Given below is the Trial Balance of M/s. Seeta and Geeta as on 31st March, 2010.

6. Given below is the Trial Balance of M/s. Seeta and Geeta as on 31st March, 2010. You are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet on that date.

Adjustments:

1) Stock on hand on 31st March, 2010 was valued at Rs. 80,000.

2) Goods costing Rs. 16,000 destroyed by fire and Insurance company admitted a claim of Rs. 13,000.

3) Provide for outstanding expenses: Salaries Rs. 3,000, Wages Rs. 2,400.

4) Depreciate Machinery at 10% p.a. Land and Building at 5% p.a.

5) Create Reserve for Bad and doubtful debts at 5% on Sundry Debtors.

6) Legal charges paid in advance paid in advance Rs. 1,200. 7) Provide interest on capital at 8%.



3 comments:

Unknown said...

The sum is fully wrong because u have not posted goods destroyed by fire 16000 in Tr/Cr u solution are fully wrong how did u tally trading A/c and Profit and Loss A/C you have copied solution from digest or any other solution set.

Unknown said...

From where 18,900 amount came-
current a/c geeta?

Anonymous said...

Current Account banake 26600 (net profit) +intrest on capital 19200
(+9600+9600)+5000(current account credit) - ( 4000 geeta current in debit) 46800 ho jayega tally balance sheet