Extracted text: From the following balances and given adjustments prepare Trading account, Profit and Loss account for the year ended 31st Dec, 2018*and Balance Sheet as on that date Reserve for bad debts. Rs. 220,000 700,000 Trade expenses... 180,000 Discount (Cr.). 90,000 Trade debtors.... Rs. 5,000 Capital. . Opening stock... Plant & machinery 2,500 500 10,00,000 200,000 Purchases... 60,000 Cash:. 190,000 Bad debts 200,000 Prawings.. Sales.. Wages . Trade creditors. 5,000 50,000 15,00,000 Salaries.. Land & building. Bill payable.. 300,000 65,000 Fumiture. 46,000 1,000 150,000 50,000 30,000 10% investments (on 1-7-2018).. Bank loan... Bills receivable Prepaid insurance General reserve. 32,000
Extracted text: Adjustments: Stock as on 31-12-2018 Rs. 350,000 Bad debts Rs. 2,000 and create provision for Bad debts @5% on trade debtors 1. Machinery was purchased on 1-1-2018 and Rs 10,000 was spent on its installation but this amount has been included in wages. wages O O Machinerye iv. Depreciate plant & machinery @ 10% Ans: GP Rs. 620,000; NP Rs. 397,600 and B/S total Rs. 13,80,600 100000