5. From the following Trial Balance of Sunil as on 31st March, 2024, prepare Trading and Profit & Loss Account for the year ended 31st March, 2024 and Balance Sheet as at that date:
| Heads of Accounts | L.F. | Debit Balances ₹ | Credit Balances ₹ |
|---|---|---|---|
| Capital | 8,00,000 | ||
| Drawings | 1,80,000 | ||
| Sales | 15,50,000 | ||
| Purchases | 8,26,000 | ||
| Stock (1st April, 2023) | 4,20,000 | ||
| Returns Outward | 16,000 | ||
| Carriage Inwards | 12,000 | ||
| Wages | 40,000 | ||
| Power | 60,000 | ||
| Machinery | 5,00,000 | ||
| Furniture | 1,40,000 | ||
| Rent | 2,20,000 | ||
| Salary | 1,50,000 | ||
| Insurance | 36,000 | ||
| Bank Loan | 2,50,000 | ||
| Debtors | 2,06,000 | ||
| Creditors | 1,89,000 | ||
| Cash in Hand | 15,000 | ||
| Total | 28,05,000 | 28,05,000 |
Adjustments:
(i) Closing Stock ₹6,40,000.
(ii) Wages outstanding ₹24,000.
(iii) Interest rate of Bank Loan is 8% p.a.
(iv) Bad Debts ₹6,000.
(v) Provision for Doubtful Debts to be 5%
(vi) Rent is paid for 11 months.
(vii) Insurance premium is paid per annum, ended 31st May, 2024.
(viii) Loan from the bank was taken on 1st October, 2023.
(ix) Provide Depreciation on machinery @ 10% and on Furniture @ 5%.
T.S.Grewal/2024 Edition/Practical Problems/Q-05
For full question, please refer to the text book T.S.Grewal’s Double Entry Book Keeping-Financial Accounting, Textbook for CBSE Class XI published by Sultan Chand & Sons Pvt. Ltd.
Answer :