Contents · Part 29

31st March, Liabilities Assets Capital Less: Net loss Add: Interest on capital Less: Drawings and Interest on drawings ( + ) Sundry creditors , , , , , , , , , , , , Goodwill Business premises Stock in trade Sundry debtors Less: Bad debts Less: Provision for bad and doubtful debts ( , x / ) Bills receivable Cash at bank Cash in hand , , , , , , , , , , , , , , , Illustration From the trial balance of Ajith and the adjustments given below, prepare trading and profit and loss A/c for the year ended 31st March, and the balance sheet as on that date. Accountancy Debit ` Credit ` Opening stock Furniture and fixtures Purchases Sales returns Carriage inwards Office rent Sundry debtors Bank balance Bad debts , , , , , , , , Capital Returns outward Bills payable Sales Provision for doubtful debts Provision for discount on debtors , , , , , , , , , Adjustments: (a) Stock at the end of the year was ` , (b) Further bad debts amounted to ` (c) Create % provision for doubtful debts on sundry debtors (d) Create % provision for discount on sundry debtors In the books of Ajith Dr. Trading and Profit and Loss Account for the year ended 31st March, Cr. To Opening Stock To Purchases Less: Returns outward To Carriage inwards To Gross profit c/d To Office rent To Provision for bad and doubtful debts (closing) Add: Bad debts Add: Further bad debts Less: Provision for bad and doubtful debts (opening) To Provision for discount on debtors (closing) Less: Provision for discount on debtors (opening) To Net profit (transferred to capital A/c) , , , , , , , , , , , By Sales Less: Sales returns By Closing stock By Gross profit b/d , , , , , , , , , , , Accountancy Balance Sheet as on 31st March, Liabilities Assets Capital Add: Net profit Bills payable ,