Page 13 - HA- SUBJECTIVE - Copy

Question 34:

Vijay commenced business as foodgrains merchant on 1st April, 2017 with a capital
of ₹4,00,000. On the same day, he purchased furniture for ₹80,000. From the following
particulars obtained from his books which do not conform to Double Entry principles, you
are required to prepare the Trading and Profit and Loss Account for the year ended 31st
March, 2018 and the Balance Sheet as on that date:

₹
Sales (including Cash Sales ₹2,00,000) 5,00,000
Purchases (including Cash Purchases ₹1,20,000 4,00,000
Vijay's Drawings (in cash) 40,000
Salaries to Staff 48,000
Bad Debts written off 4,000
Trade Expenses paid 16,000

Vijay used goods of ₹12,000 for private purposes during the year. On 31st
March, 2018, his Debtors amounted to ₹1,40,000 and Creditors ₹80,000.
Stock-in-Trade on that date was ₹1,60,000.