Subject: Accountancy, asked on 16/2/12

From the following figures extracted out from the books of Shri Govind , you are required to prepare a trading and profit & loss account for the year ended 31st march 2012 and a balance sheet as on the date after making the necessary adjustments :

Shri govinds capital = 228800

Shri govinds drawings = 13200

plant and machinery = 99000

freehold property = 66000

purchases = 110000

returns outward = 1100

salaries = 13200

office expenses = 2750

office furniture = 5500

discount a/c ( Dr.) = 1320

sundry debtors = 29260

loan to Shri krishna @ 10% p.a. balance on 1.4.2011 = 44000

cash at bank = 29260

bill payable = 5500

stock on 1.4.2012 = 38500

wages = 35200

sundry creditors = 44000

postage and telegrams = 1540

insurance = 1760

gas and fuel = 2970

bad debts = 660

office rent = 2860

frieght = 9900

loose tools = 2200

factory lighting = 1100

provision for doubtful debts = 880

interest on loan to shri krishna = 1100

cash in hand = 2640

sales = 231440

ADJUSTMENTS :

a. stock on 31st march 2012 was valued at rs. 72600

b. a new machine was installed during the year costing Rs.15400 but it was not recorded in the books as no payment was made for it. Wages Rs.1100 paid for erection have been debited to wages account.

c. depreciation plant and machinery by 33-1/3 %

furniture by 10 %

freehold property by 5 %

d. loose tools were valued at rs.1760 on 31.3.2012

e. of the sundry debtors Rs.660 are bad and should be written off.

f. maintain a provision of 5% on the sundry debtors for doubtful debts.

g. the manager is entitled to a commission of 10% of the net pofits after charging such commision.

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