Question

From the following Trading Balance of M/s Ajay and Vijay you are required to prepared Trading and Profit and Loss Account for the year ended 31^st March, 2009 and Balance Sheet as on that date

Trial Balance as on 31^st March , 2009

Adjustments:

1) The closing stock is valued at Rs 31,000.

2) Outstanding expenses were wages Rs. 1,400, salaries Rs 800.

3) Depreciate Plant and Machinery by 10%.

4) Insurance at Rs 500 is paid in advance.

5) Provide for further bad debts of Rs 1,500.

6) Commission due but not received Rs 1,200.

Answer 1

Trading Account

For the year ended Mar. 31 2009

Profit and loss Account

for the year ended March 31, 2009

Balance Sheet

as on March 31, 2009