Page 360 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Unit 14: Preparation of Final Accounts

Solution: Notes
Trading and Profit & Loss Account of Gopal Oil Company
(For the year ending December 31, 2006)
Particulars Particulars
To Opening Stock 30,000 By Sales 1,75,000
To Purchases 60,900 By Closing Stock 35,000
(–) Returns Outward 100 60,800 By Discount 2,200
To Wages 55,200 By Transfer Fee 100
To Fuel 2,570
To Carriage Inwards 1,175
To Advertisement 3,000
To Rent and Rates 6,000
To Debenture Interest 625
(+) Outstanding 625 250
1,
To Discount 1,500
To General Expenses 4,400
To Bad Debts 1,030
To Provision for Bad Debts 400
To Provision for Discount on Debtors 490
To Miscellaneous Expenses 3,000
To Insurance 1,000
To Depreciation on Plant & Machinery 2,250
To Loose Tools 1,900
To Net Profit 36,335
2,12,300 2,12,300
Balance Sheet of Gopal Oil Co. Ltd.
As on December 31, 2006
Liabilities Assets
Share Capital Fixed Assets
Authorized Capital Goodwill 28,000
2000 Shares of 100 each 2,00,000 Building at Cost 70,000
Issued and Subscribed Capital Plant & Machinery 25,000
1000 equity shares of Less: Depreciation 2,250 22,750
100 each fully paid up 1,00,000 Investments
Reserves and Surplus: Current Assets and Loans Advances:
Profit and Loss Account 36,335 Current Assets:
Secured Loans
5% Debentures 25,000 Loose Tools 4,100
Outstanding Interest: 625 Stock in Trade 35,000
Unsecured Loans: Sundry Debtors 20,000
Current Liabilities and Provisions: Less: Provision for debts 400
Creditors 8,000 19,600
Bank Overdraft 12,000 Less: Provision for 19,110
Discount on Debtors 490
Cash in hand and Bank 3,000
1,81,960 1,81,960

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