Solution-Retail business-prepare trading and profit and

Retail business-prepare trading and profit and loss account

Reference no: EM13528257

Mr. Shewag carries on a retail business and his Trial Balance on Mar 31, 2009 is as follows:

Particulars	Dr. Rs	Cr. Rs
Purchases	11,31,250	-
Sales	-	14,13,300
Returns Inwards	8,500	-
Returns Outwards	-	6,240
Provision for Doubtful Debts	-	10,400
Sundry Debtors	76,400	-
Sundry Creditors	-	51,052
Bills Payable (promissory notes to be paid)	-	17,900
Stock in the beginning	1,13,450	-
Wages	40,274	-
Salaries	37,150	-
Furniture	30,150	-
Alternations to shop	9,000	-
Postage, Stationery, Insurance, etc.	26,452	-
Heading and Lighting	4,700	-
Trade Expenses	20,628	-
Rent, Rates and Taxes	27,034	-
Bad Debts	1,050	-
Loan at 15% (to Ajay, Dec 1, 2008)	6,000	-
Investments (at cost)	23,000	-
Dividends from Investments	-	3,650
Unexpired Insurance	1,048	-
Cash at Hand and at Bank	31,504	-
Bills Receivable (amount receivable on Promissory Notes	38,140	-
Promissory Notes	38,140	-
Capital Account	-	1,54,000
Drawings Account	32,000	-
Outstanding Wages	-	4,038
Rent Accrued but not Paid	-	1,500
Depreciation on Furniture	3,350	-
Additions to Furniture	1,000	-
	16,62,080	16,62,080

Prepare the Trading and Profit and Loss Account for the year ended on Mar 31, 2009 and a Balance Sheet on that date after taking into consideration the following:

Sundry Debtors include an item of Rs 500 for goods supplied to the proprietor and on item of Rs 1,200 due from a customer who has become insolvent.
Provision for doubtful debts is to be maintained at 5% of the Sundry Debtors.
One-fifth of alternations to the shop is to be written off.
Goods of the value of Rs 2,000 have been destroyed by fire and the insurance company had admitted the claim for Rs 1,400 only.
Bills receivable include a dishonored promissory note for Rs 5,300.
Stock at the end was Rs 1,21,040.
An intimation from the bank that a customer's cheque for Rs 2,000 had been dishonored is still to be entered in the books.

Reference no: EM13528257

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Retail business-prepare trading and profit and loss account

Reference no: EM13528257

Reference no: EM13528257

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