Page 166 - DCOM101_FINANCIAL_ACCOUNTING_I

Financial Accounting-I

Notes Additional Information

1. Closing stock amounted to ` 5,100
2. Outstanding expenses wages ` 700, Rent- ` 300

3. Prepaid Printing charges ` 200.
4. Interest earned but not received ` 100
5. Depreciate buildings @ 2% Machineries 5% and furniture 10%
Solution:

Trading and Profit and Loss Account
st
for the year ended 31 December 2006
Particulars ` Particulars `
To opening stock 7,300 By Sales 88,200
To Purchases 32,400 (–) Returns 2,300 85,900
(–) Returns 2,150 30,250 By Closing stock 5,100
To Carriage inwards 1,500
To Water & gas 3,400
To Wages & salaries 2,500
(+) Outstanding 700 3,200
To Lighting & heating 800
To Gross profi t c/d 44,550
91,000 91,000
By Gross Profi t b/d 44,550
By Interest earned 390
To Rent 900 (+) Interest earned but not
received
(+) Outstanding 300 1,200 100 490
To Electricity 1,300
To Postage 200
To Printing charges 700
(–) Prepaid 200 500
To Legal charges 480
To Depreciation on
Buildings 700
Machinery 3,000
Furniture 1,910 5,610
To Net Profi t
(Transferred to capital 35,750
a/c)
45,040 45,040

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