proprietor 2,8003,5006,64,700 15,00047,50080,00050,0002,000

8,700 2,70,000
and
use.
the account machinery
personal
from Purchase
returns Sundryreceived
Sundry
debtors
Discount
creditors
Loss Sales
returns
business sheet
his Drawings
and Furniture 5%
for
and
sheet balance Sales Plant Stock by
thebusiness profit furniture
balance account
account by the and
charged
the
the of
trading 5,0003,00,000
2,00025.60015,90050,900 5,0004,4001,400 3,72,000
1,12,600 and
Loss from LOSSside
of Interest
liabilities
10%
and side proprietor and prepare
profit Rakesh. by
profitliabilities
the machinery
is of the particulars
of the
side
It side in Mr. 56,000
the : by
Drawings capital of
debit in drawn credit 31-3-2010
and
capital following Rs. plant
the fromn Carriage ditional
outwards Information
stock
the with Office
eXpenses Carriage
inwards
Shown
1.on to on on Deducted Cash
in
hand
Rates
&
Taxes Depreciate
Treatment
Added amount Shown 12 stration:
the
on Purchases
Closing
Interest as
Fromsheet
Capital Wages Salaries
Octroi
the Rent
1 9 1. <.
 Cr. Amount2,43,000 80,0005,0003,98,25
56,000
14,250
31-3-2010
Amount6,61,000 56,000 2,65,500
7,17,200 2,000 2,67,500
ON 27,000 15,000
2,70,000 750
AS 2,64,700
3,500
RAKESH received
Discount
By
b/d
stock
closing
By profit
Assets
31-3-2010
machinery
MR.
Particulars ()
Depreciation Depreciation
Sundry
debtors
By returns
sales gross stock
Closing hand
Cash
in
OF Furniture
By ON &
ACCOUNT (-) Plant
AS
(-)
47,500
Amount 25,600
3,69,2005,0004,4002,65,500 1,12,600
7,17,200 15,900
2,00050,900
1,400 27,000
750 SHEET
account)2,67,500
LOSS Amount 3.48.25050,000 3,98,2
BALANCE
AND
2,800
3,72,000 furniture
PROFIT &
plant
3,00,000
56,950
3,56,9508,700
inwards
carriage
To outwards
carriage
To capital
stock
opening
To c/d To
office
expenses on on Liabilities
AND profit taxes Depreciation
Depreciation creditors
Sundry
Topurchases
Particulars Machinery to (+)
profit
Net
TRADING To
Net
profit(Transfered ()
Drawings
returns
() To
wages gross salaries
To &
octroi
To Rates
T
Rent Capital
To To To To
Dr.
 Adjustments bank
Cash athand
rite Outstanding
Prepaid
RentWages Sundry Debtors
CashSundry
in Capital Expenses
Telegrams General
Machinery
Postage Receivabe
& Furniture Payable
Bills Bills Drawings Discount
RentExpenses
OfficeWages
Received
Interest
reciate Closing
Stock Creditors SalariesFreight
Opening
StPurchase
oReturns Sales
Purchase
ck Returns Sales eyar from
off
Justration
ended the
n following
bad 31.03.2011
Total :
chinery
dets 130GA
Trial
to Rs. and
be by HESAA
Balance
1000 a
@ balance
and
10% 27500/Rs. Introduction
750/Rs.
800Rs. Debit
(Rs) of
3,05,960 sheet
Narayana
erovide and 76000 26000 18000
1500 8560 2800 6300 2650 3250 1200 1300 600011500
Furniture 3950 1250 19000 850 650 to
as Financlal
on
3% &
that Co
reserve by Accounting
prepare
date
5%
for Trading
oubtful Credit
(Rs)
&
3,05,960 101500 4000 18000 Profit
debts 13630 5550 450 830
and
Loss
for
the 253
 Cr.
Amount
Rs. 1.74,000
27.500 72,300830 450
2,01,500
73,580
co
NARAYANA
&
6,000
1,80,000
b/d
OF
31-3-2011 stock
closing
By Profit
ACCOUNTParticulars returns
Less
Gross
By Discount
By
Interest
sales
By
ENDING
By
LOSS
YEAR Amount
Rs. 13,000 1.11,000
1,200 4,00072,3002,01,500
18,0002,650650 5,500540 1,3007,6001,500850 10,1501,000 23,840
73,580
AND
THE
PROFIT Machinery
FOR 1,15,000
4,000 3,250750 6,300 800 debts furniture account)
AND doubtful Telegrams
stock
opening
To :Add cd
Outstanding Expenses Capital
on on General
To capital
TRADING Profit
office
To
expenses
Depreciation
Depreciation
Particulars purchases
To returns Less for
:Prepaid
Less
To
FreightTo To
Discount Reserve & on To Bad
capital to
To
Net
profit (Transfered
Wages Gross salaries
To Postage
Interest
Rent
To
To To To To
Dr. To To
 1,52,620
1,2503.950
17,460
Amount
Rs.
68,400800 8,56027.500
24.700
19,000
1,00018,000 540
1.300 76,000
26,000 7,600
Assets debts
doutful
31-3-2011 Less: Less:
Depreciation
Depreciation Reservetor
:Less
Receivable
Bills 5.550Debts
23,8401,32,690
Debtors
Sundry
Prepaid
Rent Stcok
750Closing in
Cash
handbank
Cash
at
Machinery Bad
Furniture
ON :|Less
AS
Amount
SHEET Rs. 13.630 1,52,620
BALANCE 10,8850
1,01,500
2,800 10,150
98.700
Capital
Liabilities Outstanding
Wages
or Creditors
Sundry
Drawings
Less: Interest Profit
Net
Add:
Bills
Payable
Capital
:
Add
 Illustration : 14 Trial Balance of Balaram & Co prepare Trading & Profit and Loss for the
From the following
balance sheet as on that date
eyar ended 31.03.2011 and a Credit (Rs)
Debit (Rs)
55000
Capital 45000
Drawings
Sales Returns
35000
25000
Purchase Returns
Cash at bank 38000
Factory Rent 42000
Salaries 65000
2500
Interest
15000 12000
Commission
Rent 75000
62500
Bank Loan
Insurance 1800
Furniture 75000
Sundry Debtors 85000
Cash in hand 18000
Opening Stock 53000
Sundry Creditors 43000
Reserve for bad debts 2000
Purchases 392000
Bills Payable 18000
Bills Receivable 33000
Machinery 165000
Buildings 200000
Interest on Bank Loan 1200
Trade Expenses 12000
Stationery 14000
Sales 650000
1365000 1365000
Adjustments:
Closing Stock Rs. 44,000/
Outstanding Wages Rs. 3,000/
Prepaid Rent Rs. 300
Depreciate Machinery by 10% and Furniture by 5%
Write off bad dets Rs. 3000 and provide 4% reserve for doubtful debts
Interest on Capital to be @12% per annum and charges Rs. 1500 interest on Drawings.
 2,77,2
Cr. 6,15,000 44,000 6,59,000 1,97,000 1,5002,50012,000 64,230
Amount
Rs.
Co
&
BALARAM (Transfered
drawings
6,50,000
35,000
b/d a/c)
Capital
to
stock
closing
By Profit Commission
By
OF31-3-2011 on Loss
Particulars Less
returns Interest
Interest
By
ACCOUNT
Accounting Gross
sales
By Net
ENDING By By By
Financial'
LOSS
42,000
Rs. 53,000 3,67,000
YEAR Amount
6,59,000
1,97,00012,000 66,000
14,000 15,00075,000
68,000 1,500 3,7503,0001,280 16,5001,200 2,77,2
to
AND
Ihtroduction
THE
PROFIT 3,92,000
25,000 65,0003,000 1,800 300 furniture Machinery
FOR
loan
ebts(3280-2000)
AND Capital
c/d on bad on bank
stock
opening
To To Profit To
Rent
Factory trade
expenses Add:
Outstanding
TRADING To
Commission Depreciation Depreciation
Particulars purchases
To
returns
Less
To
Stationery
& To
Less
:Prepaid
Insurance To
Bad
debts
for on
Interest
Salaries
To salaries
To Reserve Interest
Gross
To
Rent
To To To To To To
pr.
he
 Rs. 38,000
Amount 300 71,250
3,750 3,00082,000
85,000 3,280 1,65,000
75,000
Assets
Depreciation
Less: 18,000Less:
Depreciation
31-3-2011 Insurance
Prepaid Debtors
Sundry 62,500Bills
Receivable
debts Closing
Stock
Bank
atCash Hand
RBD
Less:
5,05,270 43,000
MachineryBuildings
Furniture Bad
in
ON Less: Cash
AS
Amount
SHEET Rs. 1,32,690 3,000 6,31,77
BALANCE
5,05,000
45,000
5,50,000 5,71,000 1,5005,69,500
66,000 64,230
Capital
Liabilities Salaries
Outstanding
Less: or
Drawings Interest
Less:
on Creditors
Sundry
Interest DrawingsLess:
Net
Loss
Bills
Payable
Bank
Loan
Capital
Add: