Question 14: PRACTICAL PROBLEMS Journalise the following bill transactions in the books of Gopal as on 14th August, 2010.

Question 14:

PRACTICAL PROBLEMS

Journalise the following bill transactions in the books of Gopal as on 14th August, 2010.

1. Shruti’s acceptance to Gopal Rs 4,500 retired one month before due date at rebate 10% p.a.

2. Discounted 3 months acceptance of Chandrakant for Rs 3,500 with bank @ 12% p.a.

3. Received cheque Rs 2,000 and 2 months acceptance drawn on Sushama for Rs 10,000 for the balance due on her account.

4. Endorsed Shantaram’s acceptance at 2 months of Rs 5,000 in favour of Balchandra and paid cash Rs 2,500 in full settlement of this account Rs 7,800.

5. Sold goods of Rs 13,500 on credit to Nanda. Drew 2 months bill on her. Which is duly accepted and returned by her.

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%.