Mr. Shewag carries on a retail business and his Trial Balance on Mar 31, 2009 is as follows: Particu

Mr. Shewag carries on a retail business and his Trial Balance on Mar 31, 2009 is as follows:

Particulars

Dr. Rs

Cr. Rs

Purchases

11,31,250

—

Sales

—

14,13,300

Returns Inwards

8,500

—

Returns Outwards

—

6,240

Provision for Doubtful Debts

—

10,400

Sundry Debtors

76,400

—

Sundry Creditors

—

51,052

Bills Payable (promissory notes to be paid)

—

17,900

Stock in the beginning

1,13,450

—

Wages

40,274

—

Salaries

37,150

—

Furniture

30,150

—

Alternations to shop

9,000

—

Postage, Stationery, Insurance, etc.

26,452

—

Heading and Lighting

4,700

—

Trade Expenses

20,628

—

Rent, Rates and Taxes

27,034

—

Bad Debts

1,050

—

Loan at 15% (to Ajay, Dec 1, 2008)

6,000

—

Investments (at cost)

23,000

—

Dividends from Investments

—

3,650

Unexpired Insurance

1,048

—

Cash at Hand and at Bank

31,504

—

Bills Receivable (amount receivable on Promissory Notes

38,140

—

Promissory Notes

38,140

—

Capital Account

—

1,54,000

Drawings Account

32,000

—

Outstanding Wages

—

4,038

Rent Accrued but not Paid

—

1,500

Depreciation on Furniture

3,350

—

Additions to Furniture

1,000

—

16,62,080

16,62,080

Prepare the Trading and Profit and Loss Account for the year ended on Mar 31, 2009 and a Balance Sheet on that date after taking into consideration the following:

  1. Sundry Debtors include an item of Rs 500 for goods supplied to the proprietor and on item of Rs 1,200 due from a customer who has become insolvent.
  2. Provision for doubtful debts is to be maintained at 5% of the Sundry Debtors.
  3. One-fifth of alternations to the shop is to be written off.
  4. Goods of the value of Rs 2,000 have been destroyed by fire and the insurance company had admitted the claim for Rs 1,400 only.
  5. Bills receivable include a dishonored promissory note for Rs 5,300.
  6. Stock at the end was Rs 1,21,040.
  7. An intimation from the bank that a customer’s cheque for Rs 2,000 had been dishonored is still to be entered in the books.

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