Solution-Maintain the provision for doubtful debts

Maintain the provision for doubtful debts

Assignment Help Accounting Basics

Reference no: EM13528244

From the following Trial Balance of Mr. Reddy, you are required to prepare Trading and Profit and Loss Account for the year ended on Mar 31, 2009 and a Balance Sheet on that date:

	Debit Balance	Credit Balance
Particulars	Rs	Rs
Capital	-	1,00,000
Drawings	12,000	-
Sundry Creditors	-	40,000
Cash-in-hand	5,000	-
Cash-at-bank	11,600	-
Sundry Debtors	51,000	-
10% Loan (taken on Sep 1, 2008)	-	20,000
Provision for Doubtful Debts	-	4,000
Furniture	12,000	-
Machinery	28,400	-
Stock (Apr 1, 2008)	80,000	-
Purchases	1,80,000	-
Rent and Taxes	6,800	-
Salaries	18,000	-
Manufacturing Wages	25,000	-
Sales	-	2,80,800
Sundry Expenses	2,000	-
Insurance (including a premium of Rs 600 per annum paid Sep 30, 2009)	800	-
Commission	-	1,400
Carriage	4,000	-
Travelling Expenses	1,600	-
Bills Receivable	8,000	-
	4,46,200	4,46,200

Adjustments

Stock on Mar 31, 2009 was Rs 76,000
Write off bad debts Rs 1,000 and maintain the provision for doubtful debts at 5% on debtors
Manufacturing wages include Rs 1,600 for erection of new machinery on Mar 1, 2009
Depreciate machinery by 5% and furniture by 10%

Reference no: EM13528244

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Maintain the provision for doubtful debts

Reference no: EM13528244

Reference no: EM13528244

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