Question

Prepare the trading and profit and loss account and a balance sheet of M/* Shine Ltd. From the following particulars.

Adjustments

1. Closing stock was valued Rs. 35,000.

2. Depreciation charged on furniture and fixture @ 5 %.

3. Further bad debts Rs. 1,000. Make a provision for bad debts @ 5% on sundry debtors.

4. Depreciation charges on motor car @ 10%.

5. Interest on drawing @ 6%.

6. Rent, rates and taxes was outstanding? 200.

7. Discount on debtors 2%.

Answer 1

Balance sheet as on 31/12/05