8. From the following balances extracted from the books of Raga Ltd. prepare a trading and profit and loss account for the year ended March 31, 2017 and a balance sheet as on that date.
| Account Title | Amount ₹ | Account Title | Amount ₹ |
|---|---|---|---|
| Drawings | 20,000 | Sales | 2,20,000 |
| Land and Building s | 12,000 | Capital | 1,01,110 |
| Plant and Machinery | 40,000 | Discount | 1,260 |
| Carriage inwards | 100 | Apprentice premium | 5,230 |
| Wages | 500 | Bills payable | 1,28,870 |
| Salary | 2,000 | Purchases return | 10,000 |
| Sales return | 200 | ||
| Bank charges | 200 | ||
| Coal, Gas and Water | 1,200 | ||
| purchases | 1,50,000 | ||
| Trade Expenses | 3,800 | ||
| Stock (Opening) | 76,800 | ||
| Cash at bank | 50,000 | ||
| Rates and Taxes | 870 | ||
| Bills receivable | 24,500 | ||
| Sundry debtors | 54,300 | ||
| Cash in hand | 30,000 | ||
| Total | 4,66,470 | Total | 4,66,470 |
The additional information is as under:
- Closing stock was valued at the end of the year ₹20,000.
- Depreciation on plant and machinery charged at 5% and land and building at 10%.
- Discount on debtors at 3%.
- Make a provision at 5% on debtors for doubtful debts.
- Salary outstanding was ₹100 and Wages prepaid was ₹40.
- The manager is entitled a commission of 5% on net profit after charging such commission.
NCERT/Rationalised 2023-24/Numerical Questions/Q-08