Answered You can hire a professional tutor to get the answer.
Q) From the following extracts of Trial Balance as on 31/3/2003 and other additional information, prepare Profit and Loss Account and Balance Sheet.
Additional Information:
Difference in the trial balance, if any, can be taken as miscellaneous expenses or income.
Bank overdraft is secured against hypothecation of stock. The Bank overdraft outstanding as on 31/3/2003 accounted for 80% of drawing power. Such power is ascertained by deducting 20% as margin from the value of stock as on that date.
Purchase include sales return of Rs.5500/- and sales include purchase returns of Rs. 4750/-.
Goods withdrawn by the owner for own consumption amounts Rs.7500/- included in purchases.
Wages paid for installation of plant and machinery amounting to Rs.750/- were included in wages account.
Depreciation is to be provided on plant and machinery @ 15% p.a. and on furniture and fittings @ 10% p.a.
Create a provision for doubtful debts @ 5% and provision for discount on debtors @2.5% .
A debit balance of Rs.2500/- in the account of Ram, a creditor is included in the list of sundry Creditors.
Free samples distributed for publicity costing Rs.1250/-
