Arun carries on hardware business and does not keep his books on double entry basis. The following particulars have been extracted from his books:.
| Particulars |
31.12.2017
Rs. |
31.12.2018
Rs. |
| Land and building |
2,40,000 |
2,40,000 |
| Stock-in-trade |
1,20,000 |
1,70,000 |
| Debtors |
40,000 |
51,500 |
| Creditors |
50,000 |
45,000 |
| Cash at bank |
30,000 |
53,000 |
Other information for the year ending 31.12.2018 showed the following:
| |
Rs. |
| Wages |
65,000 |
| Carriage outwards |
7,500 |
| Sundry expense |
28,000 |
| Cash paid to creditors |
6,00,000 |
| Drawings |
10,000 |
Total sales during the year were Rs.7,70,000. Purchases returns during the year wereRs.30,000 and sales returns were Rs.25,000. Depreciate land and buildings by 5%. Provide Rs.1,500 for doubtful debts. Prepare trading and profit and loss account for the year ending 31st December, 2018 and a balance sheet as on that date.
