1)

IN THE BOOKS OF ASHOK KUMAR

TRADING AND PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED ON 30.06.2003
DR CR

PARTUCULARS Rs ₹ Rs ₹ PARTUCULARS Rs ₹ Rs ₹

To opening stock 5,760 By sales 98,780

To purchases 40,675 Less: Sales return 680 98,100
Less: Purchase return 500 40,175 By closing stock 6,800
To wages 8,480
To carriage on purchase 2,040
To factory fuel and power 4,730
*To gross profit 43,715
1,04,900 1,04,900

To carriage on sales 3,200 By gross profit 43,715

By accrued interest on
2,000
To salaries 15,000 investment
Add: Outstanding salaries 1,500 16,500 By rent 9,000
To general expenses 3,000 Less: Prepaid rent 1,000 8,000
To insurance 600
Less: Prepaid insurance
(170/2) 85 515
To depreciation
Machinery 2,000
Patents 1,500 3,500
To bad debts 725
*To net profit 26,275
53,715 53,715
 BALANCE SHEET AS ON 30.06.2007
DR CR
LIABILITIES ₹ ₹ ASSETS ₹ ₹
Capital 62,000 Cash
Add: Net profit 26,275 Hand 540
88,275 Bank 2,630 3,170
Less: Drawings 5,245 83,030 Sundry debtors 14,500
Sundry creditors 6,300 Less : Bad debts 725 13,775
Outstanding salaries 1,500 Investment 10,000
Accured interest on
Prepaid rent 1,000 2,000
investment
Buildings 22,000
Land 10,000
Machinery 20,000
Less: Depreciation (10%) 2,000 18,000
Patents 7,500
Less: Depreciation (20%) 1,500 6,000
Prepaid insurance 85
Closing stock 6,800

91,830 91,830
 IN THE BOOKS OF RAJ
TRADING AND PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED ON 30.06.2003

DR CR

PARTUCULARS Rs ₹ Rs ₹ PARTUCULARS Rs ₹ Rs ₹

To opening stock 8,000 By sales 56,040

To purchases 33,800 Less : Sales return 2,300 53,740
Less : Purchase return 1,600 32,200 By closing sock 4,340
To carriage inward 700
*To gross profit 17,180
58,080 58,080

To insurance and taxes 20,000 By gross profit 17,180

To salaries
4,400 By old provision for bad debts 700
Add: Outstanding salaries 400 4,800 By comission 900
Less: Commission received in
To interest on loan 300 advance 300 600
Add: Outstanding interest 200 500 *By net loss 11,760
To scooter expenses 2,600
Less: Drawings 1,300 1,300
To bad debts
Old 300
New 200 500
To provision for new bad
debts 140
To Depreciation
Building 1,500
Scooter 300 1,800
To general expenses 1,200

30,240 30,240
 BALANCE SHEET AS ON 30.06.2003
DR CR

LIABLITIES ₹ ₹ ASSETS ₹ ₹
Capital 25,000 Cash 2,000
Less: Net loss 11,760 Furniture 2,640
13,240 Scooter 4,000
Less: Drawings 1,600 11,640 Less: Depreciation 600 3,400
Outstanding salaries 400 Buildings 30,000

Comission recived in adavnce 300 Less: Depreciation 1,500 28,500

Bank loans 5,000 Debtors 3,000

Add: Outstanding interest 200 5,200 Less: New bad debts 200
Creditors 8,000 2,800
Less: Provision for doubtful
Suspense account 18,000 140 2,660
debts
Closing stock 4,340

43,540 43,540