Question

Following is the Trial Balance of Geeta Enterprises. You are required to prepare a Trading and Profit & Loss Account for the year ended 31st March 2019 and the Balance Sheet as of that date after taking into account the additional information provided to you.
Trial Balance as of 31st March, 2019

Particulars	Debit Amount (₹)	Credit Amount (₹)
Capital A/c		50,000
Drawings	1,750
Opening Stock	8,000
Purchases & Sales	16,500	22,500
Returns	625	750
Carriage Outward	425
Wages - Productive	1,000
Unproductive	600
Salaries	1,000
Travelling expenses	1,125
Trade Expenses	325
Fuel and Coal	250
Discount	460	550
Sundry expenses	225
Bad Debts	200
Plant & Machinery	20,000
Furniture	5,500
Packing expenses	175
Sundry Debtors & Creditors	10,090	6,750
Cash in hand	2,200
Investments	10,250
Reserve for Doubtful debts		150
	80,700	80,700

Additional information:

1. Closing stock of goods on 31st March 2019 valued at ₹ 7,100 at cost price and ₹ 7,500/- as market price.

2. Travelling expenses include ₹ 125 spent on personal traveling.

3. ₹ 175 is to be written off as bad debts which were due from Mr. Ashok, a debtor, and 5% R.D.D. is to be maintained on debtors.

4. Reserve for discount on debtors as well as on creditors is to be maintained at 2% and 3% respectively.

5. Provide 10% depreciation on Plant & Machinery and Furniture.

Answer 1

In the books of Geeta Enterprises
Dr.	Trading & Profit & Loss Account for the year ended 31st March, 2019				Cr.
Particulars	Amt. (₹)	Amt. (₹)	Particulars	Amt. (₹)	Amt. (₹)
To Opening stock		8,000	By Sales	22,500
To Purchase	16,500		Less: Sales Return	625	21,875
Less: Purchase Return	750	15,750	By Closing Stock		7,100
To Productive wages		1,000
To Trade Expenses		325
To Fuel and Coal		250
To Gross Profit c/d		3,650
		28,975			28,975
To Carriage Outward		425	By Gross Profit b/d		3,650
To Unproductive Wages		600	By Discount		550
To Salaries		1,000	By Provision for
To Travelling Expenses	1,125		Discount on Creditors		203
Less: Drawings	125	1,000	By Net Loss e/d		2,942
To Discount		460
To Sundry Expenses		225
To Packing Expenses		175
To Bad debts (T)	200
Add: New B.D. (A)	175
Add: New R.D.D. (A)	496
	871
Less: Old R.D.D.(T)	150	721
To Deprecation on :
Plant and Machinery	2,000
Furniture	550	2,550
To Provision for Discount on Debtors		189
		7,345			7,345

 

Balance Sheet as of 31st March 2019
Liabilities	Amt. (₹)	Amt. (₹)	Assets	Amt. (₹)	Amt. (₹)
Capital	50,000		Plant and Machinery	20,000
Less: Drawings	1,750		Less: Depreciation @ 10%	2,000	18,000
	48,250		Furniture	5,500
Less: Travelling Exp.	125		Less: Depreciation @ 10%	550	4,950
	48,125		Sundry Debtors (T)	10,090
Less: Net Loss	2,942	45,183	Less: New B.D.(A)	175
Sundry Creditors	6,750			9,915
Less: Provision. for			Less: New R.D.D. (A)	496
Discount on Creditors @ 3%	203	6,547		9,419
			Less: Provision for
			Discount on Debtors @ 2%	189	9,230
			Cash in hand		2,200
			Investments		10,250
			Closing Stock		7,100
		51,730			51,730