Page 170 - DCOM101_FINANCIAL_ACCOUNTING_I

Financial Accounting-I

Notes Interest 500
Commission 3,250
Provision Bad debts 750
Bank O/d 40,000
Salaries 11,000
Total 2,57,000 2,57,000
Additional Information
(a) Value of the stock on 31.12.96 `65,000

(b) Goods worth ` 800 for his personal use of the proprietor
(c) ` 400 of insurance paid is nothing but advance payment
(d) Salary ` 1,000 for the month of December 1996 not paid i.e. outstanding
(e) Charge depreciation:
(i) Building 2% per annum
(ii) Machinery 10% per annum

(iii) Furniture 15% per annum
(f) Maintain provision for doubtful debts 5% on sundry debtors
8. From the following information drawn from the books of M/s Sundaram & Co prepare
Trading, Profit & Loss account for the year ended 31st March, 2004 and Balance sheet as on

date.
Particulars Debit (`) Credit (`)
Sundaram’s Capital 1,81,000
Sundaram’s Drawings 36,000
st
Plant and Machinery Balance on 1 April 2003 1,20,000
Plant and machinery additions on 1 October, 2003 25,000
st
Stock opening 95,000
Purchases 7,82,000
Return Inwards 12,000
Sundry debtors 20,600
Furniture & Fixture 15,000
Freight duty 2,000
Rent Rate and Taxes 24,600
Printing stationery 3,800
Trade expenses 5,400
Sundry creditors 40,000
Sales 9,80,000
Return outwards 3,000
Postage & telegram 800
Provision for bad debts 400
Discounts 1,800
Rent of the premises sub let for the year upto 30 September 7,200
th
2004
Insurance charge 2,700
Salaries & wages 31,300
Cash in hand 6,200
Cash at bank 30,500
Carriage outwards 500
Total 12,13,400 12,13,400

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