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    7 views1 page

    Final Accounts Problem No.02

    Uploaded by

    Rajendra Kasetty
    Ravi's trial balance for the year ending December 31, 2019 shows sales of Rs. 25,000 and purchases of Rs. 15,000. Additional information provides adjustments for closing stock, unpaid salaries, rent paid in advance, and prepaid insurance. From this, prepare trading and profit and loss accounts to determine a gross profit of Rs. 9,700 and net profit of Rs. 5,890, and a balance sheet with a total of Rs. 42,190.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Final Accounts: Problem No.

    02

    From the following Trial Balance of Ravi, Prepare Trading and Profit and Loss Account
    for the year ended 31st December 2019 and a Balance sheet as on that date

    Particulars Debit Credit

    Rs. Rs.

    Capital - 40,000

    Sales - 25,000

    Purchases 15,000

    Salaries 2,000

    Rent 1,500

    Insurance 300

    Drawings 5,000

    Machinery 28,000

    Bank balance 4,500

    Cash 2,000

    Stock 1-1-2019 5,200

    Debtors 2,500

    Creditors - 1,000

    Total 66,000 66,000

    Adjustments required:

    1. Stock on 31-12-2020 Rs.4,900


    2. Salaries unpaid Rs.300
    3. Rent paid in Advance Rs.200
    4. Insurance prepaid Rs.90

    Answer: Gross Profit: Rs.9,700, Net Profit Rs.5,890, Balance sheet Total Rs.42,190.

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