Comprehensive questions and detailed answers for Unit 6: Preparation of Final Accounts for Sole Proprietors (10Hrs). Perfect for exam preparation and concept clarity.
The following is the trial balance of business as on 31st December 2017.
| Particulars | Dr.Amount | Particulars | Cr.Amount |
|---|---|---|---|
| Opening stock | 18,000 | Sales | 2,20,000 |
| Purchases | 71,000 | Return outwards | 1,500 |
| Return inwards | 1,000 | Loan | 20,000 |
| Wages | 11,000 | Bills payable | 2,500 |
| Carriage on purchase | 2,500 | Capital | 40,000 |
| Printing and stationery | 3,000 | ||
| Discount received | 1,000 | ||
| Salaries | 2,800 | ||
| Insurance expenses | 8,000 | ||
| Plant & machinery | 120,000 | ||
| Debtors | 10,500 | ||
| Cash at bank | 11,600 | ||
| Rent expenses | 6,600 | ||
| Drawings | 3,000 | ||
| Furniture | 22,000 | ||
| Total | 2,85,000 | Total | 2,85,000 |
Additional information:
Closing stock is valued at Rs. 25,000.
Depreciation on plant & Machinery @ 15% & on Furniture @ 10%
Outstanding wages Rs. 4,000.
Prepaid insurance Rs. 500.
Prepare:
a. Trading account
b. Profit and loss Account
c. Balance sheet as on 31st December 2019
Prepare final Account of Tharu Store on the year ending 31 December, 2018