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    1714, Khitab, FS1

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    Ahmad Khitab
    1) The trading and profit and loss account and balance sheet were prepared using the financial information provided and making the specified adjustments. 2) Key figures include a net profit of Rs. 83638 and total assets and liabilities of Rs. 472764. 3) Adjustments were made for inventory, depreciation, provisions, prepaid expenses, and other specified items.

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    1714, Khitab, FS1

    Uploaded by

    Ahmad Khitab
    20 views4 pages
    1) The trading and profit and loss account and balance sheet were prepared using the financial information provided and making the specified adjustments. 2) Key figures include a net profit of Rs. 83638 and total assets and liabilities of Rs. 472764. 3) Adjustments were made for inventory, depreciation, provisions, prepaid expenses, and other specified items.

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    Financial accounting

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    1714,khitab,FS1

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    1) The trading and profit and loss account and balance sheet were prepared using the financial information provided and making the specified adjustments. 2) Key figures include a net profit of Rs. 83638 and total assets and liabilities of Rs. 472764. 3) Adjustments were made for inventory, depreciation, provisions, prepaid expenses, and other specified items.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    20 views4 pages

    1714, Khitab, FS1

    Uploaded by

    Ahmad Khitab
    1) The trading and profit and loss account and balance sheet were prepared using the financial information provided and making the specified adjustments. 2) Key figures include a net profit of Rs. 83638 and total assets and liabilities of Rs. 472764. 3) Adjustments were made for inventory, depreciation, provisions, prepaid expenses, and other specified items.

    Copyright:

    © All Rights Reserved
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    of 4

    Financial Statement 1

    ISA

    Topic
    (Make a trading and profit and loss account and balance sheet and use adjustments)

    Name: Khitab
    Roll No: 1714
    Q1: the following balance were extracted from the book accounts of M/s Chunnilal Ltd. As on March 31,
    2007. Make a trading and profit and loss account and balance sheet and use adjustments.

    Capital Account 268800


    Preliminary expenses 21100
    Sundry creditors 119260
    15% loan 40000
    Cash in hand 6060
    Cash in bank 37940
    Sundry debtors 124000
    Bill receivable 19000
    Provision for doubtful debts 5000
    Fitting and fixtures 17940
    Plant and machinery 57600
    Opening inventory as on 1.4.2006 109360
    Purchase 513180
    Manufacturing wage 81940
    Sale 712860
    Returns inward 5560
    Salaries 122000
    Rent and taxes 11240
    Interest and discount(Debit) 11740
    Travelling expenses 3760
    Repairs and renewals 6740
    Insurance premium 800
    Bad debts 7240
    Commission received 11280
    1. Inventory on March 31,2007 was valued at Rs.257920
    2. Manufacturing wage including Rs.2400 for erection of machinery purchased last lear
    3. Provide depreciation on plant and machinery at 15% and fixtures and fitting at 10%
    4. Create a provision for doubtful debts at 5% on sundry debtors
    5. Commission earned but no received by the company amount to Rs.1200
    6. Interest on loan for the last two month was not paid
    7. Insurance premium include Rs.600 paid upto September 30,2007
    8. Sundry debtors include Rs.650 due from a customer who has become insolvent
    9. Sundry debtors include Rs.650 due from a customer who has become insolvent
    10. Bill received includes a dishonored promissory note for Rs.650

    Trading and profit and loss account and balance sheet of M/s Chunnilal Ltd.as on March 31,2007
    Dr. Cr.
    Particulars Amount Particulars Amount
    to opening stock 109360 By sale 712860
    to purchase 513180 less return inward 5560 707300
    less machine 57600 455580 BY Closing stock 257920
    To travelling of Goods 3760
    To wage 81940
    less wage for erection 2400 79540
    To gross profit 316980

    965220 965220
    Profit and Loss account
    Dr. Cr.
    Particulars Amount Particulars Amount
    To preliminary expense 21100 By Gross profit 316980
    To rent and taxes 11240
    To bill 19000
    less promissory 650 18350
    To interest and discount 11740
    To insurance 800
    less prepaid 600 200
    to commission 11280
    less 1200 10080
    To erection machine 2400
    To salaries 122000
    To Repair 6740
    To bad debt 7240
    add further bad debt 650 7890
    To provision doubtful 5000
    add 5% provision 6168 11168
    To depreciation machine 8640
    To depreciation fixture 1794
    To net profit 83638

    316980 316980

    Liabilities amount Asset amount


    Capital 268800 Sundry Debtor 124000
    add net 83638 352438 less bad debtor 7240
    Sundry creditor 119260 less further bad debtor 650
    two month interest on loan 1066 less provisions 11168 104942
    machine 57600
    less depreciation 8640 48960
    Fixture 17940
    less depreciation 1794 16146
    Bank 37940
    cash 6060
    premium insurance 600
    closing stock 257920

    472764 472764

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