Pandian does not keep his books under double entry system. From the following information prepare trading and profit and loss account and balance sheet as on 31-12-2018.
| |
1-1-2018
Rs. |
31-12-2018
Rs. |
| Furniture |
30,000 |
30,000 |
| Cash in hand |
10,000 |
17,000 |
| Debtors |
40,000 |
60,000 |
| Stock |
28,000 |
11,000 |
| Bills receivable |
12,000 |
35,100 |
| Bank loan |
25,000 |
25,000 |
| Creditors |
15,000 |
16,000 |
| |
Rs. |
|
Rs. |
| Cash sales |
11,200 |
Credit sales |
88,800 |
| Cash purchases |
4,250 |
Credit purchases |
35,750 |
| Carriage on purchases |
3,000 |
Carriage on sales |
700 |
| Commission received |
600 |
Interest on bank loan |
2,500 |
| Drawings |
8,000 |
Additional capital |
14,000 |
| Salaries |
8,900 |
Office rent |
2,400 |
Adjustments:
Write off depreciation of 5% on furniture. Create a provision of 1% on debtors for doubtful
debts.
