Assignement[1]

ASSIGNMENT The trial balance of Mr. X as on 31st Dec. , 2004 was as follows: Name of accounts

Dr

Purchases Sales 252400 Reserve for doubtful debts Sundry Debtors Sundry Creditors Bills Payable Opening Stock Wages Salaries Furniture Postage Power and Fuel Trade expenses Bad debts Loan to Ram @ 10 % (Sep 1, 2004) Cash in hand and cash at bank Trade expenses accrued, not paid Drawings Capital Outstanding wages

1,62,505

Cr

5200 50,200 30,526 3,950 26,725 23,137 5,575 7250 4226 1350 5,831 525 3,000 10,000 700 4425 10,000 2,000

Prepare Trading account, Profit and loss account and balance sheet after taking into consideration the following: 1. depreciation on furniture is to be charged at 10% 2. Sundry debtors include an item of Rs 500 due from a customer who has become insolvent 3. Reserve for bad debts is to be maintained @ 5 % on sundry debtors 4. Goods of the value of Rs 1,500 have been destroyed by fire and insurance company admitted a claim of Rs 1000 5. Stock on 31st December, 2004 was Rs 12,550