1. Assignment No 6
Q2. Following is the Trial Balance extracted from the books of XYZ as on December 31st
2010.
Particulars Debit Particulars Credit
Plant and Machinery $20000 Capital
$80000
Wages $34500 Creditor
$44560
Salaries $15,850 Bank loan
$15000
Furniture $10,000 Purchase Return $1740
Freight on purchase $1860 Sales $250850
Freight on Sales $2140 Provision for Bad Debts $2000
Building $24000
Manufacturing Expenses $9,500
Insurance & Taxes $4250
Goodwill $25000
General Expenses $8200
Factory Fuel & power $1280
Debtors $78200
Factory lights $950
Opening stock $34200
Motor car $12000
Purchase $102000
Sales return $3100
Bad Debts $1400
Interest and Bank Charges $400
Cash at bank $4200
Cash in hand $1120
Adjustments
1. Stock in hand on 31st
December 2010 was valued at $30500
2. Depreciate plant & machinery by 10%; furniture by 5%; Motor car by $1000
3. Create provision for Bad Debts @ 5% on debtors
4. A commission of 1% on the gross profit is to be provided for work manager
Q3. The followings is the Trial Balance of M/s ABC as on 31st
March 2011. Prepare
Trading and Profit and Loss Account for the Year ended 31st
March 2011 and a
Balance sheet as on date.
Particulars Debit Credit
Capital 100000
Building 15000
Drawings 18000
Furniture & Fitting 7500
Motor van 25000
2. Loan from Mr. A @ 12% 15000
Sales 100000
Interest paid on Mr. A’s Loan 900
Purchases 75000
Opening Stock 25000
Expenses 15000
Wages 2000
Insurance 1000
Commission 7500
Debtors & Creditors 28100 10000
Bank 20000
Adjustment
1. The closing Stock on 31st
March 2011 $32000
2. Outstanding wages $500
3. Prepaid insurance $300
4. Commission received in advance $800.
5. Depreciate Building by 2.5%; Furniture by 10%; Motor van by 10%
6. Balance of interest due on the loan is also to be provided for.
Q4.Trial Balance of M/s PQRS as on March 31st
2011 was as follows
Particulars Debit Particulars Credit
Cash 1000 Capital 22000
Bank 5000 Sales 125000
Wages 8000 Creditors 15000
Salaries 25000
Furniture 15000
Rent 13000
Debtor 15500
Bad Debts 4500
Purchases 75000
Adjustments
1. Rent for one month is paid in advance
2. Closing stock as on 31st
March 2011 amounted to $10000
3. Wages Outstanding amounted to $500
4. Salaries include $5000 paid in advance to an employee
5. Furniture was to depreciated @10%p.a.
6. Debtors included bad debts $2500
Q5. The Following is Trial Balance of M/s KLMN ltd as on 31st
March 2011
Particulars Debit Credit
Capital 100000
Plant & Machinery 78000
Furniture 2000
Purchase and Sales 60000 127000
Returns 1000 750
Opening Stock 30000
3. Discount 425 800
Debtors & Creditors 45000 25000
Salaries 7550
Wages 10000
Carriage outward 1200
Provision for Bad and Doubtful Debts 525
Rent rates & taxes 10000
Advertisement exp 2000
Cash 6900
Adjustments
1. Closing Stocks $34220
2. Provision for doubtful debts is to be kept at $500
3. Depreciate plant and machinery @10%p.a
4. The proprietor has taken goods worth $5000 for personal use and additionally
distributed goods worth $1000 as sample
5. Purchase of furniture $920 has been pass through purchase book
