ParticularsDr. AmountParticularsCr. AmountPurchases4,00,000Capital3,00,000Opening Stock3,50,000Purchase return10,000Sales return10,000Sales6,90,000Carriage…

ParticularsDr. AmountParticularsCr. AmountPurchases4,00,000Capital3,00,000Opening Stock3,50,000Purchase return10,000Sales return10,000Sales6,90,000Carriage inward8,000Creditors33,000Debtors42,000Bank loan80,000Advertisement Expenses14,000Discount2,000Insurance expenses10,000Salaries65,000Interest on bank loan4,000General expenses20,000Wages40,000Furniture50,000Rent paid40,000Bad debt3,000Bank and cash balance55,000Total11,10,000Total11,10,000Additional Information: i. Closing stock Rs. 3,75,000 ii. Bad debts Rs. 2,000 iii. Provide reserve for bad debts 5% of debtors iv. Advance for salaries Rs. 5,000 v. Outstanding wages Rs. 2,000 vi. Outstanding interest of bank loan Rs. 4,000 vii. Depreciation furniture at 5% p.a. Required: a) Trading Account b) Profit and loss account c) Balance sheet [3+4+3]

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