IV – Essay Questions (Answer Any Two Questions

IV –Essay Questions (Answer Any TwoQuestions)

29)Sunil keeps his books on single entry system. From the following information provided by him prepare a trading and profit and loss account for the year ended 31st December 2011 and a balance sheet on that date.

Particular	31‐12‐2010	31‐12‐2011
Furniture Stock Sundry debtors Prepaid expenses Sundry creditors Outstanding expenses cash	10000 6000 12000 ………... 5000 1400 2400	12000 3000 13000 500 ………. 2200 800

Receipts and payment account during the year was as follows

Received from debtors         40500

Paid to creditors                   19000

Carriage inwards                  4500

Drawings                                10000

Sundry expenses                   12500

Furniture purchased            2000

Other information

There were considerable amount of cash sales. Credit purchases during the year amounted to Rs 24000.create a provision of 10% on debtors for doubtful debts.