Page 25 - Chapter-11.pmd

Accounts from Incomplete Records 461

Furniture and Fixtures 15,000 ?
Stock 25,000 ?
Motor Van 16,000 ?
(ii) Transaction during the year
Rs.
Cash received from debtors 80,000
Discount allowed to debtors 1,400
Bad debts written off 1,800
Cash paid to creditors 63,000
Discount allowed by creditors 1,000
Sales return 3,000
Purchases return 2,000
Expenses paid 6,000
Drawings 5,000
Rent paid 2,500
(iii) Other Information
Outstanding expenses Rs. 1,200. Charge 10 per cent depreciation on furniture and 5 per
cent on motor van.Dinesh informs that he sells goods at cost plus 40 per cent. A provision
of 5 per cent on debtors is to be created. Prepare his trading and profit and loss account and
balance sheet as on December 31, 2014

Books of Dinesh
Trading and Profit and Loss Account
for the year ending December 31, 2014
Dr. Cr.
Expenses/Losses Amount Revenues/Gains Amount
Rs. Rs.
Opening stock 25,000 Sales 89,800
Purchases 69,000 Less Returns (3,000) 86,800
Less Returns (2,000) 67,000 Closing stock 30,000
Gross profit c/d 24,800
1,16,800 1,16,800
Discount allowed 1,400 Gross profit b/d 24,800
Bad debts 1,800 Discount received 1,000
Expenses paid 6,000
Add Outstanding expenses 1,200 7,200
Rent paid 2,500
Depreciation on Furniture 1,500
Motor van 800 2,300
Provision for doubtful debts 2,430
Net profit (transferred to capital 8,170
account)
25,800 25,800

2015-16