a)
Trading and profit andloss a/c for the year ended 31.12.2014 | |||
particulars | amount($) | particulars | amount($) |
to purchase | 200000 | by sale | 370000 |
to gross profit | 240000 | by closing stock | 70000 |
total | 440000 | total | 440000 |
by gross profit | 240000 | ||
toemployees | 140000 | ||
to rent | 45000 | ||
to insurance | 17000 | ||
to interest on loan | 16000 | ||
to depreciation(20%*80000) | 16000 | ||
to net profit | 6000 | ||
total | 240000 | total | 240000 |
b)
bank a/c | |||
to capital | 120000 | by creditors | 165000 |
to cash(debtors) | 310000 | by equipment | 80000 |
to loan a/c | 200000 | by employees | 140000 |
by rent | 45000 | ||
by insurance | 17000 | ||
by drawingsa/c | 40000 | ||
by loan a/c | 45000 | ||
by balance c/d | 98000 | ||
total | 630000 | total | 630000 |
loan a/c | |||
to bank a/c(loan repayment) | 45000 | by banka/c(loan transfer) | 200000 |
to balance c/d | 171000 | by interest | 16000 |
total | 216000 | total | 216000 |
creditors a/c | |||
to bank | 165000 | by purchase | 200000 |
to balance c/d | 35000 | ||
total | 200000 | total | 200000 |
debtors a/c | |||
to sale | 370000 | by bank | 310000 |
by balance | 60000 | ||
total | 370000 | total | 370000 |
c)
BALANCE SHEET AS AT 31.12.2014 | |||
liabilities | amount | asset | amount |
capital a/c: | equipment(80000-16000) | 64000 | |
capital a/c-120000 | 86000 | debtors | 60000 |
less:drawings:40000 | bank a/c | 98000 | |
add:net profit:6000 | closing stock | 70000 | |
creditors | 35000 | ||
loan | 171000 | ||
total | 292000 | total | 292000 |
d)in order to obtain the detailed understanding the position of the business,say whether it is going in loss or profit,or to timely capturing of due date of amount payable to supplier or collectable from debtors a proper accounting should maintain.and also to comply somany statutory compliences proper accounting is required.
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