Plz solve it On 31st December, 2008 the following Trial balance was extracted from the books
or a merchant:
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Final Accounts With Adjustment
Interest on Loan
Cash in hand
Stæk on 1st Jan. 2008
Cash at Bank
Land and Buildings
Rates. Taxes and Insurance
Loan on Mortgage
Bad Debts Reserve
Prepare Trading and Profit and loss account for the year ended 31st December,
Balance sheet as on that date after making adjustment for the following
Depreciate land and buildings at 11/2 and motor vehicles at 10%.
Interest on loan at 6 per cent per annum is unpaid for six months.
Goods costing Rs. 2000 were sent to a customer on sale or return for
Rs. 3000 on 30th December, 2008 and has been recorded in the- books
as actual sales.
Salaries amounting to Rs. 120 and rates amounting to Rs. 100 are
Prepaid insurance amounted to Rs. 80.
The provision for bad debts is to be maintained at 5% on sundry debtors.
Provide for Manager's commission at on net profits after charging
Stock in hand on 31s1 Decembet, 2004 was valued at Rs 40000.