Q.5 On 31st March,2020, the following trial balance of Rama Rao was taken out. Prepare final accounts for the year after making the following adjustments: (a) Depreciation : 5% of plant and machinery...

Extracted text: Q.5 On 31st March,2020, the following trial balance of Rama Rao was taken out. Prepare final accounts for the year after making the following adjustments: (a) Depreciation : 5% of plant and machinery and 10% of Fixtures and fittings. (b) Reserve for bad debts 5% on sundry debtors (c) Insurance unexpired on 31st March,2020 Rs. 170 (d) Outstanding wages Rs. 500 and salaries Rs. 300 Trial Balance Rs Dr Balances Plant & Machinery Fixtures and fittings Factory fuel & power Rs. Carriage on purchases 897 55000 Discount 422 1720 Drawings account 6820 542 Stock as on 01.04.2019 21725 Office salaries 3745 Manufacturing expenses 2680 Lighting ( factory) Travelling expenses Carriage on sales 392 Sales returns 7422 925 Insurance 570 960 Closing Stock Cr.Balances : Rent outstanding 16580 Cash at Bank 2245 Cash in hand 68 150 93230 Sundry Debtors Purchases ( Adjusted) Wages Rent & Taxes 47800 Rama Rao"s Capital 66710 Sales 126177 9915 Sundry creditors 22680 1915 Purchasae Returns 3172 Infinix HOT 10 Office Expenses Bills payable 6422 2778