Question

Illustration V: From the following Trial Balance of Mr. Garg as on 31st March, 2006, prepare Trading Account, Profit and Loss Account and Balance Sheet. TRIAL BALANCE Debit Balance Rs. Credit Balance Rs. Stock on 1st April, 2005 500 Capital 2,000 Purchases 1,500 Sales 3,500 Land and Building 2,000 Sunday Creditors 750 Bills Receivable 300 Commission 50 Wages 300 Bills payable 300 Machinery 800 Loan 600 Carriage Inward 100 Carriage Outward 100 Power 150 Salaries 200 Discount Allowed 30 Drawings 100 Insurance Premium 20 Cash at Bank 500 Cash in Hand 100 Investments 500 7,200 7,200 Adjustments 1. Stock as on 31st March 2006 is valued at Rs. 200. 2. Provide depreciation @ 10% on Machinery and @ 5% on Land and Building. 3. Outstanding salaries amounted to Rs.50. 4. Insurance premium is paid in advance to the extent of Rs.10. 5. Allow interest on Capital @ 6% per annum. 6. Interest on loan @ 12% per annum is due for one year.

          Illustration V: From the following Trial Balance of Mr. Garg as on
31st March, 2006, prepare Trading Account, Profit and Loss Account and
Balance Sheet.

TRIAL BALANCE
Debit Balance Rs. Credit Balance Rs.
Stock on 1st April, 2005 500 Capital 2,000
Purchases 1,500 Sales 3,500
Land and Building 2,000 Sunday Creditors 750
Bills Receivable 300 Commission 50
Wages 300 Bills payable 300
Machinery 800 Loan 600
Carriage Inward 100
Carriage Outward 100
Power 150
Salaries 200
Discount Allowed 30
Drawings 100
Insurance Premium 20
Cash at Bank 500
Cash in Hand 100
Investments 500
7,200 7,200

Adjustments
1. Stock as on 31st March 2006 is valued at Rs. 200.
2. Provide depreciation @ 10% on Machinery and @ 5% on Land
and Building.
3. Outstanding salaries amounted to Rs.50.
4. Insurance premium is paid in advance to the extent of Rs.10.
5. Allow interest on Capital @ 6% per annum.
6. Interest on loan @ 12% per annum is due for one year.

Illustration V: From the following Trial Balance of Mr. Garg as on
31st March, 2006, prepare Trading Account, Profit and Loss Account and
Balance Sheet.

TRIAL BALANCE
Debit Balance Rs. Credit Balance Rs.
Stock on 1st April, 2005 500 Capital 2,000
Purchases 1,500 Sales 3,500
Land and Building 2,000 Sunday Creditors 750
Bills Receivable 300 Commission 50
Wages 300 Bills payable 300
Machinery 800 Loan 600
Carriage Inward 100
Carriage Outward 100
Power 150
Salaries 200
Discount Allowed 30
Drawings 100
Insurance Premium 20
Cash at Bank 500
Cash in Hand 100
Investments 500
7,200 7,200

Adjustments
1. Stock as on 31st March 2006 is valued at Rs. 200.
2. Provide depreciation @ 10% on Machinery and @ 5% on Land
and Building.
3. Outstanding salaries amounted to Rs.50.
4. Insurance premium is paid in advance to the extent of Rs.10.
5. Allow interest on Capital @ 6% per annum.
6. Interest on loan @ 12% per annum is due for one year.

Added by Scott M.

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