Creditors include a balance of Rs. 4,000 to the credit of Mr. B in respect of it has been decided and settled with the party to pay only Rs. 1,000. Sales include goods worth Rs. 15,000 sent to Ram and Co. on approval and remaining unsold as on 31st March 1989 the cost of goods was Rs. 10,000 Provision for bad debts is to be created at 5% on Sundry Debtors. Depreciate Furniture by 15% and Car by 20%. The Salesmen are entitled to a commission of 10% on sales. Q. 8 Given below is the balance of Mr. Alok, a trader, as on 31st March, 2006: Particulars Debit Credit Cash in hand 5000 Land and building 80000 Trial and Machinery 50000 Debtors and Creditors 40000 on 1.4.2005 10000 15% investment on 1.4.2005 20000 Purchase and 190000 Bank Overdraft 20000 Wages 28000 Salaries 16000 Rent, Rates and Taxes 15000 Bad Debts 6000 Drawings 5000 Bills receivable and bills payable 15000 Carriage inwards 6000 Custom duty on purchases 16000 Life insurance premium 4000 Advertisement 30000 Provision for doubtful debts 2000 Interest on investment 2000 Trade expenses 11000 Furniture 20000 Sales tax payable 25000 Capital 157000 457000 457000 Additional informations: on 31.3.2006 was valued at Rs. 40000. Included in debtors are Rs. 8000 due from Ram and included in creditors are Rs. 6000 due to Ram. Bills receivable include a bill of Rs. 5000 received from Varun, which has been dishonored.
Creditors include a balance of Rs. 4,000 to the credit of Mr. B in respect of it has been decided and settled with the party to pay only Rs. 1,000. Sales include goods worth Rs. 15,000 sent to Ram and Co. on approval and remaining unsold as on 31st March 1989 the cost of goods was Rs. 10,000 Provision for bad debts is to be created at 5% on Sundry Debtors. Depreciate Furniture by 15% and Car by 20%. The Salesmen are entitled to a commission of 10% on sales. Q. 8 Given below is the balance of Mr. Alok, a trader, as on 31st March, 2006: Particulars Debit Credit Cash in hand Land and building and Machinery Debtors and Creditors on 1.4.2005 15% investment on 1.4.2005 Purchase and Bank Overdraft Wages Salaries Rent, Rates and Taxes Bad Debts Drawings Bills receivable and bills payable Carriage inwards Custom duty on purchases Life insurance premium Advertisement Provision for doubtful debts Interest on investment Trade expenses Furniture Sales tax payable Capital 5000 80000 50000 10000 20000 28000 16000 15000 6000 5000 15000 6000 16000 4000 30000 11000 20000 457000 40000 190000 20000 2000 2000 25000 157000 457000 Additional informations: on 31.3.2006 was valued at Rs. 40000. Included in debtors are Rs. 8000 due from Ram and included in creditors are Rs. 6000 due to Ram. Bills receivable include a bill of Rs. 5000 received from Varun, which has been dishonored. Trial
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