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Q.

From the following trial balance of Shri Ravi traders Raichur, Prepare the financial statements for the year ending 31-3-2016

Name of the accountsDebit balance Rs.Credit balance Rs.
Capital25,000
Drawings2500
Land and building5000
Plant and machinery3000
Purchase and sales40,00050,000
Returns5,0004,000
Stock on 1-4-20157,500
Furniture5,000
Salaries1150
Insurance200
Debtors and creditors76005500
Bills receivable & bills payable24002000
Commission300
Interest100
Carriage inward300
Wages1,200
Investments2000
Printing and stationery800
Cash in hand3250
Total8690086900

Adjustments

  1. Closing stock valued at Rs. 13000
  2. Outstanding liabilities were : wages Rs. 400
  3. Insurance was prepaid to the extent of Rs. 50
  4. Depreciation on land and building at 5%
Karnataka PUCKarnataka 1st PUC Commerce Board 2020Subjective· 12mImportance★★★★★
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Ravi Traders: GP 12,600; NP 10,650; Balance sheet foots at Rs 41,050. Adjustments: closing stock 13,000, o/s wages 400, prepaid insurance 50, dep on building 250.

Trading and Profit & Loss Account for the year ended 31-3-2016

ParticularsAmount (Rs)ParticularsAmount (Rs)
To Opening Stock7,500By Sales 50,000 – Returns 5,00045,000
To Purchases 40,000 – Returns 4,00036,000By Closing Stock13,000
To Carriage inward300
To Wages 1,200 + O/s 4001,600
To Gross Profit c/d12,600
Total58,000Total58,000
To Salaries1,150By Gross Profit b/d12,600
To Insurance 200 – Prepaid 50150By Commission300
To Printing & Stationery800By Interest100
To Depreciation on Land & Building250
To Net Profit (to Capital)10,650
Total13,000Total13,000

Balance Sheet as on 31-3-2016

LiabilitiesAmount (Rs)AssetsAmount (Rs)
Capital 25,000Land & Building 5,000 – Dep 2504,750
Less: Drawings 2,500Plant & Machinery3,000
Add: Net Profit 10,65033,150Furniture5,000

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