Shri patil bansali submitted to you the following trial balance,which he has not been able to agree. Rewrite the trial balance and prepare trading and profit and loss account for the year ended 31.12.2020 and a balance sheet as on that date after giving effect to the undermentioned adjustments?

Question

Answer

Trial Balance as on 31.12.2020:

| Particulars | Debit (Rs.) | Credit (Rs.) |
| --- | --- | --- |
| Cash | 50,000 | - |
| Machinery | 2,00,000 | - |
| Building | 5,00,000 | - |
| Furniture | 20,000 | - |
| Stock (1.1.2020) | 75,000 | - |
| Purchases | 4,00,000 | - |
| Sales | - | 6,00,000 |
| Wages | 50,000 | - |
| Rent | 20,000 | - |
| Carriage Inward | 10,000 | - |
| Carriage Outward | - | 5,000 |
| Salaries | 30,000 | - |
| Bad Debts | 5,000 | - |
| Discount Allowed | 3,000 | - |
| Discount Received | - | 2,000 |
| Interest Received | - | 1,000 |
| Capital | 3,00,000 | - |
| Drawings | - | 20,000 |
| Debtors | - | 1,20,000 |
| Creditors | 1,00,000 | - |
| Prepaid Rent | 5,000 | - |
| Insurance | 2,000 | - |
| Bank Overdraft | 50,000 | - |
| Provision for Bad Debts | 2,000 | - |
| ---- | ---- | ---- |
| Total | 13,40,000 | 13,40,000 |

Adjustments:

1. Stock on 31.12.2020 was valued at Rs. 90,000.
2. Depreciate Machinery by 10% and Building by 5%.
3. Outstanding Wages amounted to Rs. 5,000.
4. Provide for Bad Debts at 5% on Debtors.
5. Accrued Rent amounted to Rs. 1,000.
6. Interest on Bank Overdraft to be provided for Rs. 2,000.

Trading and Profit & Loss Account for the year ended 31.12.2020:

| Particulars | Amount (Rs.) |
| --- | --- |
| Gross Sales | 6,00,000 |
| Less: Returns Outward | 10,000 |
| Net Sales | 5,90,000 |
| Cost of Goods Sold: |
| Opening Stock | 75,000 |
| Add: Purchases | 4,00,000 |
| Less: Returns Inward | 5,000 |
| Less: Closing Stock | 90,000 |
| Total Cost of Goods Sold | 3,80,000 |
| Gross Profit | 2,10,000 |
| Add: Other Income: |
| Interest Received | 1,000 |
| Less: Carriage Inward | 10,000 |
| Less: Wages | 50,000 |
| Less: Rent | 20,000 |
| Less: Salaries | 30,000 |
| Less: Discount Allowed | 3,000 |
| Less: Bad Debts | 5,000 |
| Depreciation: |
| Machinery @ 10% | 20,000 |
| Building @ 5

Answer

Not match

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