Page 85 - DMGT403_ACCOUNTING_FOR_MANAGERS

Accounting for Managers

Notes
Example: From the following Trial Balance of Mr. Das prepare Trading and Profit and
Loss account for the year ended 31 December, 2009 and the Balance Sheet as on that date after
st
taking in to account adjustments given below.
Trial Balance
st
as on 31 December 2009
Dr. Cr.
Particulars
Capital – 86,140
Drawings 3,400 –
Purchases and Sales 32,400 88,200
Returns 2,300 2,150
Carriage inwards 1,500 –
Lighting and heating 800 –
Water and gas 3,400 –
Stock as on 1.1.2009 7,300 –
Rent (office) 900 –
Wages and salaries 2,500 –
Electricity 1,300 –
Postage 200 –
Printing charges 700 –
Legal charges 480 –
Interest earned – 390
Furniture 19,100 –
Machinery 60,000 –
Buildings 35,000 –
Cash in hand 5,600 –
1,76,880 1,76,880

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%

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