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i) From the following Trial Balance of XYZ Traders, prepare the (a) Trading and Profit & Loss Account (b) Balance Sheet Additional Information:  Closing Stock 7,400  Depreciation on machinery 10%, furniture 20% and motor vehicle 5% on cost.  Write off Rs. 400 as further bad debts and create a reserve on bad and doubtful debts at 4% and reserve for discount on sundry debtors at 2.5%.  Salaries payable Rs. 450  Rent paid in advance Rs. 500  Purchased goods (50 units @ Rs.100) from a supplier on credit basis but not recorded ii) Analyze the Financial Position of the XYZ Traders by keeping in view Trading and Profit & Loss Account and Balance Sheet you prepared. As an investor, what you will decide about investment in the company

i) From the following Trial Balance of XYZ Traders, prepare the (a) Trading and Profit & Loss Account (b) Balance Sheet Additional Information:  Closing Stock 7,400  Depreciation on machinery 10%, furniture 20% and motor vehicle 5% on cost.  Write off Rs. 400 as further bad debts and create a reserve on bad and doubtful debts at 4% and reserve for discount on sundry debtors at 2.5%.  Salaries payable Rs. 450  Rent paid in advance Rs. 500  Purchased goods (50 units @ Rs.100) from a supplier on credit basis but not recorded ii) Analyze the Financial Position of the XYZ Traders by keeping in view Trading and Profit & Loss Account and Balance Sheet you prepared. As an investor, what you will decide about investment in the company

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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i) From the following Trial Balance of XYZ Traders, prepare the (a) Trading and Profit & Loss Account (b) Balance Sheet

Additional Information:
 Closing Stock 7,400
Depreciation on machinery 10%, furniture 20% and motor vehicle 5% on cost.
 Write off Rs. 400 as further bad debts and create a reserve on bad and doubtful
debts at 4% and reserve for discount on sundry debtors at 2.5%.
 Salaries payable Rs. 450
 Rent paid in advance Rs. 500
 Purchased goods (50 units @ Rs.100) from a supplier on credit basis but not recorded

ii) Analyze the Financial Position of the XYZ Traders by keeping in view
Trading and Profit & Loss Account and Balance Sheet you prepared.
As an investor, what you will decide about investment in the company

 

 

Rs. Rs. Capital Machinery Fumiture 49,250 23,500 7,500 8,700 8,250 10,560 Opening Stock Cash in bank Cash in hand Account Payable 12,000 Purchases 39,200 Sales 63,850 1,610 Sundry Creditors Sundry Debtors Wages Drawings Sales Return Rent 4,150 3,920 1,500 250 6,000 1,500 2,240 1,500 190 Advertising Salaries Mics. Expenses Utility Bills Carriage Inward Carriage Outward 500 1,000 750 Bad debts reserve Discount Received 500 Motor Vehicle 8,000 Loan 3,000 Bad debts 1,000 130,210 130,210
Transcribed Image Text:Rs. Rs. Capital Machinery Fumiture 49,250 23,500 7,500 8,700 8,250 10,560 Opening Stock Cash in bank Cash in hand Account Payable 12,000 Purchases 39,200 Sales 63,850 1,610 Sundry Creditors Sundry Debtors Wages Drawings Sales Return Rent 4,150 3,920 1,500 250 6,000 1,500 2,240 1,500 190 Advertising Salaries Mics. Expenses Utility Bills Carriage Inward Carriage Outward 500 1,000 750 Bad debts reserve Discount Received 500 Motor Vehicle 8,000 Loan 3,000 Bad debts 1,000 130,210 130,210
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