Prepare the necessary final accounts for the year

Reference no: EM13181709

Mr. Vasanth Reddy whose accounts are recorded by single entry only with Rs 10,000 lent by his wife and Rs 20,000 of his own; acquired a retail business of which he took possession on Apr 1, 2008.

Of the acquisition price Rs 7,500 was attributed to goodwill; Rs 2,500 to furniture, fixtures; Rs 17,500 to stock and Rs 2,500 was retained as working capital of which Rs 2,000 was paid into the bank. During the year his takings amounted to Rs 1,15,000 of which Rs 1,09,000 was paid into the bank, the remainder being in part utilised for cash payments. The payments out of the bank and cash during the year were:

Purchases	78,000
Salary	2,500
Wages	8,200
Trade Expenses	3,600
Rent, Rates and Taxes-Business	2,960
Personal	1,480
Payments to Domestic use	1,200
Drawings	12,000

At the close of the year his stock was of the value of Rs 18,750; He owned Sundry creditors for goods Rs 6,750; there was an owing to him for goods sold Rs 7,500; The balance at the bank was Rs 2,750.

Provide 5% for depreciation on furniture, fittings; interest @ 5% p.a. on his wife's loan. Rs 500 for doubtful debts. Prepare the necessary final accounts for the year ending on Mar 31, 2009 and the Balance Sheet as on that date.

Reference no: EM13181709

Questions Cloud

What is the probability that both are male : 50000 people at stadium, and 40000 of them are male. if 2 people are selected at random, what is the probability that both are male?

Find the steady-state temperature at the center of the plate : Determine the steady state temperature distribution in a 1 x 1 square plate where the top is held at 100 and the other three sides are held at 0.

Profit and loss account and the balance sheet for the year : prepare Trading and Profit and Loss Account and the Balance Sheet for the year ended Dec 31, 2008.

What is the probability that a randomly selected automobile : What is the probability that a randomly selected automobile manufactured by the company will have a defective microprocessor?

Prepare the necessary final accounts for the year : Provide 5% for depreciation on furniture, fittings; interest @ 5% p.a. on his wife's loan. Rs 500 for doubtful debts. Prepare the necessary final accounts for the year ending on Mar 31, 2009 and the Balance Sheet as on that date.

Write an inequality to model each situation : Write an inequality to model each situation

Describe healthcare transactions that have not taken place : Describe some healthcare situations in which an agent has taken advantage of a principal. Now describe some healthcare transactions that have not taken place because of fears about asymmetric information. What are some strategies for reducing adve..

Make trading and profit and loss account : You are required to prepare trading and profit and loss account for the year ended Mar 31, 2009 and Balance Sheet of Mrs. Renu as on Mar 31, 2009.

How much work is done by the man against gravity : A 180-lb man carries a 5-lb can of paint up a helical staircase that encircles a silo with radius 25 ft. If the silo is 80 ft high and the man makes exactly four complete revolutions, how much work is done by the man against gravity in climbing to..

User Account

All Pages