From the following Trial Balance of M/s Sanjay and Keshav, you are required to prepare Trading and Profit and Loss account, for the year ended 31st March 2013 and Balance Sheet as on that date after taking into account the following additional information:
|Trial Balance as on 31st March 2013|
|Debit Balances||Amount (Rs.)||Credit Balances||Amount (Rs.)|
|Bad debts||20,000||Sundry creditors||1,00,000|
|Salary and wages||24,000||Capital account:|
|Cash in hand||38,000|
|Land and building||4,00,000|
|Postage and telegram||7,000|
- Insurance paid in advance Rs. 3,000.
- Depreciation provided on furniture at 10%.
- Salary and wages outstanding Rs. 6,000.
- Rent received in advance Rs. 5,000.
- Closing stock as on 31.03.2013 Rs. 2,00,000.
Financial Statements of Sanjay and Keshav
|Dr.||Trading Account for the year ended March 31, 2013||Cr.|
|Gross Profit (Balancing Figure)||2,93,000|
|Dr.||Profit and Loss Account for the year ended March 31, 2013||Cr.|
|Salary and Wages||24,000||Less: Unearned Rent||5,000||17,000|
|Depreciation on Furniture||28,000|
|Less: Prepaid Insurance||3,000||9,000|
|Postage & Telegram||7,000|
|Net Profit (Balancing Figure)|
|Dr.||Balance Sheet as on March 31, 2013||Cr.|
|Sanjay||5,00,000||Land & Building|
|Add: Net Profit||97,000||5,97,000||Furniture||2,80,000|
|Add: Net Profit||97,000||3,97,000|
|Current Liabilities:||Closing Stock||2,00,000|
|Outstanding Salary and Wages||6,000||Cash||38,000|
|Unearned Rent||5,000||Bills Receivable||80,000|
|Bills Payable||78,000||Prepaid Insurance||3,000|
WN1: Calculation of Depreciation
WN2: Calculation of Share in Profit