Page 83 - DMGT403_ACCOUNTING_FOR_MANAGERS

Credit Balances

Debit Balances
Drawings
90,000
41,400
Goodwill
Bills Payable
Land and Building
1,80,000
91,500
Sundry Creditors
Plant and Machinery
7,950
Purchase Returns
1,20,000
3,45,000
9,000
Sales
Loose tools
6,000
Bills Receivable

1,20,000
Stock 1.1.2009

Purchase
1,53,000
Wages
60,000

3,600
Carriage Inwards 45,000 Capital Account 6,09,000
Carriage Outwards 4,500
Coal and Gas 16,800
Salaries 12,000
Accounting for Managers Rent, Rates and Taxes 8,400
Discount allowed 4,500
Cash at Bank 75,000
Notes Cash in Hand 4,200
Sundry Debtors 1,35,000
Repairs 5,400
Printing and Stationery 1,500
Bad Debts 3,600
Advertisements 10,500
Sales Returns 6,000
Furniture and Fittings 3,600
General Expenses 15,750

Additional Information
st
1. Closing stock on 31 December, 2009 was 1,80,000.
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, 2009
st
Particulars Particulars
To Opening Stock 1,20,000
To Purchases Less Returns By Sales Less Returns
(Rs.1,53,000 – 7,950) 1,45,050 (Rs. 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 Profit C/d 1,69,050
5,19,000 5,19,000

To Carriage Outwards 4,500 Contd...
To Salaries 12,000 By Gross Profit b/d 1,69,050
To Rent, Rates & Taxes 8,400 By Reserve for Discount on 2,250
Creditors @2 ½ %
(+) 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
78 LOVELY PROFESSIONAL UNIVERSITY
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 85,114
A/c)
1,71,300 1,71,300