Question of 40
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 accounts | Debit balance Rs. | Credit balance Rs. |
|---|---|---|
| Capital | 25,000 | |
| Drawings | 2500 | |
| Land and building | 5000 | |
| Plant and machinery | 3000 | |
| Purchase and sales | 40,000 | 50,000 |
| Returns | 5,000 | 4,000 |
| Stock on 1-4-2015 | 7,500 | |
| Furniture | 5,000 | |
| Salaries | 1150 | |
| Insurance | 200 | |
| Debtors and creditors | 7600 | 5500 |
| Bills receivable & bills payable | 2400 | 2000 |
| Commission | 300 | |
| Interest | 100 | |
| Carriage inward | 300 | |
| Wages | 1,200 | |
| Investments | 2000 | |
| Printing and stationery | 800 | |
| Cash in hand | 3250 | |
| Total | 86900 | 86900 |
Adjustments
- Closing stock valued at Rs. 13000
- Outstanding liabilities were : wages Rs. 400
- Insurance was prepaid to the extent of Rs. 50
- Depreciation on land and building at 5%
Karnataka PUCKarnataka 1st PUC Commerce Board 2020Subjective· 12mImportance★★★★★
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Start your 14-day free trial to unlock the full solution →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
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
|---|---|---|---|
| To Opening Stock | 7,500 | By Sales 50,000 – Returns 5,000 | 45,000 |
| To Purchases 40,000 – Returns 4,000 | 36,000 | By Closing Stock | 13,000 |
| To Carriage inward | 300 | ||
| To Wages 1,200 + O/s 400 | 1,600 | ||
| To Gross Profit c/d | 12,600 | ||
| Total | 58,000 | Total | 58,000 |
| To Salaries | 1,150 | By Gross Profit b/d | 12,600 |
| To Insurance 200 – Prepaid 50 | 150 | By Commission | 300 |
| To Printing & Stationery | 800 | By Interest | 100 |
| To Depreciation on Land & Building | 250 | ||
| To Net Profit (to Capital) | 10,650 | ||
| Total | 13,000 | Total | 13,000 |
Balance Sheet as on 31-3-2016
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
|---|---|---|---|
| Capital 25,000 | Land & Building 5,000 – Dep 250 | 4,750 | |
| Less: Drawings 2,500 | Plant & Machinery | 3,000 | |
| Add: Net Profit 10,650 | 33,150 | Furniture | 5,000 |
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