Page 19 - Chapter-11.pmd

Accounts from Incomplete Records 455

Rs.
Receipt from debtors 57,500
Cash sales 45,000
Cash purchases 25,000
Wages paid 5,000
Salaries to staff 17,500
Trade expanses 6,500
Electricity bill of factory 7,500
Drawings of Surabhi 3,000
Cash paid to creditors 42,000
Discount allowed 1,200
Discount received 3,000
Bad debts written-off 1,300
Cash balance at end of year 20,000
Mrs. Surabhi used goods worth 2,500 for private purposes, which is not recorded in
the books. Charge depreciation on furniture 10% and machinery 20% p.a. on
December 31, 2013 her debtors were worth 70,000 and creditors Rs. 35,000, stock in trade
was valued on that date at Rs. 25,000.
Solution
Books of Mrs. Surabhi
Trading and Profit and Loss Account
for the year ended December 31, 2013
Dr. Cr.
Expenses/Losses Amount Revenues/Gains Amount
Rs. Rs.
Opening stock 20,000 Sales 45,000
Purchases :
Cash 25,000 Credit 1,30,000 1,75,000
Credit 80,000 2 Closing stock 25,000
1,05,000
Less Goods used for (2,500) 1,02,500
private use
Wages 5,000
Electricity bill of factory 7,500
Gross profit c/d 65,000
2,00,000 2,00,000
Salaries 17,500 Gross profit b/d 65,000
Trade expenses 6,500 Discount received 3,000
Discount allowed 1,200
Bad debts 1,300
Depreciation:
Furniture 1,000
Machinery 4,000 5,000
Net profit (transferred 36,500
to capital account)
68,000 68,000

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