Case Study

Following is the Trial Balance of M/s BR and Sons. Prepare final accounts for the year ended on
31st March 2013.

Debit (INR.
Particulars  Credit (INR.)    
) 

Stock as on 01.04.2012: Finished

200000      
goods 

Purchases and Sales  2200000 3500000    

Bills receivables 50000      

Returns  100000 50000    

Carriage Inwards  50000      

Debtors and Creditors  200000 400000    

Carriage Outwards 40000      

Discounts 5000 5000    

Salaries and wages  220000      

Insurance 60000      

Rent  60000      

Wages and salaries  80000      

Bad debts  10000      

Furniture  400000      

BR & Sons  capital    500000    

BR & Sons  drawing  70000      

Loose tools  100000      

Printing & stationery  30000      

Advertising  50000      

Cash in hand  45000      

Cash at bank  200000      

Petty Cash 5000      

Machinery 300000      

Commission  10000 30000    

Total  44,85,000  44,85,000    

         

Adjustments:         

(i) Finished goods stock. Stock on 31st March was valued at Cost price Rs.  4,20,000 and market
price  Rs. 400,000.

(ii) Depreciate furniture @ 10% p.a. and machinery @ 20% p.a. on reducing balance method.  

(iii) Rent of Rs.  5,000 was paid in advance.   

(iv) Salaries & wages due but not paid Rs. 30,000. 

(v)Make a provision for doubtful debts @ 5% on debtors. 

(vi) Commission receivable Rs.  5,000.