Chapter 5: Preparation of Financial Statements

Practice Problems

1. TRADING AND PROFIT AND LOSS ACCOUNT OF PRAKASH

For the year ended on 31st March, 2015

Particulars Amount Particulars Amount
Rs. Rs.
To Opening Stock 68,390 By Sales 2,102,430
Purchases 1,664,580 Less: Returns 78,210
Less: Returns 13,460 ---------- 2,024,220
---------- 1,651,120 Closing Stock 62,500
Freight on Purchases 29,290
Gross Profit c/d 337,920
2,086,720
2,086,720
By Gross Profit b/d 337,920
To Rates and taxes 28,000 Discount 5,500
Add: Outstanding 3,500 Rent 2,400
-------- 31,500
Salaries 90,970
Add: Outstanding 7,500
-------- 98,470
General expenses 34,890
Interest on Loan 3,000
Add: Outstanding 2,850 5,850
--------- 24,040
Freight on Sales
Insurance 910 760
Less: Prepaid 150 5,250
-----
Bad Debts
Provision for Bad Debts
6,391
13,491
32,640
Less: Existing Prov. 7,100
22,000
-------
7,639
Advertising
Depreciation 345,820
76,390
Manager’s Commission 345,820
(See working
note)
Net Profit
Working Note:
Profit before charging manager’s commission Rs.84,029
Mamager’s commission (Rs.84,029 x 10/110) Rs. 7,639

BALANCE SHEET OF PRAKASH

As on March 31,2015

Liabilities Amount Assets Amount

Rs. Rs.
Capital 280,000 Property, Plant and
Add: Net Profit 76,390 Equipment 220,000
----------- Less: Depreciation 22,000
198,000
356,390 -----------
Less: Drawings 30,000 326,390 Debtors 269,820
------------ Less Provision for
Bank Loan 95,000 Bad debts 13,491 256,329
Add: Outstanding ----------- 62,500
Interest 2,850 97,850 Closing Stock 20,500
------------ 130,150 Cash in Hand 35,550
Creditors Cash at Bank 150
Prepaid insurance
Outstanding Expenses:
Salaries 7,500
Rates and Taxes 3,500
Manager’s 18,639
Commission 7,639 573,029 573,029
-------- ----------- ----------

2.

TRADING AND PROFIT AND LOSS ACCOUNT OF ARMAN

For the year ended on 31st March, 2015
 Particulars Amount Particulars Amount
Rs. Rs.
To Opening Stock 450,000 By Sales 3,100,000
Purchases 2,600,000 Closing Stock 530,000
Freight on Purchases 46,000
Gross Profit c/d 534,000

3.630,000 By Gross Profit b/d 3,630,000

534,000
To Rent Commission 13,000
24,000 Add: Outstanding 1,220
Salaries 55,000
Add: Outstanding 5,000 ------- 14,220
-------- 60,000
General expenses 5,000

Discount 2,000
Insurance 4,000
Less: Prepaid 1,000
------ 3,000
Bad Debts 16,000
Provision for Bad Debts
12,000
Less: Existing Prov 9,000 3,000
------- 12,500
Advertising 10,000
Depreciation 37,520
Manager’s Commission 548,220
(See working note) 375,200
Net Profit 548,220

Working Note:
Profit before charging manager’s commission Rs.412,720
Mamager’s commission (Rs.412,720 x 10/110) Rs. 37,520

BALANCE SHEET OF ARMAN

As on March 31, 2015

Liabilities Amount Assets Amount

Rs. Rs.
 Capital 800,000 Goodwill 200,000
Add: Net Profit 375,200 Property, Plant and
----------- Equipment 100,000
1,175,200 Less: Depreciation 10,000
90,000
Less: Drawings 60,000 1,115,200 -----------
------------ 200,000 Debtors 400,000
Creditors Less Provision for
Outstanding Expenses: Bad debts 12,000 388,000
Salaries 5,000 ----------- 530,000
Manager’s Closing Stock 52,000
42,520
Commission 37,520 Cash in Hand 58,000
---------- Cash at Bank 1,000
Prepaid insurance 1,220
Commission outstanding 37,500
Advertising Expenses

18,639
1,357,720
------------- 1,357,720
-------------

3.

TRADING AND PROFIT AND LOSS ACCOUNT OF ARMAN

For the year ended on 31st March, 2015

Particulars Amount Particulars Amount

Rs. Rs.
To Opening Stock 62,000 By Sales 230,000
Purchases 140,000 Less: Returns 4,200
Less: Returns 2,600 ---------- 225,800
---------- 137,400 Closing Stock 44,000
Freight on Purchases 1,200
Gross Profit c/d 69,200
269,800 269,800

By Gross Profit b/d 69,200

To Rent 5,500 Discount 1,600
Printing and Stationery 1,800 Rent
Electric charges 1,200
Salaries 11,000
General expenses 3,000
Rates and Taxes 2,100
Interest on Loan 2,700
Bank charges 1,600 70,800
Motor car expenses 2,400
2,000
Freight on Sales
Insurance 3,600
Less: Drawings 2,000
-------
1,600 800
Less: Prepaid 800 2,000
-----
Bad Debts
Provision for Bad Debts
4,300 1,300
Less: Existing Prov. 3,000 11,740
------- 2,400
Depreciation 19,260
Discount 70,800
Net Profit

BALANCE SHEET OF ARMAN

As on March 31,2015

Liabilities Amount Assets Amount

Rs. Rs.
 Capital 162,000 Property, Plant and
Add: Net Profit 19,260 Equipment 117,400
----------- Less: Depreciation 11,740
105,660
181,260 -----------
Less: Drawings 14,000 167,260 Debtors 86,000
------------- 30,000 Less Provision for
Loan 43,000 Bad debts 4,300 81,700
Creditors ----------- 44,000
Closing Stock 5,500
Cash in Hand 2,600
Cash at Bank 800
Prepaid insurance

240,560
240,260
-------------
-------------

4.

TRADING AND PROFIT AND LOSS ACCOUNT OF SHRI RAM PRASAD

For the year ended on 31st March, 2015

Particulars Amount Particulars Amount

Rs. Rs.
To Opening Stock 114,600 By Sales 1,403,700
Purchases 800,000 Less: Returns 42,400
Less: Returns 28,200 ---------- 1,361,300
---------- 771,800 Closing Stock 142,900
Wages 62,800
Freight on Purchases 23,100
Gross Profit c/d 531,900
1,504,200
1,504,200
By Gross Profit b/d 531,900
Postage and Telephone 8,200
Salaries 98,700
Rent 21,000
Add: Outstanding 5,700 23,000
Add: Outstanding 2,000
-------- 104,400 --------
Office expenses 13,400 1,900
Discount
Rates & Insurance 13,000
Less: Unexpired 2,400
-------- 10,600
Printing and Stationery 6,600
Freight on sales 169,400
Bad debts Provision 37,644
Less: existing Prov. 32,400
5,244
-------
Bad Debts 14,000
Add: Further B/D 5,700 19,700
------- 35,500
Depreciation 183,756 556,800
Net Profit
556,800

BALANCE SHEET OF SHRI RAM PRASAD As on March 31,2015

Liabilities Amount Assets Amount

Rs. Rs.
 Capital 1,000,000 Property, Plant and
Add: Net Profit 183,756 Equipment 355,000
----------- Less: Depreciation 35,500
319,500
1,183,756 -----------
Less: Drawings 176,000 1,007,756 Debtors 633,100
------------- Less: Bad Debts 5,700
189,200 ---------
Creditors 5,700 627,400
Outstanding Salaries Less Provision for
589.756
Bad debts 37,644
142,900
-----------
22,100
Closing Stock
124,000
Cash in Hand
2,400
Cash at Bank
2,000
Prepaid insurance
1,202,656 Rent receivable
------------- 1,202,656
-------------

5.

TRADING AND PROFIT AND LOSS ACCOUNT

For the year ended on 31st March, 2015
Particulars Amount Particulars Amount
Rs. Rs.
To Opening Stock 400,000 By Sales 1,805,000
Purchases 1,302,950 Less: Returns 24,000
Less: Returns 1,950 ---------- 1,781,000
---------- 1,301,000 Closing Stock 409,250
Wages 225,250
Less: For erection
Of machine 20,000 205,250
---------- 5,000
Freight on Purchases 279,000
Gross Profit c/d 2,190,250
2,190,250
By Gross Profit b/d 279,000
Repairs 16,750 Discount 5,300
Salaries 80,000
Add: Outstanding 8,000
-------- 88,000
Office expenses 1,250
Rent 20,000
Less: Prepaid 5,000 15,000
------- 8,000
Sales tax 14,800
Bad debts Provision
(5% of Rs.296,000)
Bad Debts 23,100
Add: Further B/ 4,000 27,100
284300
-------
Interest on Loan 6,000
24,000
Add: Outstanding 18,000
8,000
---------
Discount
Insurance 10,000 7,000
Less: Unexpired 3,000 9,000
------- 65,400
Depreciation
Net Profit 556,800

BALANCE SHEET As on March 31, 2015

Liabilities Amount Assets Amount

Rs. Rs.
 Capital 375,000 Property, Plant and
Add: Net Profit 65,400 Equipment 180,000
----------- 440,400 Less: Depreciation 9,000
171,000
-----------
303,050
Creditors Debtors 300000
200,000
Loan Less: Bad Debts 4,000
8,000
Outstanding Salaries ---------
18,000
Outstanding interest 296,000
Less Provision for
281,200
Bad debts 14,800
409,250
-----------
5,000
Closing Stock
95,000
Cash in Hand
3,000
Cash at Bank
5,000
Prepaid insurance
969,450 Rent prepaid
969,450
------------- -------------

6.
TRADING AND PROFIT AND LOSS ACCOUNT OF RAM GOPAL & SONS
For the year ended on 31st March, 2015
Particulars Amount Particulars Amount
Rs. Rs.
To Opening Stock 100,000 By Sales 960,000
Purchases 480,000 Less: Returns 20,000
Less: Returns 24,000 ---------- 940,000
---------- 456,000 Closing Stock 92,000
Wages 96,000
Add: Outstanding 10,000 106,000
---------- 24,000
Freight on Purchases 346,000
Gross Profit c/d
1,032,000 1,032,000

Salaries 120,000 By Gross Profit b/d 346,000

Add: Outstanding 8,000 Provision for Doubtful
-------- 128,000 Debts:
Commission 16,000 Existing 24,000
Interest on Loan 44,000 Less: Required 18,000
10,000 6,000
Discount ---------
24,000 8,000
Taxes &Insurance Discount
Advertisement 30,000
Depreciation 96,800
Net Profit 11,200
556,800

360,000

BALANCE SHEET OF RAM GOPAL & SONS

As on 31st March, 2015
Liabilities Amount Assets Amount
Rs. Rs.
 Capital 700,000 Property, Plant and
Add: Net Profit 11,200 Equipment 968,000
----------- Less: Depreciation 96,800
871,200
711,200 -----------
Less: Drawings 50,000 661,200 Debtors 180,000
----------- 80,000 Less Provision for
Creditors 440,000 Bad debts 18,000 162,000
Loan 8,000 ----------- 92,000
Outstanding Salaries 10,000 Closing Stock 24,000
Outstanding Wages Cash in Hand 50,000
Cash at Bank
1,199,200 1,199,200
------------- -------------

7. TRADING AND PROFIT AND LOSS ACCOUNT OF MR. X

For the year ended on 31st March, 2015
Particulars Amount Particulars Amount
Rs. Rs.
To Opening Stock 346,000 By Sales 1,545,000
Purchases 547,500 Less: Returns
Less: Purchase 20,000
1,525,000
Of Furniture 10,000 -------------
325,000
---------- Closing Stock
- 537,500
Less: Returns 12,500 525,000
----------
979,000
Gross Profit c/d 1,850,000 1,850,000

45,000 By Gross Profit b/d 979,000

To Advertisement Provision for Doubtful
Salaries 330,000 Debts (W.N.2)
Add: Outstanding 30,000 360,000
--------- 20,000 1,500
Taxes and Insurance125,000 Less: Required 18,500
---------
Add: Taxes due 12,000
---------- Commission 37,500 25,000
127,000 Less: In advance 12,500
137,000 ----------
Less: Insurance
prepaid 10,000 20,300
---------

Interest 11,800 22,500

Add: Outstanding 8,500 78,200
-------- 144,900
Bad Debts 12,500
Add: Further written 207,600 1,005,500
Off 10,000 745,000
---------
General Expenses
Depreciation (W.N.1)

Net Profit

BALANCE SHEET OF MR.X

As on 31st March , 2015
Liabilities Amount Assets Amount
Rs. Rs.
 Capital 1,250,000 Property, Plant and
Add: Net Profit 207,600 Equipment (W.N.1)1,449,000
----------- 1,457,600 Less: Depreciation 144,900
1,304,100
-----------
250,000
Creditors Debtors 380,000
285,000
Bank Overdraft Less: Bad Debts 10,000
----------
Outstanding Expenses 370,000
Salaries 30,000 Less Provision for
Tax 12,000 351,500
Bad debts 18,500
Interest 8,500 50,500 325,000
-----------
------------ 65,000
Closing Stock
Commission received in 12,500 10,000
Cash
advance ------------
Prepaid insurance
2,055,600 2055600
------------- ------------
--

Working Notes:

1. Depreciation: Rs.
Value of Property Plant and Equipment in Trial Balance 1,439,000
Add: Item of furniture wrongly shown as Purchases 10,000
---------
1,449,000
Depreciation @ 10% 144,900

2. Provision for Bad Debts

Debtors 380,000
Less: Bad Debts 10,000
---------
370,000
Provision (5%) 18,500

8.

TRADING AND PROFIT AND LOSS ACCOUNT OF MRS. GAURAV SINGH

For the year ended on 31st March, 2015
Particulars Amount Particulars Amount
Rs. Rs.
To Opening Stock 500,000 By Sales 7,000,000
Purchases 4,000,000 Closing Stock 400,000
Less: Drawings 80,000
----------- 3,920,000
Wages & Salaries 250,000
Add: Outstanding 100,000
---------- 350,000
Freight on Purchases 80,000
2,550,000
Gross Profit c/d 7,400,000
7,400,000
By Gross Profit b/d 2,550,000
Commission 134,000
Interest 24,000
Bad Debts Recovered 64,000
Add: Outstanding 16,000 40,000
--------
Taxes &Insurance 170,000
Less: Prepaid 40,000 130,000
---------
515,600
Depreciation 2,062,400
Net Profit 2,748,000
2,748,000

BALANCE SHEET OF MRS. GAURAV SINGH

As on 31st March, 2015
Liabilities Amount Assets Amount
 Rs. Rs.
Capital 3,712,000 Property, Plant and
Add: Net Profit 2,062,400 Equipment 5,310,000
----------- Less: Depreciation 515,600
4,794,400
5,774,400 -----------
900,000
Less: Drawings 580,000 5,194,400 Debtors
400,000
----------- 620,000 Closing Stock
196,000
Creditors 400,000 Cash at Bank
40,000
Loan 100,000 Insurance Prepaid
Outstanding Wages &Salaries 16,000
Outstanding Interest

6,330,400 6,330,400
------------- -------------

9.

TRADING AND PROFIT AND LOSS ACCOUNT OF BANERJEE

For the year ended on 31st March, 2015
Particulars Amount Particulars Amount
Rs. Rs.
To Purchases (Adjusted) By Sales 3,850,000
2,100,000 Less: Returns 15,000
Less: Returns 25,000 ---------- 3,835,000
2,075,000
-------------
453,000
Wages
12,000
Freight on Purchases
1,295,000
Gross Profit c/d

3,835,000
3,835,000
1,295,000
Interest on Loan 22,500 By Gross Profit b/d
Discount 12,000
Discount 7,500
Commission 15,000
Insurance 15,000
Less: Prepaid 2,500 12,500
--------- 390,000
Salaries 154,000
General Expenses 20,000
Freight on Sales 12,000
Bad Debts 12,000
Provision for Bad Debts 132,000
Depreciation 559,500
Net Profit 1,322,000
1,322,000

BALANCE SHEET OF BANERJEE

As on 31st March, 2015
Liabilities Amount Assets Amount
Rs. Rs.
 Capital 1,150,000 Property, Plant and
Add: Net Profit 559,500 Equipment 1,320,000
----------- 1,709,500 Less: Depreciation 132,000
373,500 1,188,000
Creditors -----------
Loan 250,000 Debtors 600,000
Expenses Payable 33,000 Less: Provision 12,000 588,000
Interest on Loan 22,500 --------- 450,000
Closing Stock 160,000
Cash at Bank 2,500
Insurance paid in advance
2,388,500 2,388,500
------------- -------------

10.

PROFIT AND LOSS ACCOUNT OF SHISHIR

For the year ended on 31st March, 2015
Particulars Amount Particulars Amount
Rs. Rs.
To Salaries 140,000 By Trading Profit 1,172,000
Add: Outstanding 7,000 Interest on loan 10,000
---------- 147,000 Add: Outstanding 10,000
Printing and Stationery 20,000 -------- 20,000
Discount 15,000 Insurance claim 50,000
Insurance 30,000 Provision for
Less: Prepaid 4,000 26,000 doubtful debts 48,000
------- 6,000 Less: Require 12,500 35,500
Bad debts 26,000 --------
Office Rent 169,750
Depreciation 867,750
Net Profit
1,277,500
1,277,500

BALANCE SHEET OF SHISHIR

As on 31st March, 2015
Liabilities Amount Assets Amount
Rs. Rs.
 Capital 2,000,000 Property, Plant and
Add: Net Profit 867,750 Equipment 1,810,000
----------- Less: Depreciation 169,750
1,640,250
2,867,750 -----------
Less: Drawings 100,000 2.767,750 Debtors 250,000
----------- 457,000 Less: Provision 12,500 237,500
Creditors 150,000 ----------- 400,000
Creditors for Machinery 7,000 Loan to Manoj 740,000
Outstanding Salaries 5,000 Closing Stock 250,000
Outstanding Wages Cash at Bank 105,000
Cash in Hand 4,000
Insurance Prepaid 10,000
Interest on Loan Outstanding

3,386,750
3,386,750
-------------
-------------

11.

TRADING AND PROFIT AND LOSS ACCOUNT OF GOVIND

For the year ended on 31st March, 2015
Particulars Amount Particulars Amount
Rs. Rs.
To Opening Stock 385,000 By Sales 2,314,400
Purchases 1,100,000 Closing Stock 726,000
Less:Returns 11,000
---------- 1,089,000
Wages 352,000
Less: wages for
Machine
Erection 11,000 341,000
--------
Gas and Fuel 29,700
Freight 99,000
Factory lighting 11,000
Gross Profit 1,085,700 --------------
------------ --
- 3,040,400
3,040,400 By Gross Profit b/d --------------
To Salaries ------------ 1,085,700
Office Expenses - Interest on loan 11,000
Printing and Stationery 132,000 Add: Outstanding 33,000
Insurance 27,500 -------
Office Rent 15,400 44,000
Discount 17,600
Bad debts 28,600
Office Rent 13,200
Provision for doubtful 13,200
Debts 14,300
Less: Existing
Provision 8,800
-----------
Depreciation 5,50
Manager’s Commission 0 1,129,700
Net Profit 189,200
62,500
625,000
1,129,700

BALANCE SHEET OF GOVIND

As on 31st March, 2015
Liabilities Amount Assets Amount
 Rs. Rs.
Capital 2,288,000 Property, Plant and
Add: Net Profit 625,000 Equipment 1,727,000
----------- Add: New Machine 165,000
2,913,000 -----------
Less: Drawings 132,000 2,781,000 1,892,000
------------ 495,000 Less: Depreciation 189,200 1,702,800
Creditors 154,000 -----------
Creditors for Machinery Debtors 286,000
Manager’s Commission 62,500 Less: Provision 14,300 271,700
Payable ----------- 440,000
Loan to Krishna 726,000
Closing Stock 292,600
Cash at Bank 26,400
Cash in Hand 33,000
Interest on Loan Outstanding

3,492,500
3,492,500
-------------
-------------

Working Note: Profit before charging manager’s commission Rs.687,500

Manager’s commission (Rs.687,500 x 10/110) Rs.62,500

12.

TRADING AND PROFIT AND LOSS ACCOUNT OF HARI

For the year ended on 31st March, 2015
Particulars Amount Particulars Amount
Rs. Rs.
To Opening Stock 500,000 By Sales 3,210,000
Purchases 1,500,000 Less: Returns 100,000
Less:Returns 50,000 ----------- 3,110,000
--------- Closing Stock 600,000
1,450,000
Less: Goods
taken for
private use 60,000 1,390,000
---------- 200,000
Wages 1,620,00
------------ --------------
Gross Profit
- 3,710,000
3,710,000 --------------
By Gross Profit b/d -
------------
To Salaries 300,000 Interest earned 1,620,000
-
Add: Unpaid 30,000 40,000
-----------
330,000
Less: Paid in
Advance 20,000
---------- 310,000
Office Expenses 120,000
Add: Outstanding 80,000
--------- 200,000
Printing and Stationery 80,000
Insurance 120,000
Less: Prepaid 20,000
100,000
---------
150,000
Rent
70,000
Bad debts
Provision for doubtful
Debts 100,000
Less: Existing
Provision 60,000 40,000
--------------
----------- 20,000
--
Provision for Depreciation 690,000
1,660,000
Net Profit ------------
--------------
-
1,660,000
------------
-

BALANCE SHEET OF HARI

As on 31st March, 2015
Liabilities Amount Assets Amount
Rs. Rs.
 Capital 1,000,000 Furniture 200,000
Add: Net Profit 690,000 Less: Provision for
----------- Depreciation 40,000
160,000
1,690,000 -----------
Less: Drawings 300,000 1,390,000 Debtors 2,000,000
------------ 1,200,000 Less: Provision 100,000 1,900,000
Creditors 30,000 ----------- 600,000
Salaries outstanding 80,000 Closing Stock 20,000
Office expenses outstanding Salaries paid in advance 20,000
Prepaid insurance
2,700,000 2,700,000
------------- -------------

13.

TRADING AND PROFIT AND LOSS ACCOUNT OF GANGULI

For the year ended on 31st March, 2015
Particulars Amount Particulars Amount
 Rs. Rs.
To Opening Stock 234,000 By Sales 1,448,000
Purchases 1,215,500 Less: Returns 58,000
Less:Returns 29,000 ---------- 1,390,000
---------
Closing Stock 393,000
1,186,500
Less: Furniture
Purchase 10,000 1,176,500
----------- 93,000
Freight 279,500
Gross Profit ------------ -------------
- 1,783,000
1,783,000 -------------
By Gross Profit b/d 279,500
------------
To Salaries 46,500
General Expenses Interest 7,250
19,600
Printing and Stationery Add: Outstanding 9,000
17,000 16,250
Fire Insurance Premium -------
3,000 14,950
Rent Discount
28,500
Audit Fees 3,500
Advertising 56,000
Discount 37,700
Interest 4,500
Add: Outstanding 7,500
-------- 12,000
Travelling Expenses 11,650
Postage 4,350 --------------
Depreciation 1,150 --
Provision for doubtful debts 5,250 310,700
Net Profit 64,500 --------------
------------
-
310,700
------------
-

BALANCE SHEET OF GANGULI

As on 31st March, 2015
Liabilities Amount Assets Amount
Rs. Rs.
 Capital 540,500 Furniture 9,000
Add: Net Profit 64,500 Add: New Purchase 10,000
----------- -----------
605,000 19,000
Less: Drawings 50,000 555,000 Less: Depreciation 1,150 17,850
------------ 74,000 -----------
Creditors 100,000 Debtors 120,000
Loan from Dena Bank 7,500 Less: sales returns 15,000
Outstanding interest ----------
105,000 99,750
Less: Provision 5,250 25,000
----------- 150,000
Investments 9,000
Deposits 393,000
Interest outstanding 1,900
Closing Stock 40,000
------------- Cash on Hand
736,500 -------------
Cash at Bank 736,500
-------------
-------------

14.
TRADING AND PROFIT AND LOSS ACCOUNT OF KRISHNA
For the year ended on 31st March, 2015
Particulars Amount Particulars Amount
Rs. Rs.
To Opening Stock 273,500 By Sales 1,850,000
Purchases 1,570,000 Closing Stock 150,000
Wages 100,000
Add: Outstanding 4,500
-------- 104,500
Freight 11,200
Gross Profit 40,800
-------------
------------
2,000,000
-
-------------
2,000,000 By Gross Profit b/d
40,800
To General Expenses ------------
Rent and Rates 8,500 19,900 Dividend 5,350
Less: Prepaid 1,000 Add: Accrued 1,350
--------- ------- 6,700
Discount 7,500 Interest 750
Bad Debts (1,000+3,000) 6,300 Net Loss 25,850
Depreciation 4,000
Provision for doubtful 31,500
debts 18,400
Less: Existing
Provision 16,000
: ---------- 2,400 --------------
Interest on Loan 2,500 --
------------ 74,100
- --------------
74,100
------------
-

BALANCE SHEET OF KRISHNA

As on 31st March, 2015
Liabilities Amount Assets Amount
Rs. Rs.
Capital 473,900 Property, Plant &
Less: Net Loss 25,850 Equipment 315,000
----------- Less: Depreciation 31,500
283,500
448,050 -----------
Less: Drawings 30,250 417,800 Debtors 95,000
------------ 290,000 Less: Bad Debts 3,000
Creditors 25,000 ----------
Loan from Ram 4,500 92,000
Outstanding wages 73,600
2,500 Less: Provision 18,400
Interest accrued on Loan ---------- 65,000
Investments 150,000
Closing Stock 3,350
Cash on Hand 162,000
Cash at Bank 1,350
1,000
------------ Accrued Dividend
-------------
739,800 Prepaid Rates
739,800
-------------
-------------