A-AS Level (CIE) Accounting Paper-2: Specimen Questions with Answers 44 - 44 of 53
Question 44
Write in Short Short Answer▾
Prepare Trading and profit and loss account for the company as on 31st December, 1993
Dr. | Cr. | |
Cash in hand | 2,000 | |
Cash at bank | 18,000 | |
Purchases and sales | 3,50, 000 | |
Return inwards | 2,20, 000 | |
Return outwards | 6,000 | |
Carriage on purchases | 4,400 | |
Carriage on sales | 2,100 | |
Fuel and power | 15,500 | |
Stock (1 - 1-1993) | 36,000 | |
Bad debts | 6,200 | |
Bad debts provision | 2,500 | |
Debtors and creditors | 30,000 | |
Capital | 82,000 | |
Investments | 20,000 | |
Interest on investment | 2,000 | |
Loan from X@18% p. a. | 10,000 | |
Repairs | 1,520 | |
General Expenses | 10,600 | |
Land and building | 1,80, 000 | |
Wages and salaries | 18,000 | |
Miscellaneous Receipts | 120 | |
Bills payable | 5,200 | |
Stationery | 2000 |
Explanation
Particulars | Amount | Particulars | Amount | ||
To Stock 1 - 1-1993 | 36000 | By sales | 3,50, 000 | ||
To Purchases | 220000 | Less: return Inward | 6,000 | 3,44, 000 | |
Less; Return Outwards | 7500 | 212500 | By closing stock | 50,000 | |
To carriage on purchases | 4400 | ||||
To fuel and power | 15,500 | ||||
To wages and salaries | 6,000 | ||||
To gross profit c/d | 1,19, 600 | ||||
3,94, 000 | 3,94, 000 | ||||
To carriage on sales | 2,100 | 1,19, 600 | |||
To wages and salaries | 12,00 | By gross profit b/d | |||
To repairs | 1,520 | By interest on investment | |||
To general expenses | 10,600 | By miscellaneous Receipts | |||
Less: prepaid insurance | 300 | 10,300 | |||
To bad debts | 6200 | ||||
Add: Further bad debts | 2000 | ||||
Add: New provision for doubtful debts | 4000 | ||||
12000 | |||||
Less: Old provision | 2500 | 9,700 | |||
To outstanding Interest | 1200 | ||||
To net profit transferred to capital a/c | 84900 | ||||
1,21, 720 | 1,21, 720 |