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7. From the following Trial Balance of Sh. Rama Nand Sagar, prepare Trading and Profit & Loss

Account for the year ended 31st December, 2010 and a Balance Sheet as on that date:-

Dr. Balances Rs. Cr. Balances Rs.

Opening Stock 20,000 Sales 2,70,000 Purchases 80,000 Purchase Return 4,000 Sales Return 6,000 Discount 5,200

Carriage Inwards 3,600 Sundry Creditors 25,000 Carriage Outwards 800 Bills Payable 1,800

Wages 42,000 Capital 75,000

Salaries 27,500

Plant & Machinery 90,000

Furniture 8,000

Sundry Debtors 52,000

Bills Receivable 2,500

Cash in Hand 6,300

Travelling Expenses 3,700

Lighting 1,400

Rent and Taxes 7,200

General Expenses 10,500

Insurance 1,500

Drawings 18,000

3,81,000 3,81,000


(1) Stock on 31st December, 2010 was valued at Rs. 24,000 (Market Value Rs. 30,000).

(2) Wages outstanding for December, 2010 amounted to Rs. 3,000.

(3) Salaries outstanding for December, 2010 amounted to Rs. 2,500.

(4) Prepaid insurance amounted to Rs. 300.

(5) Provide depreciation on Plant and Machinery at 5% and on Furniture at 20%.

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