Final accounts

Please solve this:

The following are the balances taken from the books of meena
ltd. On 31st december 2011:
Stock on 1-1-2011 15,000 Salaries 800
Debtors 5,000 Bank account 3,400
Wages 8,000 Rent 2,000
Creditors 6,000 Bad debts reserve 175
Sales 40,000 Discount allowed 250
P&l a/c 3,500 Bad debts 150
Returns inward 500 General expenses 1,300
Purchases 6,000 Insurance 300
Plant 18,000 Dividend (interim) 575
Discounts earned 200 Capital 12,000
Cash in hand 600
Closing stock was valued at rs.9,000. Rs.500 still due to labourers.
Insurance unexpired rs.50. Provide for a bad debts reserve of 5% and a
reserve for discount at 1%. Prepare trading and profit and loss account as
at 31st december 2011.

G. P 19000
N.p 13800

Trading a/c cr side

Sales 39500(after deducting S.R 500)
Clo stock 9000

Less dr side of trading a/c

Opening stock 15000
Purchase 8000
Wages 6000
(+) o/s labours 500

So gp = 19000

P&l a/c cr side
Gp 19000
Dis recevd 200

P&l dr side

Interim dividend 575
Dis allow 250
Salary 800
Rent 2000
BDR (w.n 1) 75
BD 150
General expense 1300
Ins exp (w.n 2) 250

So np = 13800

W.N 1
Total debtors 5000
BDR 5% = 250
But 175 Already bal is there so 75(250-175) charged to p& l a/c

W.N 2
Insurance exp 50 out of 300 is unexpired so it'll carry forward in b/s
Net 250(300-50) charged to p&l

As per my opinion plant is 18000 but you not mention rate of dep.
I think rate if dep is also given in sum.
If not than ignore.

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vinay

Mayur Patil

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