Page 167 - Account 10

Solution:
Trading and Profit and Loss A/c of Ramesh & Bros.
Dr. For the Year ended 30-12-2075 Cr.

Particulars Amount Particulars Amount
To Opening stock 5,200 By Sales 20,000
To Purchase 15,500 Less: Returns 300 19700
To Carriage on purchase 900 By Closing stock 12000
To Wages 1,000 31700
To Gross profit c/d 9,100
31,700 By Gross profit b/d 9100
To Salaries 1,600 By Commission 3,200
To Tax 200 Less: Advance received 200 3,000
To Insurance 300
Less: Prepaid 50 250 By Rent 2,000
To Trade expenses 300 Add: accrued 500 2500
To Travelling expenses 500
To Depreciation on:
Building @ 10% 500
Machinery @ 10% 400 900
To New bad debt. @ 10% 400
To Net profit c/d 10,450
14,600 14,600

Balance Sheet of Ramesh & Bros.
As on 30-12-075

Capital and Liabilities Amount Assets Amount
Capital 16000 Cash 800
Add: Net profit 10450 26,450 Debtors 4,000
Creditors 2,000 Less. Bad debt 400 3,600
Unearned commission 200 Building 5,000
Less: Depreciation 500 4,500
Machinery 4,000
Less: Depreciation 400 3,600
Furniture 1,600
Bills receivables 2,000
Accrued rent 500
Insurance prepaid 50
Closing stock 12,000
28,650 28,650

166 Aakar’s Office Practice and Accountancy - 10 Final Accounts 167