The following Trial balance was extracted from the books of Gulzar Traders on 31st?

The following Trial balance was extracted from the books of Gulzar Traders on 31st

December 2007. You are required to prepare Income Statement for the year ended 31st

December, 2007 and a Balance Sheet as at that date:

Debit balance
Rs.
Credit balance
Rs.

Stock on (1st January, 2007)

Purchases

Bills Receivable

Cash in hand

Returns

Furniture

Office Expense

Bad Debts

Drawings

Sundry Debtors

Investment

Insurance

Telephone Expenses

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Total
13,000

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49,000

12,000

6,000

5,000

2,400

7,800

2,000

5,600

20,000

16,000

2,000

2,200

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143,000
Bad Debts provision

Discount Received

Bank Overdraft at 15%

Sales

Returns

Creditors

Bills payable

Capital

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Total 4,000

2,600

8,000

61,000

9,000

7,400

11,000

40,000

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143,000

Adjustments:

1. Closing stock is valued at Rs. 19,000.

2. Interest accrued on Investment is Rs. 840.

3. Bad debts reserve is to be maintained at Rs. 2,000.

4. Depreciate furniture at 10 %.

5. Insurance prepaid is Rs. 200.

6. There is a contingent liability of Rs. 1,000

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Question-2 (Marks: 10)

The financial year of Ali & Co is closed on June 30, 2007. Data regarding Ali & Co is

Given below:

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Opening balance Rs.

Debtors 75,000

Creditors 125,000

Closing balance

Debtors 100,000

Creditors 150,000

Sales

Cash 100,000

Credit 1 30,000

Purchases

Cash 80,000

Credit 100,000

Purchase returns (From credit purchases) 5,000

Receipts from debtors ?

Payments to creditors ?

Discount allowed 2,000

Discount received 5,000

Bad debts written off 13,000

Increase in provision for doubtful debts 2,500

Required:

Prepare Debtors control account and Creditors control account.

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This question is incomprehensible. What's all this

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