NOTES

From the following Trial Balance of Sudhakar and Prabhakar, you are required to prepare a Trading account, and profit and Loss account for the year ended 31^st December, 1991 and Balance Sheet as on that date, after taking into consideration the additional information. 

Adjustments:

1)     Closing Stock : Cost Rs. 25,000, Market value Rs. 30,000

2)     Partners sharing profit and loss equally.

3)     Prepaid Insurance Rs. 100

4)     Goods costing Rs. 3,000 were destroyed by fire.

5)     Provide depreciation on Machinery @ 10% and on Building @ 20%.

6)     Outstanding expenses: Salaries Rs. 1,000, Rent Rs.  500

7)     Provide Reserve for bad and doubtful debts @ 5% on sundry debtors.

From the following trial balance you are required to prepare a Trading Account and Profit & Loss Account for the year ended 31^st March, 1996 & Balance sheet as on that date after taking into consideration the adjustments.                                                                                           

Trial Balance as on 31^st March, 1996 

Adjustments:

1)    Closing stock was valued at Rs. 30,000.

2)    Machinery includes purchase of new machinery on 1^st October, 1995 Rs. 10,000.

3)    Goods costing Rs. 3,000 were sent on sale or return basis, which were included in sales. Goods are sent at 25% profit      on sales.

4)    Depreciate machinery at 20% p.a.

5)    The salesmen are entitled to 2% commission on net sales.

6)    Goods of Rs. 1,200 were distributed as free samples for which no entry has been passed in the books.

From the following Trial balance of Kamlesh and Naresh. You are required to prepare Trading A/c & P & L A/c for the year ended 31^st March, 2013 and balance sheet as on that date:     

Trial balance as on 31^st March, 2013 

Adjustment:

a.      Closing stock on 31^st March, 2013 valued at Rs. 56,000.

b.      Prepaid expenses were: Wages Rs. 4,000 & Salaries Rs. 1,000.

c.      Unrecorded sales amounted to Rs. 1,000

d.      Depreciate furniture at 10% and machinery at 5%.

e.      Create Reserve for bad and doubtful debts at 5% on debtors. Goods lost by fire Rs. 1,500.

From the following trial balance of Tambe & Pitale, you are required to prepare Trading A/c & P & L A/c for the year ended 31^st March, 12 and balance sheet as on that date after taking into consideration the following adjustments.

a.    Tambe & Pitale share profits and losses in the capital proportion.

b.    Closing stock was valued at Rs. 25,500 & at market price Rs. 30,000.

c.    Outstanding expenses- Rent Rs. 300; Insurance Rs. 700.

d.    Depreciate machinery and building @ 10% p.a.

e.    Goods of Rs. 10,000 were destroyed by fire and insurance company admitted a claim for Rs. 6,500.

f.     Provide for bad debts Rs. 2,000 & Create Reserve for bad and doubtful debts at 10% on debtors.

 Trial Balance as on 31^st March, 2012 

Following is the trial balance of Hemant and Pritam sharing profits and losses equally. You are required to prepare Trading A/c and P & L A/c for the year ended 31^st March, 14 and balance sheet as on 31^st March, 2014 

Trial Balance As on 31^st March, 2014 

Adjustments:-

a.    Closing stock on 31^st March, 2014 was valued at Rs. 72,000.

b.    Depreciate Plant & Machinery and Building at 20% & 10% respectively.

c.    Bills receivable was dishonoured for Rs. 2,000.

d.    Goods withdrawn by Hemant amounting to Rs. 10,000 during the year were not recorded in the books.

e.    Provide for bad debts Rs. 2,000 & Provide R.D.D. at 5% on debtors. 

f.    Goods purchases included in closing stock amounting to Rs. 6,000 were not recorded in the books of accounts.