10.

From the following Trial Balance and other information, prepare Trading
and Profit
P
Loss Account for the year ended 31st March, 2023 and Balance Sheet as at that date &
LF.
Heads of Accounts
Dr.)
Sundry Debtors
Stock on 1st April, 2022
3,20,000
2,20,000
Cash in Hand
350
Cash at Bank
15A50
Plant and Machinery 1,75,000
Sundry Creditors
General Expenses
181500
10,750
Sales
1345,0
Salaries
22,250
Carriage Outwards 4,000
Rent
9,000
Purchases
11,88,700
Discount
11,000
Premises
3,45,000
Capital on 1st April, 2022
195,00
Total
23,21,500| 23,21,500

Additional Information:
(i) Stock on 31st March, 2023 was
1,24,500.
(i) Rent was unpaid to the extent of 850and? 1,500were
outstanding for General Expe
(iii) 4,000 are to be written off as bad debts out of the above debtors and 5% is to be
provided for doubtful debts.
 (iv) Depreciate Plant and Machinery by 10% and Premises by 2%.
Manager is entitled to a commission of 5% on profit after charging his com
mission.
(v) Afire broke out on 1st April, 2023 destroying goods
costing 20,000.
[Gross Profit 60,800; Net Loss 42,750; Balance Sheet Total 9,36, 100]
(Hints:
. As there is net loss, the manager will not get
commission.
9 An event occurring after the date of Balance Sheet (i.e., fire broke out on 1st April,
2023)
does not affect the Balance Sheet as on 31st March, 2023.]
11. Fronm the following Trial Balance of Shubho, prepare Trading and Profit & Loss Accounts
for the year ended 31st March, 2023 and Balance Sheet as at that date:
Heads of Accounts LF. Debit Balances Credit Balances

Land and Building 50,000

Purchases (Adjusted) 2,07,500
Stock (31st March, 2023) 45,000
Wages 45,300
Salaries 39,000
Office Expenses 15,400
Carriage Inwards 1,200
Carriage Outwards 2,000
Discount allowed 750
Discount received 1,200
Bad Debts 1,200
Sales 3,83,500
Capital Account 1,15,000
Chatterji's Loan A/c (Taken on 1st Oct., 2022 @18% p.a.) 25,000
Insurance 1,500
Commission 1,500
Plant and Machinery 50,000
Furniture and Fixtures 20,000
Drawings 20,000
Sundry Debtors 40,000
Sundry Creditors 37,350
Cash at Bank 16,000
Office Equipments 12,000
Expenses Payable 3,300
Total
5,66,850 5,66,850
 The following adjustments be made:
) Depreciate Land and Building @6%, Plant and Machinery @10%, Office equinm
@20% and Furniture and Fixtures @15%.
(ii) Create Provision for Doubtful Debts at 2% on Sundry Debtors.
(i) Insurance includes 250 Insurance Premium paid in advance.
(iv) Provide salary to Shubho 15,000 p.a.
() Outstanding Salaries 11,500.
(vi) 10% of the net profit is to be transferred to General Reserve.
[Gross Profit 1,29,500; Net Profit 26,685; Balance Sheet Total-* 2,19,0501
[Hints: 1. Closing stock is given in the Trial Balance. Thus, it will be shown in the Balanos
Sheet.
2. Adjusted Purchases is given. It means Opening Stock, Purchases Return and
Closing Stock are already adjusted.
3. Net Profit, i.e., Profit before transfer to General Reserve is 29,650.
Transfer to General Reserve is 10% of 29,650, i.e., T2,965.]
12. Prepare Trading and Profit & LoOss Account for the year ending on 31st March, 2022 and
Balance Sheet as on that date from the following balances of Trial Balance:
Particulars Particulars
Debit Balances
Advance for Machinery 7,000
Drawings 10,000 Discount 1,000
Machinery 50,000 Wages and Salaries 5,000
Stock 25,000 Cash in Hand 6,000
Purchases 90,000 Cash at Bank 32,000
Returns Inward 2,000 Credit Balances
Furniture 10,000 Capital 1,00,000
Carriage 2,000 Returns Outward 1,000
Rent, Rates and Taxes 5,000 Provision for Doubtful Debts 2,000
Printing and Stationery 1,000 Creditors 37,700
Office Expenses 1,200 Sales 1,28,000
Bad Debts 1,500 General Reserve 20,000
Sundry Debtors 40,000

Adjustments:
(i) The value of stock on 31st March, 2023, 40,000.
(ii) Provision for Doubtful Debts is to be maintained at 5% on Sundry Debtors.
(iüi) Charge depreciation on both Furniture and Machinery @10% p.a.
(D) Machinery costing 20,000 was purchased on 1st January, 2023.
(v) Allow interest on capital @5% p.a.
 Statements
19,75
) Afire occurred on 20th March, 2023 and stock of the
value of ?7,000 was destroyed.
It was fully insured nnd the insrance
company admitted the claim in full,
oi) 10% of net profit to be carried to General
Reserve.
|Gross Profil 52,000; Net Profit- 29,520; Balance Sheet Total-
IHint: Net Profit, i.e., Profit before transfer to General
1,85,500.]
Reserve-2 32,800.
Transfer to General Reserve3,280 (i.e., 10% of 32,800).]
wa Pollowing is the Trial Balance of
Indramani as on 31st March, 2023:
Debit Balances
Credit Balances
Bullding 27,000 Capital 60,000
Machinery 16,500 Returns Outward 1,100
Furniture 6,300 Sales 2,46,700
Goodwill 27,142 Provision for Doubtful Debts 6,200
Wages 31,790 Creditors 30,160
Salaries 15,040Bank Loan 10,000
Frelght Inwards 2,470
Freight Outwards 2,000
Manufacturing Expenses 11,000
Insurance 3,000
General Expenses 6,630
Debtors 67,360
Opening Stock 29,170
Purchases 95,015
Returns Inward 3,128
Commission 989
Bad Debts 1,300
Bank Charges 460
Bank Balance 7,145
Cash 721
3,54,160 3,54,160

Prepare Trading and Profit & Loss Account for the year ending 31st March, 2023 and
Balance Sheet as on that date after making the following adjustments:
(i) Value of Closing Stock6,100.
(i) Depreciate machinery @10% p.a.
(iii) Create Provision for Doubtful Debts at 5% on debtors.
(iv) Commission payable to manager at 10% on net profit.
costing3,000were destroyed
(u) On 25th March, 2023, goods costing 1,500 and furniture
of ? 1,000 for goods and 2,000 for
by fire, insurance company has accepted claims
furniture.
|Gross Profit 82, 827; Net Profit 48,264; Balance Sheet Total1,53,250.1