Practical Question for Final Accounts
Mr. Gupta runs a general Store. His trail Balance as on 31st March 1996 was as follows: Particulars
Capital Drawing Purchases Sales Opening Stock Return outward Freight Inward Discount Received Salaries Commission Discount Allowed Dividend received Bad debts Provisions For doubtful debts Sundry Debtors Purchase Subsidies Return Inward Investment Furniture Sundry Creditors Salesman’s Commission Office Expenses Sales Tax Cash in hand and at Bank Total
Debit
Credit
1,25,000 19,62,000 2,20,000 55,000 2,95,000 25,000 19,500 2,65,000 26,000 2,05,000 2,20,000 15,000 72,500 1,22,00 6,29,000
12,50,000 25,90,000 22,000 25,000 57,500 32,000 15,000 64,500 2,00,000 -
42,56,000
42,56,000
Additional information: Mr. Gupta purchased a running business of Mr. a) Gaur for Rs. 6, 00,000 on 31st March 1996. He took over stock of Rs. 3, 25,000, debtors Rs. 2, 65,000, Furniture rs. 75,000 and creditors Rs. 75,000. No entry was passed for this transaction. Closing stock as on 31st march 1996 was not valued. b) Mr. Gupta earned a uniform rate of gross profit of 25% on net sales. c) Provision for doubtful debts is to be maintained at 7% on debtors. d) Purchases include purchase of furniture on 1st January 1996 worth Rs. 45,000 Sales include sale of old furniture for Rs. 16,000 on e) 1st October 1995 (WDV of such furniture on 1st April 1995 was Rs. 26,000). Furniture was to be depreciated by 10% p.a. f)
Prepare the trading Account and the Profit and Loss Account of Mr. Gupta for the year ended on 31st March 1996 and also a Balance Sheet as on the same date.
