Final Account Important Question 2 for I.Com Part 1

Final Account Important Question 2 for I.Com Part 1

Prepare trading and profit & loss account and balance sheet for the year ended 31 December, 2007

 TRIAL BALANCE

Debit

Drawings                                                                                 650

Debtors                                                                                    26,250

Furniture                                                                               6,900

Wages                                                                                      2,750

Trade expenses                                                                    475

Selling expenses                                                                   250

Office expenses                                                                      500

Opening stock                                                                          2,000

Purchases                                                                                 5,000

Closing stock                                                                           6,000

                                                                                              

                                                                                                50,775

Credit

 

Sales                                                                                       25,000

Commission                                                                         600

Capital                                                                                    20,000

Creditors                                                                               4,175

Loan                                                                                        1,000

           

                                                                                                50,775                        

Adjustments:

(i) Prepaid wages Rs. 750

(ii) Depreciation on furniture @ 10 %

(iii) Unearned commission Rs. 100

 Solution

 Name

Trading and profit and loss account

For the year ended 31-12-2007

 

Particular                               Rs.                               Particulars                              Rs.      

 

Opening                                   2,000                           Sales                                        25,000

Purchase                                  5,000

Wages                               2,750

Less Prepaid wages   750      2,000

Gross Profit c/d                      16,000

                                                25000                                                                          25,000

 

Deprecation on furniture                 960                          Gross Profit                                16,000

Trade expense                                     475                              Commission                 600

Selling expense                                    250                              Less Un-earned        100      500

Office expense                                      500

Net Profit                                14,585

16,500                                                                                                   16,500  

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