Manager is entitled to a commission of 5% on net profits after charging his commission. Q. 10 From the following balance of a trader on 31st March, 2005, prepare Trading and Profit and Loss account for the year ending 31st March, 2005 and Balance Sheet as at that date after giving effect to the under mentioned adjustments: Debit Balances Rs. Credit Balance Rs. Drawings 6000 Bank Overdraft Wages Interest on investment 5800 Stock 12800 Bills Payable 4600 Loan to X 4000 Interest on loan to X 320 Rent 5000 Capital 100000 General Expenses 1480 Reserve for Bad Debts 250 Investments 60000 Sales 230000 Purchases 160000 Sundry Creditors Freight and cartage 2100 Goodwill 40000 Bills Receivable 6200 Rates and Taxes 1800 Sales Returns 2100 Insurance 900 Cash and Bank Balance 3700 Postage and Telegram 3800 Land and Building 25000 Plant and machinery 10000 Sundry Debtors 16500 Packing charges 400 Bad Debts 1280 378560 378560 Adjustments:
Manager is entitled to a commission of 5% on net profits after charging his commission. Q. 10 From the following balance of a trader on 31st March, 2005, prepare Trading and Profit and Loss account for the year ending 31st March, 2005 and Balance Sheet as at that date after giving effect to the under mentioned adjustments: Debit Balances Rs. Credit Balance Rs. Drawings Wages Stock Loan to X Rent General Expenses Investments Purchases Freight and cartage Goodwill Bills Receivable Rates and Taxes Sales Returns Insurance Cash and Bank Balance Postage and Telegram Land and Building Plant and machinery Sundry Debtors Packing charges Bad Debts 6000 12800 4000 5000 1480 60000 160000 2100 40000 6200 1800 2100 900 3700 3800 25000 10000 16500 400 1280 378560 Bank Overdraft Interest on investment Bills Payable Interest on loan to X Capital Reserve for Bad Debts Sales Sundry Creditors 5800 4600 320 100000 250 230000 378560 Adjustments:
bcom_notes.docx