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