undefined | unit 1 accounting from incomplete records

FA2

UNIT – 1Accounting from Incomplete Records Q1) You are given 1) The balance sheet of N. Swami on 31.12.20042) Cash Transaction for the year up to 31.12.20053) A Summary of the remaining transaction BALANCE SHEET AS ON 31/12/2004

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital		19,600	Cash		800
			Stock		7,500
Creditors		3,600	Debtors		3,900
			Machinery		4,000
			Land & Building		7,000
TOTAL		23,200	TOTAL		23,200

Dr. SUMMARY OF CASH TRANSACTION. Cr.

Particulars	Amount	Particulars	Amount
Opening Balance	800	Payment to creditors	14,700
Received from Debtors	29,000	Wages	1,580
Cash Sales	3,700	Salaries	4,900
		Drawing	4,500
		Office expenses	890
		Investment	1,730
		Closing Balance	5,200
TOTAL	33,500	TOTAL	33,500

Other transaction: -Sales (Credit) Rs. 40,760, Discount to Customer Rs.200, Purchased Rs. 30,000, Discount Received Rs.100, Closing Stock of Goods Rs. 5,300Provide for depreciation on P&M @ 5% and Land and Building @ 2.5%Prepare the Trading A/c, P&L A/c. and Balance sheet. A1) Dr. TRADING A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Opening Stock		7,500	By Sales
To Purchase			Cash	3,700
Cash	-		Credit	40,760	44,460
Credit	30,000	30,000
To Wages		1,580	By Closing Stock		5,300
To Gross Profit		10,680
TOTAL		49,760	TOTAL		49,760

Dr. PROFIT AND LOSS A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Salaries		4,900	By Gross Profit		10,680
To Discount Allowed		200	By Discount Received		100
To Office Expenses		890
To Depreciation Machinery Building	200 175	375
To NET PROFIT		4,415
TOTAL		10,780	TOTAL		10,780

BALANCE SHEET AS ON 31/12/2007

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital	19,600		Machinery	4,000
Add: - NET PROFIT	4,415		Less: - Depn @ 5%	200	3,800
Less: - Drawing	(4,500)	19,515	Building	7,000
			Less: - Depn @ 2.5%	175	6,825
			Debtors		15,460
Creditors		18,800	Investment		1,730
			Closing Stock		5,300
			Cash		5,200
TOTAL		38,315	TOTAL		38,315

WORKING NOTE: -Dr. DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	3,900	By Cash Received	29,000
To Credit sales	40,760	By Discount Allowed	200
		By Balance c/d	15,460
TOTAL	34,660	TOTAL	34,660

Dr. CREDITORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash	14,700	By Balance b/d	3,600
To Discount Received	100	By Credit Purchase	30,000
To Balance c/d	18,800
TOTAL	33,600	TOTAL	33,600

Q2) Amar did not keep proper books of account. However, he gives you the following information relating 2007: -

Assets & Liabilities	1.1.07	31.12.07
Cash at bank	1,000	1,800
Stock	20,000	19,500
Sundry Debtors	15,000	16,000
Machinery	40,000	-----
Sundry Creditors	20,000	18,000

Dr. SUMMARY OF CASH TRANSACTION. Cr.

Particulars	Amount	Particulars	Amount
Opening Balance	1,000	Payment to creditors	35,000
Received from Debtors	76,500	Wages	15,100
Cash Sales	8,200	Salaries. and Expenses	11,600
Sales of Newspaper	200	Building Purchased	20,000
Loan from Mrs Amar (@ 9% on 1.10.07)	6,000	Domestic expenses	8,400
		Closing Balance	1,800

During the year Rs. 600 had to be written off as bad. Machinery is to be depreciated @ 15% p.a. Expenses owing are Rs. 800. Prepare Amar's Trading & profit & Loss Account & Balance sheet relating to 2007. A2) Dr. TRADING A/c. Cr.

PARTICULAR	AMOUNT	AMOUNT	PARTICULAR	AMOUNT	AMOUNT
To Opening Stock		20,000	By Sales
To Purchase			Cash	8,200
Cash	-		Credit	77,500	85,700
Credit	33,000	33,000
To Wages		15,100	By Closing Stock		19,500
To Gross Profit		37,100
TOTAL		1,05,200	TOTAL		1,05,200

Dr. PROFIT AND LOSS A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Interest on Loan		135	By Gross Profit		37,100
To Salaries & Expenses	11,600		By Sale of News paper		200
Add: - O/S Expenses	800	12,400
To Domestic expenses		8,400
To Bad Debt		600
To Depn on Machinery		6,000
To NET PROFIT		9,765
TOTAL		37,300	TOTAL		37,300

BALANCE SHEET AS ON 31/12/2007

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital	56,000		Machinery	40,000
Add: - NET PROFIT	9,765	65,765	Less: - Depn @15%	6,000	34,000
			Building		20,000
O/S Expenses		800	Debtors	16,000
Creditors		18,000	Less: - Bad Debt	600	15,400
Loan from Mrs Amar	6,000		Closing Stock		19,500
Add: - Int on Loan	135	6,135	Cash		1,800
TOTAL		90,700	TOTAL		90,700

WORKING NOTE: -BALANCE SHEET AS ON 31/12/2006

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital (Bal.Fig.)		56,000	Cash		1,000
			Stock		20,000
Creditors		20,000	Debtors		15,000
			Machinery		40,000
TOTAL		76,000	TOTAL		76,000

Dr. DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	15,000	By Cash & Cheque Received	76,500
To Credit sales	77,500	By Balance c/d	16,000

TOTAL	92,500	TOTAL	92,500

Dr. CREDITORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To cash	35,000	By Balance b/d	20,000
To Balance c/d	18,000	By Credit Purchase	33,000
TOTAL	53,000	TOTAL	53,000

Q3) Ashutosh carries on small business, but he does not maintain a complete set of account books. He banks all receipts and makes all payments only by means of cheques. He maintains properly a Cash book, Sales Ledger, and Purchase Ledger. He also makes close of every accounting year. From such records you are able together following facts: Receipts for the year ended 31.12.2011

From Sundry Debtors	17,625
Cash Sales	4,125
Paid in by Ashutosh, the proprietor	2,500
TOTAL	24,250

PAYMENT MADE IN THE YEAR ENDED 31.12.2011.

New Plant Purchase	625
Drawings	1,500
Wages	6,725
Salaries	1,125
Interest paid	75
Telephones	125
Rent	1,200
Light and Power	475
Sundry expenses	2,125
Sundry creditors (Purchase ledger accounts)	7,625

PARTICULARS	31.12.2010	31.12.2011
Sundry Creditors	2525	2,400
Sundry Debtors	3,750	6,125
Bank	625	NIL
Stock	6,250	3,125
Plant	7,500	7,315

From the above data, prepare Profit and Loss A/c for year ended 31st Dec, 2011 and Balance Sheet as on that date. A3) Dr. TRADING A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Opening Stock		6,250	By Sales
To Purchase		7,500	Cash	4,125
To Wages		6,725	Credit	20,000	24,125
To Light & Power		475
To Gross Profit		6,300	By Closing Stock		3,125

TOTAL		27,250	TOTAL		27,250

Dr. PROFIT AND LOSS A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Salaries		1,125	By Gross Profit		6,300
To Interest		75
To Telephones Exp		125
To Rent		1,200
To Sundry Expense		2,125
To Depreciation		810
To NET PROFIT		840

TOTAL		6,300	TOTAL		6,300

BALANCE SHEET AS ON 31/12/2011

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital	15,600		Plant	7,500
			Add: - Purchase	625
Add: - NET PROFIT	840		Less: - Depn	810	7,315
Less: - Drawing	(1,500)		Debtors		6,125
Add: - ADI	2500	17,440	Closing Stock		3,125
			Bank		3,275
Creditors		2,400

TOTAL		19,840	TOTAL		19,840

WORKING NOTE: -BALANCE SHEET AS ON 01/01/2011

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital (Bal.Fig.)		15,600	Bank		625
			Stock		6,250
Creditors		2,525	Debtors		3,750
			Plant		7,500
TOTAL		18,125	TOTAL		18,125

Dr. DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	3,750	By Cash & Cheque Received	17,625
To Credit sales (Bal Fig)	20,000	By Balance c/d	6,125

TOTAL	23,750	TOTAL	23,750

Dr. CREDITORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash/Bank	7,625	By Balance b/d	2,525
To Balance c/d	2,400	By Credit Purchase (Bal Fig)	7,500
TOTAL	10,025	TOTAL	10,025

Dr. CASH/BANK A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	625	By Plant(Purchased)	625
To Debtors A/c (Receipt)	17,625	By Drawings	1,500
To Cash Sales	4,125	By Wages	6,725
To Capital Introduced (Additional)	2,500	By Salaries	1,125
		By Interest Paid	75
		By Telephone Expenses	125
		By Rent	1,200
		By Light & Power	475
		By Sundry Expenses	2,125
		By Creditors(Payment)	7,625
		By Balance c/d (Bal Fig)	3,275

TOTAL	24,875	TOTAL	24,875

Q4) Amisha did not maintain her books of accounts properly. From the following data supplied to you prepare Final Accounts for the year ended 31.12.11

PARTICULARS	AMOUNT
Opening Stock 1.1.11	10,000
Cash on Hand 1.1.11	5,000
Creditors of Furniture & Fixtures on 1.1.11(Dep@10%)	2,000
Rent (paid for 10 months)	1,000
Cash received from Debtors (after allowing 2% disc)	29,400
Cash paid to Creditors (after receiving 3% disc)	17,460
Bad Debts previously written off now recovered	200
Cash Purchases	3,000
Credit Purchases	30,000
Debtors on 31.12.11	12,000
Drawings	5,000
Donations	1,000
Sales (80% Credit Sales)	50,000
Commission Received	1,000
Rate of G.P on Sales	20%

A4) Dr. TRADING A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Opening Stock		10,000	By Sales
To Purchase			Cash	10,000
Cash	3,000		Credit	40,000	50,000
Credit	30,000	33,000
To Gross Profit (20% of 50,000)		10,000	By Closing Stock (Bal Fig)		3,000

TOTAL		53,000	TOTAL		53,000

Dr. PROFIT AND LOSS A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Rent	1,000		By Gross Profit		10,000
Add: O/s Rent (2 months)	200	1,200	By Bad Debts Recovered		200
To Disc Allowed		600	By Disc Received		540
To Donations		1,000	By Commission		1000
To Depreciation		200
To NET PROFIT		8,740

TOTAL		11,740	TOTAL		11,740

BALANCE SHEET AS ON 31/12/2011

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital	17,000		Furniture	2,000
			Less: Depreciation	200	1,800
Add: - NET PROFIT	8,740		(10% of 2000)
Less: - Drawing	5,000	20,740	Debtors		12,000
			Closing Stock		3,000
Outstanding Rent		200	Cash/Bank		18,140
Creditors		14,000

TOTAL		34,940	TOTAL		34,940

WORKING NOTE: -BALANCE SHEET AS ON 01/01/2011

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital (Bal.Fig.)		17,000	Cash/Bank		5,000
			Stock		10,000
Creditors		2,000	Debtors		2,000
			Furniture		2,000
TOTAL		19,000	TOTAL		19,000

Dr. DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d (Bal Fig)	2,000	By Cash & Cheque Received	29,400
To Credit sales (80% of 50,000)	40,000	By Disc Allowed	600
		By Balance c/d	12,000
TOTAL	42,000	TOTAL	42,000

Dr. CREDITORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash/Bank	17,460	By Balance b/d	2,000
To Disc Received	540	By Credit Purchase	30,000
To Balance c/d (Bal Fig)	14,000
TOTAL	32,000	TOTAL	32,000

Dr. CASH/BANK A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	5,000	By Cash Purchases	3,000
To Debtors A/c (Receipt)	29,400	By Drawings	5,000
To Cash Sales	10,000	By Rent	1,000
To Bad Debts Recovered	200	By Creditors(Payment)	17,460
To Commission Received	1,000	By Donations	1,000
		By Balance c/d (Bal Fig)	18,140

TOTAL	45,600	TOTAL	45,600

Q5) You are given a. Opening Balance Sheet as on 1.4.2013b. Cash Account for the year ended 31.3.2014c. Additional InformationPrepare Final Accounts of Mr. Sahil Khan BALANCE SHEET AS ON 01/03/2013

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital		1,80,000	Cash		9,000
Bills Payable		72,000	Bank		18,000
Creditors		36,000	Stock		36,000
			Debtors		45,000
			Bills Receivable		36,000
			Furniture		18,000
			Plant		1,26,000

TOTAL		2,88,000	TOTAL		2,88,000

Dr. CASH/BANK A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	27,000	By Bills Payable	1,08,000
To Debtors A/c (Receipt)	1,44,000	By Drawings	21,600
To Cash Sales	63,000	By Rent, Rates & Taxes	36.000
To Bills Receivable	1,35,000	By Creditors(Payment)	63,000
To Commission Received		By Wages	36,000
		By Sundry Expenses	54,000
		By Balance c/d	50,400

TOTAL	3,69,000	TOTAL	3,69,000

Additional Information	Rs.
Debtors as on 31st March, 2015	72,000
Creditors as on 31st March, 2015	45,000
Bills Receivable as on 31st March, 2015	54,000
Bills Payable as on 31st March, 2015	90,000
Stock as on 31st March, 2015	54,000
Discount Allowed	1,800
Discount Received	3,600
Bills Receivable Endorsed	27,000
Bills Receivable in Hand Dishonoured during the year	9,000
Bills Receivable Endorsed Dishonoured	3,600
Bills Payable Dishonoured during the year	3,600

A5) Dr. TRADING A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Opening Stock		36,000	By Sales
To Purchase		2,25,000	Cash	63,000
To Wages		36,000	Credit	3,49,200	4,12,200

To Gross Profit		1,69,200	By Closing Stock		54,000

TOTAL		4,66,200	TOTAL		4,66,200

Dr. PROFIT AND LOSS A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Sundry Exps		54,000	By Gross Profit		1,69,200
To Rent, Rates & Tax		36,000
To Disc Allowed		1,800	By Disc Received		3,600
To NET PROFIT		81,000

TOTAL		1,72,800	TOTAL		1,72,800

BALANCE SHEET AS ON 31/03/2015

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital	1,80,000		Furniture		18,000
			Plant		1,26,000
Add: - NET PROFIT	81,000		Bills Receivable		54,000
Less: - Drawing	21,600	2,39,400	Debtors		72,000
			Closing Stock		54,000
Bills Payable		90,000	Cash/Bank		50,400
Creditors		45,000

TOTAL		3,74,400	TOTAL		3,74,400

WORKING NOTE: -Dr. DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	45,000	By Cash & Cheque Received	1,44,000
To Bills Receivable(Dishonor)	9,000	By Disc Allowed	1,800
To Creditors (Endorsed Bill Dishonored)	3,600	By Bills Receivable	1,89,000
To Credit sales (Bal Fig)	3,49,200
		By Balance c/d	72,000
TOTAL	4,06,800	TOTAL	4,06,800

Dr. CREDITORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash/Bank	63,000	By Balance b/d	2,000
To Disc Received	3,600	By Credit Purchase	30,000
To Bills Receivable(Endorsed)	27,000
To Bills Payable	1,29,600
To Balance c/d	45,000
TOTAL	2,68,200	TOTAL	2,68,200

Dr. BILLS RECEIVABLE A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	36,000	By Cash	1,35,000
To Debtors (Bal Fig)	1,89,000	By Debtors (Dishonoured)	9,000
		By Creditors (Endorsed)	27,000
		By Balance c/d	54,000
TOTAL	2,25,000	TOTAL	2,25,000

Dr. BILLS PAYABLE A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash	1,08,000	By Balance b/d	72,000
To Creditors (Dishonored)	3,600	By Sundry Creditors (Bal Fig)	1,29,600
To Balance c/d
TOTAL	2,01,600	TOTAL	2,01,600

Q6) Following Information is given:

PARTICULARS	01.01.2012	31.12.2012
Sundry Creditors	9,800	8,100
Sundry Debtors	19,300	20,500
Furniture	1500
Stock	11,600	12,300
Plant & Machinery	30,000

Summary of Cash Book

	Rs.		Rs.
To Balance b/d	5,000	By S. Creditors	31,000
To Receive From Debtors	78,000	By Wages	15,000
To Cash Sales	15,000	By Salaries	12,000
To Sales of Old Machinery	4,000	By Machinery	10,000
To Sales of Old Packing Boxes	600	By Investments	6,000
		By Drawings	6,000
		By General Exps.	17,000
		By Balance c/d	5,600
	1,02,600		1,02,600

Bad Debts written off during the year were Rs. 1500. Discount allowed were Rs. 2000 and received were Rs. 600. Depreciation on Machinery is to be 10% on the value of machinery on 31st December, 2011. Furniture is to be depreciated at 5%. Interest @6% is to be allowed on capital.Prepare Trading Account, Profit and Loss Account for 2002 and Balance Sheet as at December 31,2012.A6) Dr. TRADING A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Opening Stock		11,600	By Sales
To Purchase		29,900	Credit	82,700
To Wages		15,000	Cash	15,000	97,700

To Gross Profit		53,500	By Closing Stock		12,300

TOTAL		1,10,000	TOTAL		1,10,000

Dr. PROFIT AND LOSS A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Salaries		12,000	By Gross Profit		53,500
To General Exps		17,000	By Sale of Old packaging boxes		600
To Bad Debts		1,500	By Disc Received		600
To Depreciation
On Furniture (1500 x 5%)	75
On Machinery (36000 x 10%)	3,600	3,675
To Disc Allowed		2,000
To Interest on Capital (57600x6%)		3,456

To NET PROFIT		15069
TOTAL		54,700	TOTAL		54,700

BALANCE SHEET AS ON 31/12/2012

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital (Opening)	57,600		Furniture	1500
Add: Interest on Capital	3,456		Less: Depreciation	(75)	1,425
Add: - NET PROFIT	15,069		Plant & Machinery	30,000
Less: - Drawing	(6,000)	70125	Additions	10,000
				40,000
Bills Payable			Less: Sales	4,000
Creditors		8,100		36,000
			Less: Depn @ 10%	(3,600)	32,400
			Investments		6,000
			Sundry Debtors		20,500
			Closing Stock		12,300
			Cash/Bank		5,600
TOTAL		78,225	TOTAL		78,225

WORKING NOTE: -BALANCE SHEET AS ON 01/01/2012

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital (Bal Fig)		57,600	Furniture		1,500
			Plant & Machinery		30,000
			Bills Receivable
			Sundry Debtors		19,300
			Closing Stock		11,600
			Cash/Bank		5,000
Sundry Creditors		9,800

TOTAL		67,400	TOTAL		67,400

Dr. DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	19,300	By Cash & Cheque Received	78,000
To Credit sales (Bal Fig)	82,700	By Disc Allowed	2,000
		By Bad Debts	1,500

		By Balance c/d	20,500
TOTAL	1,02,000	TOTAL	1,02,000

Dr. CREDITORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash/Bank	31,000	By Balance b/d	9,800
To Disc Received	600	By Credit Purchase (Bal Fig)	29,900
To Balance c/d	8,100
TOTAL	39,700	TOTAL	39,700

Q7) A and B share profits and losses in the ratio of 3:2. Prepare Trading A/c: Profit and Loss A/c and Balance Sheet from the following: Cash Book: Bank Balance on 1st Jan.. 2001 Rs. 8000: A's drawing 9000: B's drawing Rs. 6000 paid to trade creditors. Rs. 60,000. paid against B/P Rs. 16,000: Wages Rs. 22,000: Salaries Rs. 10,000; Other trade expenses, Rs. 26,510; Received from trade debtors. Rs. 91,200; Received against B/P 16,090; Receipts from cash sales 31,620: cash in hand. Rs. 400. (On 31st December, 2002). There was no cash in hand on 1st Jan., 2002. Particulars of Assets & Liabilities:

PARTICULARS	01.01.2001	31.12.2001
A/s Capital	80,000	?
B's Capital	20,000	?
Stock	39,600	50,000
Creditors	50,000	38,710
Debtors	44,000	14,000
B/R	10,000	14,000
B/P	6,000	NIL
Premises	40,000	40,000
Furniture	2,400	2,400

Other Information: A and B will pay interest on drawing as Rs. 120 and Rs. 60. A and B are entitled to 5% interest on capital. B will get 6% Commission on the net profits remaining after such commission.Allow 5% depreciation on premises and furniture and create a reserve for bad debts amounting Rs. 2650. A7)Dr. TRADING A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Opening Stock		39,600	By Sales
To Purchase		40,000	Credit	1,00,000
To Wages		22,000	Cash	31,620	1,31,620

To Gross Profit		80,020	By Closing Stock		50,000

TOTAL		1,81,620	TOTAL		1,81,620

Dr. PROFIT AND LOSS A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Salaries		10,000	By Gross Profit		80,020
To Trade Exps		26,510	By Sale of Old packaging boxes
To R.D.D		2,650	By Disc Received
To Depreciation
On Furniture	120		By Interest on Drawings
On Premises	2,000	2,120	A	120
To Interest on Capital			B	60	180
A	4,000
B	1,000	5,000
To B’s Commission
33,920 x 6/106		1,920

To NET PROFIT
A	19,200
B	12,800	32,000

TOTAL		80,200	TOTAL		80,200

BALANCE SHEET AS ON 31/12/2012

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
A			Furniture	2,400
Capital (Opening)	80,000		Less: Depreciation	120	2,280
Add: Interest on Capital	4,000		Premises	24000
Add: - NET PROFIT	19,200		Less: Depreciation	2000	38,000
	1,03,200		Sundry Debtors	38,710
Less: - Drawing	9,000		Less: R.D.D	2,650	36,060
Less: Interest on Drawings	120	94,080
			Bills Receivable		14,000
B			Closing Stock		50,000
Capital (Opening)	20,000		Cash/Bank		400
Add: Interest on Capital	1,000
Add: Commission	1,920
Add: - NET PROFIT	12,800
	35,720
Less: - Drawing	6,000
Less: Interest on Drawings	60	29,660

Bank Overdraft		3,000
Creditors		14,000

TOTAL		1,40,740	TOTAL		1,40,740

WORKING NOTE: -Dr CASH/BANK A/C Cr

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance	8,000	By A/s Drawings	9,000
To Debtors	91,200	By B/s Drawings	6,000
To B/R	16,090	By Trade Crs.	60,000
To Cash sales	31,620	By B/P	16,000
To Bank Overdraft	3,000	By Wages	22,000
		By Salaries	1,000
		By Trade Exp.	26,510
		By Balance c/d	400
TOTAL	1,49,910	TOTAL	1,49,910

Dr. DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	50,000	By Cash & Cheque Received	91,200
To Credit sales (Bal Fig)	1,00,000	By Bills Receivable	20,090
		By Balance c/d	38,710
TOTAL	1,50,000	TOTAL	1,50,000

Dr. BILLS RECEIVABLE A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	10,000	By Cash	16,090
To S. Debtors (Bal Fig)	20,090	By Balance c/d	14,000
TOTAL	30,090	TOTAL	30,090

Dr. CREDITORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash/Bank	60,000	By Balance b/d	44,000
To Bills Payable	10,000	By Purchases	40,000
To Balance c/d	14,000
TOTAL	84,000	TOTAL	84,000

Dr. BILLS PAYABLE A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash	16,000	By Balance B/d	6,000
		By S. Creditors (Bal fig)	10,000
TOTAL	16,000	TOTAL	16,000

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