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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
i) From the following
Additional Information:
Closing Stock 7,400
Write off Rs. 400 as further
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
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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