CHAPTER: FINAL ACCOUNT OF A SOLE TRADERS

TRADING A/C
(For the year ending 31st Mar………)
Particulars Amt. Particulars Amt.
Opening Stock xxx Sales xxx
(balance goods beginning of the (-)Sales Return xxx
year) (Return Inward) xxx
Purchase xxx
(-) Purchase Return xxx
(Return Outward) xxx
Wages xxx
Wages & Salary xxx
Productive wages xxx
Manufacturing Wages xxx
Direct Wages xxx
Carriage Expenses xxx
Carting Charges xxx
Carriage inward xxx
Expenses On Purchase xxx
Internal Transporting Expenses xxx
Motive Power xxx
Electric Power xxx
Fuel and Power xxx
Gas & Water xxx
Coal & Cock xxx
Oil & lubricant xxx
Production Tax xxx
Excise Duty xxx
Import Tax xxx
Royalty xxx
Octroi xxx
Manufacturing Expenses xxx
Factory Rent xxx
Any Expenditure of Factory xxx
(Factory Expenses)
Haulage (Weighting) xxx
Railway Freight xxx Closing Stock xxx
Salary of factory Manager xxx (Balance Goods at the end)
Gross Profit xxx Of the Year)
(Transfer to Profit & Loss A/c.)
XXXXX XXXXX

PROFIT & LOSS A/C

1
 (For the year ending 31st Mar………)
Particulars Amt. Particulars Amt.
Interest paid up xxx Gross Profit xxx
Rent paid up xxx (Transfer from Trading A/c)
Discount paid up xxx Interest Received xxx
Commission Paid up xxx Rent Received xxx
Interest paid up on loan xxx Discount Received xxx
Interest paid up on Debenture xxx Commission Received xxx
Office rent xxx Interest Received on Investment xxx
Office Expenses xxx Interest Received on Employees
Depreciation on Assets xxx Provident fund Investment xxx
Preliminary Exp. write off xxx Dividend Received
Goodwill write off xxx Share Transfer fee xxx
Trade mark write off xxx Admission Fee xxx
Salary xxx Sale of Application form xxx
Salary and Wages xxx Sundry Income xxx
Unproductive Wages xxx (Misc. Receipts other receipts) xxx
Indirect Wages xxx Recovery of old debts xxx
Trading Expenses xxx Government
General Expenses xxx xxx
Sundry Expenses xxx xxx
Miscellaneous Expenses xxx
Carriage outward xxx
Carriage Expenses on sale xxx
Expenses on sale xxx
Commission of selling Agent xxx
Audit fee xxx
Printing & Stationery xxx
Postage & Telegram xxx
Telephone Bill xxx
Advertisement xxx
Travelling Expenses xxx
Bank Charges xxx
Contribution to Employees xxx
Provident Fund
Lighting bill/Electricity charges xxx
Management Expenses xxx
Administrative Expenses xxx
Local Tax xxx
Municipal Tax xxx
Sale Tax xxx
Export Tax xxx
Honorarium to Secretary xxx
Insurance Premium xxx
Repairing & Maintenance xxx
Allowances to Directors xxx
Directors Fee xxx
2
Welfare Expenses xxx
Loss in weight xxx
Old bad Debts xxx
(+) New bad debts xxx
(+) New bad debts reserve xxx
xxx
(-) Old bad debts reserve xxx
xxx
Professional Tax xxx
Net Profit xxx
(Transfer to capital a/c)

XXXXX XXXXX

BALANCE SHEET
(As on 31st march………)
liability amt assets amt
Bills payable *** Cash in hand ***
Bank overdraft *** Cash at bank ***
Sundry creditor *** Bills receivable ***
Loan to mortgage *** Short term investment ***
General reserve and fund *** Sundry debtor ***
Outstanding expenses *** Stock in trade ***
Income received in advance *** Plant and machinery ***
Capital *** Furniture ***
Add NP *** Land and building ***
Add int on cap*** Receivable income ***
------------- Good will ***
*** ***
Less drawing ***

*** ***

3
 IMPORTANT ADJUSTMENT

IMPORTANT ADJUSTMENT
SR NO ADJUSTMENT 1ST EFFECT 2ND EFFECT
1 Closing stock(if two values Credit side of Assets side of
are given which ever is less trading account balance sheet
taken)
2 Unrecorded purchase Add in purchase Add in creditors
on debit side of on liability side of
trading a/c balance sheet
3 Unrecorded sales Add in sales on Add in debtors on
credit side of assets side of
trading a/c balance sheet
4 Outstanding/unpaid/accrued/ Add in particular On liability side
Payable exp. expenses on debit of balance
side of trading a/c
or profit and loss
a/c.
5 Prepaid/ unexpired/ paid Deduct from On assets side of
In advance exp. particular balance sheet.
expenses on debit
side of trading or
profit and loss
a/c.
6 Outstanding / un received/ Add in particular On assets side of
Receivable income income on credit balance sheet
side of profit and
loss a/c.
7 Pre received / unexpired/ Deduct from On liability side
Received in advance income particular of balance sheet.
Income on credit
side of profit and
loss a/c
8 Goods distributed as free Credit side of Debit side of
sample trading a/c. profit and loss a/c

9 Un insured goods lost by fire/ Credit side of Debit side of

accident / theft etc… trading a/c.(full profit and loss a/c
value) (full value)
10 insured goods lost by fire/ Credit side of A ) debit side of
accident / theft etc… trading a/c.(full profit and loss a/c
value) (actual loss)
B ) assets side of
balance sheet
(claim receivable)
11 Provision for director fees Debit side of On liability side
/ audit fees / secretaries profit and loss a/c of balance sheet.
4
 honorarium
12 Bad debts and RDD Add in old bad Deduct new bad
debts on debts and new
Debit side of RDD from
profit and loss a/c debtors on assets
side of balance
sheet.

13 Provision for discount on Add in discount Deduct from

debtors on debit side of debtors after RDD
profit and loss a/c on assets side of
balance sheet.

14 Provision for discount on Add in discount Deduct from

creditors on credit side of creditors on
profit and loss a/c liability side of
balance sheet.

15 Depreciation on fixed Debit side of Deduct from

Assets profit and loss a/c particular assets
from balance
sheet

16 Depreciation on dead stock Debit side of Deduct from dead

profit and loss a/c stock From
balance sheet
17 Written of goodwill patents/ Debit side of Deduct from
Trade mark / copy writes / profit and loss a/c particular item on
Preliminary exp. Etc… assets side of
balance sheet.

18 Revaluations of loose tools Debit side of Deduct from

profit and loss a/c loose tools on
assets side of
balance sheet.

19 Interest on capital Debit side of Add in capital on

profit and loss a/c liability side of
balance sheet
20 Interest on drawing Credit side of Deducted from
profit and loss a/c capital on liability
side of balance
sheet.
21 Managers commission Debit side of Liability side of
profit and loss a/c balance sheet
22 Goods withdrawn by Deduct from Add in closing
proprietor debtors on assets stock (at cost) in
(if such goods are with side of balance trading a/c and
customer on the last day of sheet. balance sheet
accounting year awaiting
their approval)

5
Q 1 Following trial balance is drawn from the books of shree gajanan on 31st march
2013
Particulars Debit credit
Opening stock 50,000
Purchase 1,80,000
Return outwards --------- 4,500
Sales --------- 3,00,000
Return inwards 2,000
Carriage inwards 4,500
Cash in hand 77,900
Cash at bank 61,000
Wages 2,500
Printing and stationery 4,600
Discount paid 5,00
Discount received ------- 4,00
Bad debts 1,600
Insurance 2,600
Investment 35,000
Interest received --------- 4,000
Bills payable ---------- 7,000
Debtors 55,000
Creditors -------- 1,25,000
Capitals -------- 1,20,000
Bills receivable 20,000
Postage and telegram 4,00
Commission 2,50
Interest paid 1,500
Repairs 5,00
Lighting charges 5,00
Telephone charges 1,50
Carriage outwards 4,00
Motor car 60,000

5,60,900 5,60,900

Prepare trading and profit and loss account and balance sheet as on 31st march 2013 and the
following adjustment have to be taken into consideration.
Adjustment:-
1 ) closing stock Rs 32,500
2 ) outstanding wages and interest Rs 100 and Rs 200 respectively
3 ) depreciation charge on motor car @ 5% p.a
4 ) accured interest on investment @ 5 %
5 ) Mke a provision on bad debts RS 1000

Q 2 Following trial balance is drawn from the books of shree gajanan on 31st march
2014
Particulars Debit credit
Opening stock 1,00,000
Purchase 3,60,000
Return outwards --------- 9,000
Sales --------- 6,00,000
Return inwards 4,000
Carriage inwards 9,000
6
 Cash in hand 1,55,800
Cash at bank 1,22,000
Wages 5,000
Printing and stationery 9,200
Discount paid 1,000
Discount received ------- 8,00
Bad debts 3,200
Insurance 5,200
Investment 70,000
Interest received --------- 8,000
Bills payable ---------- 14,000
Debtors 1,10,000
Creditors -------- 2,50,000
Capitals -------- 2,40,000
Bills receivable 40,000
Postage and telegram 8,00
Commission 500
Interest paid 3,000
Repairs 1,000
Lighting charges 1,000
Telephone charges 300
Carriage outwards 8,00
Motor car 1,20,000

11,21,800 11,21,800

Prepare trading and profit and loss account and balance sheet as on 31st march 2014 and the
following adjustment have to be taken into consideration.
Adjustment:-
1 ) closing stock Rs 65,000
2 ) outstanding wages and interest Rs 200 and Rs 400 respectively
3 ) depreciation charge on motor car @ 10% p.a
4 ) accured interest on investment @ 10%
5 ) Make a provision on bad debts RS 2000

Q 3 prepare trading and profit and loss account for the year ended 31st march 2014
and balance sheet as on that date…
Debit amt credit amt
Stock (1-4-2013) 60000 Sales 380850
Purchase 281000 Purchase return 2950
Wages 18000 Bills payable 39000
Carriage outwards 500 Capital 190000
Carriage inwards 1000 creditors 74000
Coal 5000 discount 3000
Salaries 36000
Rent,rates and taxes 3000
Discount 1600
Drawing 3750
Goodwill 60000
Land and building 45000
Plant and machinery 40000
Loose tools 3000
Bills receivable 5600

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 Repairs 1800
Printing and stationery 600
Bad debts 1200
Sales return 2000
General exp 5250
Cash at bank 45000
Cash in hand 10500
Sundry debtors 45000
Furniture 11500
Advertisement 3500
689800 689800
Adjustment:-
1 ) closing stock on 31st march 2014 was RS 40,000
2 ) outstanding wages as on 31st march 2014 RS 1600
3 ) prepaid advertisement RS 650
4 ) provide 5 % on debtors against bad debts and 2 % against discount.
5 ) depreciate plant and machinery , tools and furniture by 10 % and land and building by 5 %.

Q 4 prepare trading and profit and loss account for the year ended 31st march 2013
and balance sheet as on that date…
Debit Amt credit Amt
Stock (1-4-2013) 30,000 Sales 190425
Purchase 1,40,500 Purchase return 1475
Wages 9,000 Bills payable 19500
Carriage outwards 250 Capital 95000
Carriage inwards 500 creditors 37000
Coal 2500 discount 1500
Salaries 18000
Rent,rates and taxes 1500
Discount 800
Drawing 1875
Goodwill 30000
Land and building 22500
Plant and machinery 20000
Loose tools 1500
Bills receivable 2800
Repairs 900
Printing and stationery 300
Bad debts 600
Sales return 1000
General exp 2625
Cash at bank 22500
Cash in hand 5250
Sundry debtors 22500
Furniture 5750
Advertisement 1750
344900 344900
Adjustment:-
1 ) closing stock on 31st march 2013 was RS 20,000
2 ) outstanding wages as on 31st march 2013 RS 800
3 ) prepaid advertisement RS 325
4 ) provide 2.5 % on debtors against bad debts and 1 % against discount.
5 ) depreciate plant and machinery , tools and furniture by 5 % and land and building by 2.5 %.
8
5 ) from the following trial balance of Mr. Dinkar for the year ending 31st march 2014 ,
prepare final account of sole traders.
debit amt credit Amt
Opening stock 55000 Capital 495000
Debtors 76000 Creditors 38500
Purchase 480000 Sales 770000
Return inwards 16500 Return outwards 10000
Carriage 8800 Commission 14300
Wages and salaries 27500 Provision for doubtful debts 10000
Machinery 88000 Bills payable 6600
furniture 22000 Bank loan 100000
Bad debts 8800
Bills receivable 30000
Land and building 490000
Taxes and insurance 18000
Discount allowed 12200
Bank 59000
Drawing 45000
Interest 1600
General exp. 6000

14,44,40 14,44,400
0
Adjustment:-
1 ) closing stock was valued Rs 35,000
2 ) depreciation on machinery @ 10 % , on furniture @ 15 % and on land and building @ 10 %.
3 ) prepaid expenses: taxes and insurance RS 1000
4 ) outstanding wages and salaries RS 1500
5 ) goods costing Rs 15,000 were sold on approval basis for RS 18,000 , but these were not
approved by the customer as yet.
6 ) make a provision for doubtful debts @ 10 % on debtors.

6) from the following trial balance of Mr. Dinkar for the year ending 31st march 2013 ,
prepare final account of sole traders.
debit amt credit Amt
Opening stock 1,10000 Capital 9,90,000
Debtors 1,52,000 Creditors 77,000
Purchase 9,60,000 Sales 15,40,000
Return inwards 33,000 Return outwards 20,000
Carriage 17,600 Commission 28,600
Wages and salaries 55,000 Provision for doubtful debts 20,000
Machinery 1,76,000 Bills payable 13,200
furniture 44,000 Bank loan 200000
Bad debts 17,600
Bills receivable 60,000
Land and building 9,80,000
Taxes and insurance 36,000
Discount allowed 24,400
Bank 1,18,000
Drawing 90,000
Interest 3,200
General exp. 12,000

9
 28,88,80 28,88,800
0

Adjustment:-
1 ) closing stock was valued Rs 70,000
2 ) depreciation on machinery @ 20 % , on furniture @ 30 % and on land and building @ 20 %.
3 ) prepaid expenses: taxes and insurance RS 2000
4 ) outstanding wages and salaries RS 3000
5 ) goods costing Rs 30,000 were sold on approval basis for RS 36,000 , but these were not
approved by the customer as yet.
6 ) make a provision for doubtful debts @ 20 % on debtors.

7 ) from the following balance were taken from the books of shri Tendulkar on 31st march
2014:-
Particular amt particular amt
Cash in hand 2618 Capital account 302940
Cash at bank 4862 Sales 454600
Sundry debtors 160820 Purchase return 4800
Stock as on 1-4-13 115940 Sundry creditor 80400
Furniture and fixture 40000 Loan 26100
Purchase 261800 Reserve for bad debts 5600
Sales return 7800 Discount received from 3000
Freight on purchase 2250 creditor
Carriage outwards 3740
Office equipment 29900
Building 112200
Motor car 37400
Motor car exp. 3000
Bank charges 1200
Bad debts 3740
Insurance premium 10300
General office exp. 5600
Electric charges 4200
Printing and stationery 3360
Drawings 22500
Discount allowed to debtors 4490
Rates and taxes 3900
Salaries 20570
Rent for godown 10200
Interest on loan 5050
877440 877440

Prepare trading , profit and loss account for the year ending 31str march 2014and also the
balance sheet as on that date.
Adjustment:-
1 ) the value of the closing stock was Rs 45,000
2 ) depreciation to be written off :- building @ 5 % ; office equipment @ 15 % ; furniture and
fixture @ 10 % ; motor car @ 20 % .
3 ) the provision for bad and doubtful debts @ 5 % on debtors.
4 ) insurance premium includes RS 5800 paid towards proprietors life insurance policy and the
balance charges cover the period from 1st april 2013 to 30th june 2014.

10
8 ) from the following balance were taken from the books of shri Tendulkar on 31st march
2013:-
Particular amt particular amt
Cash in hand 1309 Capital account 151470
Cash at bank 2431 Sales 227300
Sundry debtors 80410 Purchase return 2400
Stock as on 1-4-13 57970 Sundry creditor 40200
Furniture and fixture 20000 Loan 13050
Purchase 130900 Reserve for bad debts 2800
Sales return 3900 Discount received from creditor 1500
Freight on purchase 1125
Carriage outwards 1870
Office equipment 14950
Building 56100
Motor car 18700
Motor car exp. 1500
Bank charges 600
Bad debts 1870
Insurance premium 5150
General office exp. 2800
Electric charges 2100
Printing and stationery 1680
Drawings 11250
Discount allowed to debtors 2245
Rates and taxes 1950
Salaries 10285
Rent for godown 5100
Interest on loan 2525
438720 438720

Prepare trading , profit and loss account for the year ending 31str march 2013and also the
balance sheet as on that date.
Adjustment:-
1 ) the value of the closing stock was Rs 22,500
2 ) depreciation to be written off :- building @ 2.5 % ; office equipment @ 7.5 % ; furniture
and fixture @ 5 % ; motor car @ 10 % .
3 ) the provision for bad and doubtful debts @ 2.5 % on debtors.
4 ) insurance premium includes RS 2900 paid towards proprietors life insurance policy and the
balance charges cover the period from 1st april 2012to 30th june 2013.

9 ) From the following Trial Balance of Mr. Pradip Prepare the Trading and Profit &
Loss Account for the year ending 31st March 2014 and Balance Sheet as at that date:

11
 Particulars Dr.(Rs.) Cr. (Rs.)
Capital 1,80,000
Drawings 32,500
Stock(on 1.4.2013) 1,74,450
Return Inwards 5,540
Carriage Inwards 12,400
Deposits with Mr. Nilesh (Interest
Free) 13,750
Carriage Outwards 7,250
Loan to Anil @5% given in
1.4.2013 10,000
Return Outwards 8,400
Interest on the above Loan 250
Rent 8,200
Rent Outstanding 1,300
Purchases 11,29,700
Debtors 40,000 Adjustment:-
1) Goodwill 17,300 Increase Bad
Creditors 30,000 Debts By Rs.
Advertisement expenses 9540 6,000. Make
Provision for Doubtful Debts 12,000 provision for
Bad Debts 4,000
doubtful debtful
Patents and Trade Marks 5,000
debts @ 10%
Cash in hand 620
Sales 12,79,140 and provision
Discount Allowed 3,300 for discount on
Wages 7,540 debtors @5%.
2) Plant & Machinery(Purchased on The value of the
1.4.2013) 30,000 Closing
15,00,090 15,11,190 Stocking was
Rs. 1,87,920
3) Wages included Rs. 2,000 paid for the erection of Machinery on 1.4.2013.
4) Provide for depreciation on Machinery @10 % P.a.

10 ) The Following is the Trail Balance Of Shri. Jay 31st March 2014 and it is desired
to prepare Final Account showing the result of the transaction for the year.

12
 Particulars Dr.(Rs.) Cr. (Rs.)
Capital Account 41,000
Adjustment:- Plant and Machinery 51,000
The following Office Furniture 2,600
adjustment are Stock on 1st April,2013 48,000 to
made in the Motor Van 12,000
account:- Sundry Debtors 45,000
a) Cash in Hand 400
Stock:31st Balance at Bank 6,500
Wages: Factory 1,50,000
Office 14,000
Purchases 2,13,500
Sales 4,80,000
Bills Receivable 7,200
Bills Payable 5,600
Sundry Creditors 52,000
Return Inwards 9,300
Provision For Bad Debts 2,500
Drawings 6,000
Returns outward 5,500
Rent 6,000
Lighting 8,00
Telephone 1,350
Insurance 300
Advertisement 6,350
General Insurance 1,000
Bad Debts 2,500
Discount Allowed 6,500
Discount Received 3,700
5,90,300 5,90,300
March,2014 Rs.52,000
b) Rent due but not paid: 31st March,2014 Rs.2,000
st
c) Lighting due but not paid:31 March,2014 Rs.300
d) Insurance Paid in advance Rs.100
e) Depreciation to be written off:
Plant and Machinery @33.5%
Office Furniture @10%
Motor Van @33.5 %
f) The provision for bad and doubtful debts has to be increased to Rs.3,000
g) Discount at 2.5% on debtors and creditors are to be provided.

11 )The following is the Trial Balance of Shri Krishna at 31st March 2014 you are
required to prepare Final Account. Offer giving effect to the adjustment.

Particulars Dr.(Rs.) Cr. (Rs.)

Sundry Creditors 63,000
Sundry Debtors 1,45,000
Capital Account 7,10,000
Drawings 52,450
Insurance 6,000
General Expenses 30,000
Salaries 1,50,000

13
 Patents 75,000
Machinery 2,00,000
Freehold Land 1,00,000
Building 3,00,000
Stock on 1.4.2013 57,600
Carriage on Purchases 20,400
Carriage on Sales 32,000
Fuel and Power 47,300
Wages 1,04,800
Return outwards 5,000
Return Inwards 6,800
Sales 9,87,800
Purchases 4,06,750
Cash at Bank 26,300
Cash in hand 5,400
17,65,800 17,65,800
Adjusment:
The following adjustment are to be made:
1) Stock on 31st March,2014 was valued at Rs.68,000.
2) A Provision for doubtful debts is to be created to the extent of 5% on Debtors.
3) Depreciate: Machinery by 10%, Patents By 20%.
4) Wages include a sum of Rs.20,000 spent on the erection of a Cycle Shed for
employees and customers.
5) Salaries for the month of March 2014, amounting to Rs.15,000 were unpaid.
6) Insurance includes a premium of Rs.1,700 on a policy expiring on the 31th
September,2014.

12 ) From the following Trail Balance and adjustment information of sri.

Shambhunath as on 31st March 2014,you are required to prepare Trading and Profit
& Loss A/c for the year ended 31st March 2014 and balance sheet as on that date.

Particulars Dr.(Rs.) Cr. (Rs.)

Cash in Hand 810
Cash at Bank 3,950
Purchase 61,010
Return inwards 1,020
Wages 12,720
Fuel and power 7,090
Carriage on sales 4,800
Carriage on Purchase 3,060
Stock(1-4-2013) 8,640
Building 48,000
Freehold Land 15,000
Machinery 30,000
Patents 11,250
Salaries 22,500
General expenses 4,500
Insurance(Including premium
of Rs.520 per annum paid up to
30 Sep.2014) 900
Drawings 7,870
Sundry Debtors 21,750
Sales 1,48,170
14
 Return outwards 750
Capital 93,000
Sundry Creditors 9,450
Rent 13,500
2,64,870 6,64,870
Adjustment
1) Stock at hand on 31st March 2014 Rs. 10,200
2) Depreciation Machinery 10% and Patents 20%
3) Salary outstanding for the month of March 2014 amount Rs.2,250.
4) Bad debts are Rs. 1080 asnd Bad debts Reserve 2%.

13 ) From the following Trial Balance extracted From the Books of Sajan
Sing, Prepare a Trading and profit & Loss Account for the year ended
31st March, 2014 and a Balance Sheet as on that date.

Particulars Dr.(Rs.) Cr. (Rs.)

Capital Account 1,80,000
Bad debts Provision 2,980
Sales 1,82,460
Discount A/c 240
Purchase Returns 16,920
Sundry Creditors 24,340
Advance Premium 29,600
Drawings 12,960
Land and Buildings 50,000
Plant and Machinery 28,540
Furniture & Fixtures 2,500
Carriage Inwards 8,740
Wages 42,940
Salaries 9,340
Sales Returns 3,520
Bank Charges 280
Coal, Gas and Water 1,440
Rates and Taxes 1,680
Purchases 84,320
Bills Receivable 2,540
Trade Expenses 3,980
Sundry Debtors 75,600
Stock(1-4-2013) 52,840
Fire Insurance 980
Cash at Bank 26,000
Cash in Hand 1,700
4,09,900 4,09,900
Adjustment:
1) Depreciation: Land and Building 2.5%, on Plant and Machinery 10%,
and Furniture and Fixture 10%.
2) Make a Provision of 5% on Sundry Debtors for Doubtful debts.
15
 3) Carry forward the unexpired amount for fire insurance Rs.250, Rates
and Taxes RS.480.
4) Charge 5% interest on Capital and Interest on Drawing is Rs. 600
5) The Value of closing stock on 31st March 2014 was Rs. 58,780.

14 ) Mr. Atul Pandy commenced business on 1st April 2014 introducing

the following as initial capital:
Bank Balance Rs.20, 000, Land Rs.50, 000: Buildings Rs. 28,000,
Furniture Rs. 2000 & Motor Van Rs. 6,000.
In Addition to above, the following balance have been extracted from his
books.

Particulars Rs.
Motor Expenses 16,000
Sundry Debtors 19,720
Sales 9,70,000
Purchases 8,86,400
Salaries 20,760
Discount Received 16,040
Rates 2,760
Addition to Build in (as on 1-4-2014) 16,800
Repairs to Buildings 2,360
Rent Received 4,480
Lights and Fans 3,680
Telephone 2,040
Insurance 1,640
Balance at Bank 40,000
Cash in hand 640
Sundry Creditors 50,000
Addition to motor Van (as on 1-7-2014) 10,400
Sundry expenses 9,660
Drawings 28,000
Income tax advance 2,000
Provision for Doubtful Debts(Cr.) 2,380
Prepare Trading and Profit & Loss Account and Balance Sheet as at 31st
March 2015 after taking into consideration the following.
1) Stock as on 31st March 2015, Rs. 1, 35,000.
2) Depreciate per Annum: Building 5%; Furniture 6%; Motor Vans
20%.
3) Income tax Payable Rs. 13,000.
4) Unpaid expenses; Light and fans Rs.800;Telephone Rs.200
5) Amount paid in advance: Insurance Rs. 600; Rates Rs.400.

16