Prepare a trading and profit and loss account for the year ending March 31, 2017. from the balances extracted of M/s Rahul Sons. Also prepare a balance sheet at the end of the year.
| Account Title | Amount ₹ | Account Title | Amount ₹ |
|---|
| Stock | 50,000 | Sales | 1,80,000 |
| Wages | 3,000 | Purchases return | 2,000 |
| Salary | 8,000 | Discount received | 500 |
| Purchases | 1,75,000 | Provision for doubtful debts | 2,500 |
| Sales return | 3,000 | Capital | 3,00,000 |
| Sundry Debtors | 82,000 | Bills payable | 22,000 |
| Discount allowed | 1,000 | Commission received | 4,000 |
| Insurance | 3,200 | Rent | 6,000 |
| Rent Rates and Taxes | 4,300 | Loan | 34,800 |
| Fixtures and fittings | 20,000 | | |
| Trade expenses | 1,500 | | |
| Bad debts | 2,000 | | |
| Drawings | 32,000 | | |
| Repair and renewals | 1,600 | | |
| Travelling expenses | 4,200 | | |
| Postage | 300 | | |
| Telegram expenses | 200 | | |
| Legal fees | 500 | | |
| Bills receivable | 50,000 | | |
| Building | 1,10,000 | | |
| 5,51,800 | | 5,51,800 |
Adjustments
- Commission received in advance ₹ 1,000 .
- Rent receivable ₹ 2,000 .
- Salary outstanding ₹ 1,000 and insurance prepaid ₹ 800.
- Further bad debts ₹ 1,000 and provision for doubtful debts @ 5% on debtors and discount on debtors @ 2%.
- Closing stock ₹ 32,000 .
- Depreciation on building @ 6% p.a.