Page 55 - VIRANSH COACHING CLASSES

Adjustments :
1) Closing Stock is valued at Cost Price ` 28,000 and Market Price ` 32,000.
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2) Insurance is paid up to 30 June 2019.
3) Outstanding Expenses - Wages ` 800, Salaries ` 700.

4) Book value of Plant and Machinery is reduced to ` 13,000.
5) Depreciate Furniture by 5% p.a.
6) Provide further Bad debts of ` 800.
7) Goods of ` 3,000 distributed as a free sample.

IN THE BOOKS OF KRANTI AND SUMANGALA
TRADING AND PROFIT AND LOSS ACCOUNT
For the year ended 31 March, 2019
st
Dr. Cr.
Particulars Amount Amount Particulars Amount Amount
` ` ` `
To Opening Stock 32,500 By Sales 60,000
To Purchases 40,000 Less : Sales Return 1,500 58,500
Less : Purchases Returns 1,000 39,000 By Closing Stock 28,000
To Wages 3,000 By Goods Distributed 3,000
Add : Outstanding 800 3,800 as Free sample
To Gross Profit c/d 14,200

89,500 89,500

To Postage 2,700 By Gross Profit b/d 14,200
To Insurance 7,500 By Commission 325

Less : Prepaid Insurance 1,875 5,625
To Salaries 4,850 By Net Loss
Add : Outstanding Salary 700 5,550 (Transferred to Capital A/c's)
To Depreciation on : Kranti 4,706
Plant & Machinery 2,000 Sumangala 1,569 6,275
Furniture 625 2,625
To Bad-debts (Old) 500
Add : Bad debts (New) 800 1,300

To Advertisement 3,000
(Goods distributed)
20,800 20,800

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