On 1.4.2008, Mrs. Parul commenced business. She did not maintain proper books of accounts. At the end of the year following information was obtained after going through the records:
- All cash received on cash sales was banked after keeping Rs 2000 p.m. for petty expenses and after withholding monthly drawing of Rs 1,000.
- Counterfoils of pay-in-slips the following deposits.
|
Rs
|
|
Capital contributed Mrs. Parul
|
2,00,000
|
|
Balance of Cash sales
|
1,56,000
|
|
Collection from Debtors
|
2,00,000
|
- Counter foils cheques revealed the following payments:
|
Rs
|
|
Payment to Creditors
|
3,00,000
|
|
Payment of Salary
|
70,000
|
|
Purchase of Furniture
|
20,000
|
- Sales were effected at a uniform rate of gross profit at 25% on sales.
- Discount allowed Rs.4,000; Discount received Rs.6,000; Bad debts Rs.2,000.
- Petty cash expenses were postage Rs 400; Stationery Rs 2,000; Conveyance Rs 4,000 and rent Rs 4,400.
- On 31.3.2009, amount due by debtors Rs 20,000 and the amount owing to creditors were Rs 40,000.
Prepare Trading and Profit and Loss Account for the year ended 31.3.2009 and a Balance Sheet as on that date.