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

Balance Sheet
Dr.Cr.
Cash in hand2,000
Cash at bank18,000
Purchases and sales3,50, 000
Return inwards2,20, 000
Return outwards6,000
Carriage on purchases4,400
Carriage on sales2,100
Fuel and power15,500
Stock (1 - 1-1993)36,000
Bad debts6,200
Bad debts provision2,500
Debtors and creditors30,000
Capital82,000
Investments20,000
Interest on investment2,000
Loan from X@18 % p. a.10,000
Repairs1,520
General Expenses10,600
Land and building1,80, 000
Wages and salaries18,000
Miscellaneous Receipts120
Bills payable5,200
Stationery2000

Explanation

Prepare Trading and Profit and Loss Account for the Company as on st December, 1993
ParticularsAmountParticularsAmount
To Stock 1 - 1-199336000By sales3,50, 000
To Purchases220000Less: return Inward6,0003,44, 000
Less; Return Outwards7500212500By closing stock50,000
To carriage on purchases4400
To fuel and power15,500
To wages and salaries6,000
To gross profit c/d1,19, 600
3,94, 0003,94, 000
To carriage on sales2,1001,19, 600
To wages and salaries12,00By gross profit b/d
To repairs1,520By interest on investment
To general expenses10,600By miscellaneous Receipts
Less: prepaid insurance30010,300
To bad debts6200
Add: Further bad debts2000
Add: New provision for

doubtful debts

4000
12000
Less: Old provision25009,700
To outstanding Interest1200
To net profit transferred to capital a/c84900
1,21, 7201,21, 720

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