Page 164 - DCOM101_FINANCIAL_ACCOUNTING_I

Financial Accounting-I

Notes Additional Information:

1. Closing stock on 31 December, 2007 was `1,80,000.
st
2. Depreciate Plant and Machinery at 5%, Loose Tools at 15% and Furniture and Fittings
at 5%.
3. Provide 2½% for Discount on Sundry Debtors and Creditors and 5% for Bad and Doubtful
Debts.
4. Outstanding Wages ` 4,500 and Rent and Taxes ` 2,550.
Solution:

In the Book of Mr. Ankit
Trading and Profit & Loss Account

for the year ending on 31 December, 2007
st
Particulars ` Particulars `
To Opening Stock 1,20,000
To Purchases Less Returns By Sales Less Returns
(`1,53,000 – 7,950) 1,45,050 (` 3,45,000 – 6,000) 3,39,000
To Wages 60,000 By Closing Stock 1,80,000
(+) O/s Wages 4,500 64,500
To Carriage Inwards 3,600
To Coal and Gas 16,800
To Gross Profi t C/d 1,69,050
5,19,000 5,19,000
To Carriage Outwards 4,500
To Salaries 12,000 By Gross Profi t b/d 1,69,050
To Rent, Rates & Taxes 8,400 By Reserve for Discount on 2,250
½
Creditors @2 %
(+) Outstanding 2,550 10,950
To Discount Allowed 4,500
To Repairs 5,400

To Printing & Stationary 1,500
To Bad Debts 3,600
(+) New Provision (D/D) 6,750
10,350
(+) Provision for Discount 3,206 13,556
To Advertisement 10,500
To General Expenses 15,750
To Depreciation on:
Plant & Machinery 6,000
Loose tools 1,350
Furniture & Fittings 180 7,530

To Net Profit (transferred to Capital A/c) 85,114
1,71,300 1,71,300

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