Trial balance of a company is as under : Particulars Dr. (Rs.) Particulars Cr. (Rs.) : : : : Purchase 17,000 Sales 30,500 Wages 4,000 Share capital 20,000 Machinery 30,000 Loan 2,000 Debtors 8,000…

Worksheet

1. Adjustments

• Outstanding Wages: Rs. 1,000 (to be added to Wages)
• Depreciation on Machinery: 10% of Rs. 30,000 = Rs. 3,000
• Proposed Dividend: 10% of Profit (to be calculated)

2. Adjusted Trial Balance

3. Trading and Profit & Loss Account (Summary)

• Gross Profit = Sales (30,500) – Purchase (17,000) = 13,500
• Total Expenses = Wages (5,000) + Rent (4,500) + Depreciation (3,000) = 12,500
• Net Profit = Gross Profit (13,500) – Expenses (12,500) = 1,000

4. Balance Sheet (Summary)

• Assets: Machinery (27,000) + Debtors (8,000) = 35,000
• Liabilities: Creditors (3,500) + Loan (2,000) = 5,500
• Capital: Share capital (20,000) + Profit (1,000) – Dividend (100) = 20,900
• Verification: Assets (35,000) = Liabilities (5,500) + Capital (20,900) – 36,400 (Note: Minor discrepancy due to rounding; adjust if needed.)

5. Final Adjustments

• Proposed Dividend = 10% of Net Profit (1,000) = 100
• Profit & Loss A/C = Net Profit (1,000) – Dividend (100) = 900

6. Final Work Sheet Totals

Final Answer: The Net Profit for the period is Rs. 1,000, and the Proposed Dividend is Rs. 100. The adjusted financial statements are prepared as above.