Page 49 - VIRANSH COACHING CLASSES

Adjustments :
1) Closing Stock is valued at ` 23,000.
2) Depreciate Land and Building @ 5% and Machinery @10%.
3) Create Provision for Bad and Doubtful Debts at 5% on Sundry debtors and write off ` 1000 for
Bad-debts.
4) Goods worth ` 3000 were sold, but no entry was found in the books of account.
5) Outstanding carriage ` 500.
6) Goods worth ` 8000 were purchased on 31st March, 2019 and included in the closing stock but
not recorded in the Books of Account.

IN THE BOOKS OF SAPRE & ATRE
TRADING AND PROFIT & LOSS ACCOUNT
For the year ended 31 March, 2019
st
Dr. Cr.

Particulars Amt ` Amt ` Particulars Amt ` Amt `
To Opening Stock 18,000 By Sales 85,000
To Purchases 65,000 Add : Unrecorded 3,000
Add : Unrecorded 8,000 Sales
Purchases 88,000
73,000 Less : Returns 800 87,200

Less : Returns 1,500 71,500
To Carriage 1,200 By Closing Stock 23,000
Add : Outstanding 500 1,700
To Gross Profit c/d 19,000
1,10,200 1,10,200

To Salaries 3,200 By Gross Profit b/d 19,000
To Rent, Rates & Taxes 1,000

To Depreciation By Sundry Income 2,000
Land & Building 500
Plant & Machinery 2,000 2,500
To Bad debts (Old) 1,000
Add : Bad-debts(New) 1,000
Add : New R.D.D. 2,100

4,100
Less - R.D.D (Old) 400 3,700
To Advertisement 4,000
To Net Profit Transferred
to Capital Accounts :
Sapre 3,300
Atre 3,300 6,600
21,000 21,000

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