Shri. Vas Dev keeps his books on single entry system. From the following particulars prepare Trading and Profit and Loss Account and the Balance Sheet for the year ended Dec 31, 2008.
On 1.1.2008 his assets and liabilities were as follows: Stock Rs 75,000; Sundry Debtors Rs 90,000; Machinery Rs 90,000; Furniture Rs 7,500; Sundry Creditors Rs 45,000; Bank overdraft Rs 15,000;
The cash book gives the following information:
|
Rs.
|
|
Rs.
|
|
Receipts from Debtors
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1,20,000
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Salaries
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7.500
|
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Cash Sales
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45,000
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Drawings
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6.000
|
|
Payment to Creditors
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60,000
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General Expenses
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12,000
|
|
Cash Purchases
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37,500
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Rent
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3,300
|
|
Interest on bank 0/D
|
2,250
|
|
|
Discount allowed to debtors Rs 6,000; Discount earned from creditors was Rs 3,750; Goods worth Rs 4,500 were returned by customers and goods worth Rs 2,250 were returned to suppliers.
On Dec 31, 2008, his position was as follows:
Stock Rs 67,500; Sundry Debtors Rs 1,05,000; Bills Receivable Rs 9,000; Bills payable Rs 6,000; Machinery Rs 90,000; Furniture Rs 7,500; Sundry Creditors Rs 37,500; Salary outstanding Rs 750;
Depreciate Machinery @ 10% and furniture @ 6%.