Professional Documents
Culture Documents
Prepare Trading and Profit & Loss Account for the year ended 31st March, 1995 and the
Balance Sheet as at that date after making provisions for the following:
1. Depreciate
a. Buildings used for Business by 5%
b. Furniture and Fixtures by 10% - one steel table purchased during the year for
Rs 1,400 was sold for same price but the sale proceeds were wrongly credited
to sales account.
c. Office Equipment by 15% - Purchases of a typewriter during the year for Rs
4,000 has been wrongly debited to purchases.
d. Motor Car by 20%
2. Value of stock at the close of the year was Rs 44,000
3. One month rent for godown is outstanding
4. One month salary is outstanding
5. Interest on loan from Ananth is payable at 12% p.a. This loan was taken on
01.05.1994
6. Reserve for Bad debts is to be maintained at 5% of sundry Debtors
7. Insurance premium includes Rs 4,000 paid towards proprietors life Insurance Policy
and the balance of the insurance charges cover the period from 01.04.1994 to
30.06.1995
8. Half of the buildings are used for residential purposes of Gavaskar