Page 37 - VIRANSH COACHING CLASSES

(3) Salaries paid in advance to staff ` 2,000.
(4) Create a provision for Bad Debts ` 1,000 and Reserve for Doubtful Debts 3% on Sundry
Debtors.
(5) Depreciate Land and Building by 5% and Furniture by 10%.

IN THE BOOKS OF SHILPA AND KATRINA

Trading and Profit and Loss Account for the year ended 31st March 2019
Dr. Cr.
Particulars Amount Amount Particulars Amount Amount
` ` ` `
To Opening Stock 65,000 By Sales 1,20,000
To Purchase 50,000 Less : Sales Return 2,000 1,18,000
Less : Purchases Return 1,480 4,88,520 By Closing Stock 58,000
To Wages 3,000
Add : O/s Wages 800 3,800
To Royalties 2,000
Add : O/s Royalties 1,500 3,500

To Carriage Inward 4,000
To Gross Profit c/d 51,180
1,76,000 1,76,000

To Salaries 5,000 By Gross Profit b/d 51,180
Less : Advance Salary 2,000 3,000 By Interest Received 1,500

To Bad debts (Old) 400
Add : Bad Debts (New) 1,000
Add : R.D.D. (New) 1,170
2,570
Less - R.D.D. (Old) 1,000 1,570
To Depreciation :
Land and Building 1,890
Furniture 1,725 3,615

To Printing And Stationary 4,000
To Discount 2,030
To Interest 1,000
To Commission 2,000
To Net Profit
(Transfered to Capital A/c)
Shilpa 17,732

Katrina 17,733 35,465
52,680 52,680

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