Final Accounts - Book keeping 2015 Paper

1. The following is the Trial balance of Shri Narayan, as on 31.03.2014. You are requested to prepare Trading and Profit & Loss Account for the year ended 31.03.2014 and Balance Sheet as on that date after making the necessary adjustments.
S.N.	Particulars	Debit (Rs.)		S.N.	Particulars	Credit (Rs.)
1	Sundry Debtors	500000		1	Sundry Creditors	200000
2	Outstanding liability for expenses	55000		2	Capital Account	1443000
3	Wages	100000		3	Sales	1987500
4	Carriage outwards	110000
5	Carriage inwards	50000
6	General Expenses	70000
7	Cash Discounts	20000
8	Bad debts	10000
9	Motor car	240000
10	Printing & Stationery	15000
11	Furniture & fittings	110000
12	Advertisement	85000
13	Insurance	45000
14	Salesman's commission	87500
15	Postage & Telephone	57500
16	Salaries	160000
17	Rates & Taxes	25000
18	Drawings	20000
19	Purchases	1550000
20	Stock as on 01.04.2013	250000
21	Cash at Bank	60000
22	Cash in hand	10500
	Total	3630500			Total	3630500
	The following adjustments are to be made:
	1. Stock as on 31.03.2014 was valued at Rs.7,25,000
	2. Provision for Bad and Doubtful debts is to be created at 5 % on Sundry Debtors.
	3. Depreciate i) Furniture & Fittings by 10 %.   Ii) Motor Car by 20 %
	4. Shri Narayan had withdrawn goods worth Rs.25,000 during the year.
	5. Sales include Goods worth Rs.75,000 sent out to Om & company on approval and remaining unsold on 31.03.2014.  The cost of goods was Rs.50,000.
	6. The salesmen are entitled to a commission of 5 % on total sales.
	7.Debtors includes Rs.25,000 bad debits.
	8. Printing & Stationery expenses of Rs.55,000 related to 2012-13 had not been provided in that year but was paid in this year by debiting outstanding liabilities.
	9. Purchases include purchase of Furniture worth Rs.50,000 .
Answer:
	Trading Account
S.N.	Particulars	Amount Rs.		S.N.	Particulars	Amount (Rs.)
1	To Opening Stock	250000		1	By Sales - 1987500
2	To Purchases  - 1550000				(-) unsold - 75000	1912500
	(-) Furniture - 50000			2	By Clo stock - 725000
	(-) Drawings - 25000	1475000			(+) unsold  - 50000	775000
3	To Wages	100000
4	To Carriage Inwards	50000
5	To Gross Profit	812500
	Total	2687500			Total	2687500
	Profit & Loss Account
S.N.	Particulars	Amount Rs.		S.N	Particulars	Amount (Rs.)
1	To Carriage outwards	110000		1	By Gross Profit	812500
2	To General Expenses	70000
3	To cash discounts	20000
4	To Bad debts -10000
	(+) Bad debts (adj) -25000	35000
5	To Printint & Stationery	15000
6	To Advertisement	85000
7	To Insurance	45000
8	To Salesman's commission - 87500 + 8125 (outstanding)	95625
9	To Postage & Telephone	57500
10	To Salaries	160000
11	To Rates & Taxes	25000
12	To Depreciation on Furniture & Fittings (10 % on {110000+50000)	16000
13	To Depreciation on Motor Car @ 20 % on 240000	48000
14	To RBDD - Reserve for Bad & Doubtful Debts	20000
15	To Net Profit	10375
	Total	812500			Total	812500
	Balance Sheet
S.N.	Capital & Liabilities	Amount Rs.		S.N	Assets	Amount (Rs.)
1	Capital - 1443000			1	Sundry Debtors - 500000
	(-) Printing & Stationery of last year - 55000				(-) Bad Debts - 25000
	(-) Drawings  - 20000				(-) unsold goods - 75000
	(-) Drawings (goods) -25000				(-) RBDD - 20000	380000
	(+) Net Profit - 10375	1353375		2	Furnitures & Fittings - 110000
					(+) Adj- addition - 50000
2	Sundry Creditors	200000			(-) Depreciation - 16000	144000
3	Outstanding Salesman commission	8125		3	Motor Car - 240000
					(-) Depreciation - 48000	192000
				4	Cash at Bank	60000
				5	Cash on hand	10500
				6	Closing Stock - 725000
					(+) unsold - 50000	775000
	Grand Total	1561500			Grand Total	1561500