QUESTION NUMBER : 1

PREPARE TRADING ACCOUNT AFTER MAKING PROPER RECTIFICATION AND ADJUSTMENT FOR THE YEAR ENDING 31-3-2012.

TRADING ACCOUNT FOR THE YEAR ENDED 31-3-2012

PARTICULARS OPENING STOCK PURCHASES (-) RETURNS WAGES DIRECT EXPENSES GROSS PROFIT C/D 125000 5000 1 20 000 80 000 15 000 92 000 3 52 000 3 52 000 AMOUNT 45 000 PARTICULARS SALES 000 (-) RETURNS 000 CLOSING STOCK 3 00 2 80 000 20 72 000 AMOUNT

ADJUSTMENTS:1.

while verifying the books of accounts you find

that opening stock is valid 10% below cost and closing stock is valued 10% above cost.

2. wages include electrical of plant include rs 5000.

3.

the propreitor withdrew rs.10000 worth of goods for his personal consumption but not recorded any where in the books of accounts.

QUESTION NUMBER : 1
4. sales include sale of assets rs 25000 for cash.