Please solve this:
The following are the balances taken from the books of meena
ltd. On 31st december 2011:
Stock on 1-1-2011 15,000 Salaries 800
Debtors 5,000 Bank account 3,400
Wages 8,000 Rent 2,000
Creditors 6,000 Bad debts reserve 175
Sales 40,000 Discount allowed 250
P&l a/c 3,500 Bad debts 150
Returns inward 500 General expenses 1,300
Purchases 6,000 Insurance 300
Plant 18,000 Dividend (interim) 575
Discounts earned 200 Capital 12,000
Cash in hand 600
Closing stock was valued at rs.9,000. Rs.500 still due to labourers.
Insurance unexpired rs.50. Provide for a bad debts reserve of 5% and a
reserve for discount at 1%. Prepare trading and profit and loss account as
at 31st december 2011.
CAclubindia
