Practical Problem 06

In the books of Archana and Prerana
Dr Trading and Profit and loss accounts for the year ended 31st March,2019 . Cr
Particular	₹	₹	Particular	₹	₹
To Opening Stock		8,560	By Sales	30,200
To Purchase	23,700		Less: Sales return	-400	29,800
Less: Purchase Return	-1,000	22,700
To wages	950		By Closing Stock		12,000
Add: Outstanding	300	1250
To Heating & Lighting		1,000
To Gross Profit c/d		8,290
		41,800			41,800
To Electric Charges	1,450		By Gross Profit b/d		8,290
Add: Outstanding	200	1,650	By Interest		310
To Trade Expenses		850
To Bad Debts (old)	200
Add: New Bad Debts	800
	1000
Less: Old R.D.D	-500	500
To Patent Written off		250
To Depreciation
Land & Building	2,200
Furniture	525	2,725
To Interest on Capital
Archana	1,200
Prerana	600	1,800
To Net Profit
Archana	550
Prerana	275	825
		8,600			8,600

Balance Sheet as on 31st March,2019 .
Liabilities	₹	₹	Asset	₹	₹
Capital A/c			Land & Building	22,000
Archana	40,550		Less: Depreciation @ 10%	-2,200	19,800
Prerana	19,975	60,525	Furniture	13,000
			Less: Depreciation @ 5%	-525	12,475
Other Loans		3,000	Patent	2,000
Reserve Fund		1,000	Less: Written off (1/8)th	-250	1,750
Creditor		17,500	Trade Mark		2,000
Bills Payable		5,000	Investment		7,500
Outstanding wages		300	Sundry Debtor	18,500
Outstanding Electric Charges		200	Less: New Bad Debts	-800	17,700
			Stock of stationary		3,000
			Bill Receivable		6,300
			Cash at Bank		5,000
			Closing Stock		12,000
		87,525			87,525