From the following particulars presented by Thilak for the year ended 31st March 2017, prepare profit and loss account.
| Particulars |
Rs. |
Particulars |
Rs. |
| Gross profit |
1,00,000 |
Interest received |
6,000 |
| Rent paid |
22,000 |
Bad debts |
2,000 |
| Salaries |
10,000 |
Provision for bad debts (1-4-2016) |
4,000 |
| Commission (Cr.) |
12,000 |
Sundry debtors |
40,000 |
| Discount received |
2,000 |
Buildings |
80,000 |
| Insurance premium paid |
8,000 |
|
|
Adjustments:
(a) Outstanding salaries amounted to Rs. 4,000
(b) Rent paid for 11 months
(c) Interest due but not received amounted to Rs. 2,000
(d) Prepaid insurance amounted to Rs. 2,000
(e) Depreciate buildings by 10%
(f) Further bad debts amounted to Rs. 3,000 and make a provision for bad debts @ 5% on sundry debtors
(g) Commission received in advance amounted to Rs. 2,000.
