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+1 vote
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in Accounts by (34 points)
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On 31st March, 2020 the following Trial Balance was prepared from the books of Manpreet:

Debit Balance:

 furniture ..... 3,400

building.....21,700

drawing.......4,200

cash at bank......2,470

wages ......31,250

discount allowed......2,640

bank charges........90

salaries.......5,610

purchase......1,32,700    

opening stock.......40,200

cash in hand......150

sales return.....1,250

carriage inward......3,400

machinery......14,600

sundry debtors.....43,800

bad debts.....1,000

insurance......1,250

rent.....2,450

bills receivable.....2,500

advertisement......3,500

credit balance:

capital.....1,00,000

discount received......2,000

bank loan......10,000

purchase return......970

sundry creditors......12,450

sales.......1,91,940

provision for doubtful debt....800

  

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2020 and also

the Balance Sheet as at that date after making the following adjustments:

(i) Closing Stock at cost was 35,000 whereas its net realisable value (market value)

was 3 30,000.

(ü) A new machine was purchased for 3,000 on 1st October, 2019 but it was not paid for

and no entry was passed in the books.

(ui) Wages include 3 500 paid for the installation of machinery.

(w) Provision for Doubtful Debts was raised to 1,400 and further bad debts of 7 300 were

written off.

(v) In the month of March, 2020, a fire broke out and destroyed stock to the value of

38,000. The insurance company admitted claim for loss of stock to the tune of 5,000

only and the amount was paid in April, 2020,

(vi) Outstanding wages were ... 700 while outstanding salaries amounted to ? 500.

(vii) Prepaid insurance was ...250 and prepaid advertisement ....500.

(viii) Machinery was depreciated by 10% and furniture by 15%.

3 Answers

+1 vote
by (40 points)
selected by
 
Best answer
hopes you can understand this solution
image
by (10 points)
Don't you think dep. On machinery is wrong
Like mac. Is 14600
After 10% dep. Is should hve to be 1460
Don't u think so ??!??
by (10 points)
as the rate of depreciation is given without p.a , it will be charged for the whole year irrespective of the date of purchase
+1 vote
by (23 points)
imageimageimageBalnce sheet is matching

+3 votes
by (40 points)

Hope this helps you

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