Page 154 - DEBK-XI(2020)

19.6 Double Entry Book Keeping—CBSE XI

BALANCE SHEET as at 31st March, 2014
Liabilities ` Assets `
Bank Loan 7,300 Furniture 2,000
Outstanding Salaries 1,500 Machinery 20,000
Sundry Creditors 12,000 Less: Depreciation 2,000 18,000
Bills Payable 2,700 Building 25,000
Capital 72,000 Less: Depreciation 500 24,500
Add: Net Profit 15,600 Prepaid Insurance 300
87,600 Sundry Debtors 30,000
Less: Drawings 6,000 Less: Provision for Doubtful Debts 1,500 28,500
81,600 Bills Receivable 1,900
Less: Income Tax 2,400 79,200 Closing Stock 27,500
1,02,700 1,02,700

2. Prepare a Trading and Profit and Loss Account for the year ending 31st March
2020, from the balances extracted of M/s. Rahul Sons. Also prepare a Balance Sheet
as at that date.
Debit Balances ` `
Stock 50,000 Telegram Expenses 200
Wages 3,000 Legal Fees 500
Salary 8,000 Bills Receivable 50,000
Purchases 1,75,000 Building 1,10,000
Sales Return 3,000 5,51,800
S. Debtors 82,000 Credit Balances
Discount Allowed 1,000 Sales 1,80,000
Insurance 3,200 Purchases Return 2,000
Rent, Rates and Taxes 4,300 Discount Received 500
Fixtures and Fittings 20,000 Provision for bad debts 2,500
Trade Expenses 1,500 Capital 3,00,000
Bad Debts 2,000 Bills Payable 22,000
Drawings 32,000 Commission Received 4,000
Repairs and Renewals 1,600 Rent 6,000
Travelling Expenses 4,200 Loan 34,800
Postage 300 5,51,800

Adjustments:
(i) Commission received in advance ` 1,000.
(ii) Rent Receivable ` 2,000.
(iii) Outstanding Salary ` 1,000 and Prepaid Insurance ` 800.
(iv) Further Bad debts ` 1,000 and Provision for Bad debts @ 5% on debtors and
Provision for discount on debtors @ 2%.
(v) Closing stock ` 32,000.
(vi) Depreciation on building @ 6% p.a. (KVS 2015, Modified)