8. Following balances are taken from the books of Ramesh. Prepare Trading and Profit & Loss Account for the year ended 3lst March, 2024 and Balance Sheet as on that date:
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| Capital | 12,00,000 | Drawings | 2,10,000 |
| Opening Stock | 4,50,000 | Plant and Machinery | 2,40,000 |
| Furniture | 15,000 | Purchases | 29,50,000 |
| Sales | 43,50,000 | Insurance | 25,000 |
| Purchases Return | 40,000 | Sales Return | 70,000 |
| Rent | 50,000 | General Expenses | 10,000 |
| Salaries | 2,40,000 | Wages | 4,00,000 |
| Bad Debts | 10,000 | 6% Investments | 5,00,000 |
| Sundry Debtors | 4,00,000 | Sundry Creditors | 1,98,000 |
| Advertisement Expenses | 60,000 | Cash | 1,22,000 |
| Patents | 48,000 | Miscellaneous Income | 12,000 |
Adjustments:
(i) Closing Stock ₹7,50,000.
(ii) Depreciate Machinery by 10% and Furniture by 20%.
(iii) Wages ₹50,000 and salaries ₹20,000 are outstanding.
(iv) Write off ₹50,000 as further Bad Debts and create 5% Provision for Doubtful Debts. Also, create Provision for Discount on Debtors @ 2%.
(v) Investments were made on 1st July, 2023 and no interest has been received so far.
T.S.Grewal/2024 Edition/Practical Problems/Q-08
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 :