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Mohit Udyog operates a general business and the firm's Trial Balance prepared at 31.12.

2001 was as follows:


P a rticu la rs P u rch as e s : C a rs P etro l S p a re p a rts C a p ital S to ck o n 1 .1 .20 0 1 : C a rs P etro l S p a re pa rts W o rks h o p w a g e s P la n t an d E qu ip m en t C a r s a le sm e n 's sa la rie s G e n era l e xp en s e s O ffice w a a es D r. (R s) 83 ,5 0 0 27 ,5 0 0 4 ,0 0 0 9 ,0 0 0 2 ,80 0 400 10 ,2 0 0 7 ,0 0 0 7 ,7 0 0 6 ,30 0 5500 C r. (R s ) P a rticu la rs D eb to rs a n d C re d ito rs Bank Cash 62 ,0 0 0 F re e h o ld G a rag e P rem is e s R a te s a n d in su ra n ce S a le s : C a rs P e tro l S p a re p a rts R e p a irs P etro l p u m p a tten d a n t's w a g es G o o d w ill T o ta l D r. (R s ) 1 4 ,0 0 0 4 ,7 0 0 2 ,0 0 0 4 2 ,0 0 0 1 ,9 0 0 C r. (R s) 1 0 ,8 0 0

1 ,2 0 ,0 0 0 3 2 ,0 0 0 4 ,7 0 0 1 4 ,7 0 0 3,1 0 0 1 2 ,6 0 0 2 4 4 .2 0 0 244200

Other information is as follows: (1) The plant and equipment, all of which is used for repair work, is to be depreciated by 10%. (2) Stocks at 31.12.200] wereCars Rs 7,400; Petrol Rs 1,600; Spare parts Rs 700. (3) No entries have been made for the following (i) Petrol used in demonstration runs cost Rs 200; (ii) Parts used in repair jobs cost Rs 750; (iii) Repairs on cars subsequently sold were charged out at Rs 2,400. (4) Expenses which cannot be specifically allocated to one activity are to be apportioned60% to Cars; 10% to Petrol; 10% to Spare parts; 20% to Repairs. (5) General expenses accrued amount to Rs 300, and a provision is to be made ofRs 500 for car salesmen's commission. Prepare Trading and Profit and Loss Account, preferably in columnar form, to show clearly the profit or loss in each )f the four main areas of business activity for the year ended 31.12.2001. Also prepare the Balance Sheet at that date.

Raman carries on a business of selling (both wholesale and retail) electrical materials. The wholesale and retail departments are separately organised, all goods are purchased by the wholesale department which adds one-seventh on to cost for charging out goods transferred to the retail department. At 31.12.2000, the total balance of the business as a whole is as follows:
P articu lars C apital Freeh old P rem ises M o to r V an s: C o st an d A ccu m u la ted D ep reciatio n (1 .1 .2 00 0 ) M o to r C ars: C o st an d A ccu m ulated D eIJ re cia tio n (1.1.20 0 0 ) Fixtu re s etc : C o st an d A ccu m u lated D ep recia tion (1 .1 .2 0 00 ) S to ck (1.1.20 0 0 ) : W ho lesale at C o st R etail an d p ro vision fo r u n realised p rofit D ebtors (3 1 .1 2 . 20 00 ) : W h o les ale cu sto m ers o nly C red ito rs (3 1 .1 2. 200 0 ) B ad D eb ts D isco u nt R ece ive d D isco u nt A llow ed S alaries: V an drivers W areh o u se staff S h o p staff C ar an d V an run n in g exp en ses O th er E xp en ses S ale s: W ho lesa le R eta il P u rch ase s C ash an d B an k (31 .1 2 . 20 00) R eserve
T o tal

D r. (R s) 6 5 ,0 00 9,0 0 0 6,0 0 0 7,8 0 0 6 5 ,0 00 3 2,0 00 6 7,1 00 6,8 0 0 8,5 0 0 8,8 0 0 2 4 ,3 00 8,2 5 0 5,4 0 0 1 5,5 00 3,2 8,0 00 400 6,5 7,8 50

C r.(R s) 1,0 0,0 00 4,0 0 0 3,0 0 0 7,3 0 0 4,0 0 0 4 1 ,2 00 4,8 5 0

3,4 0,0 00 9 6 ,0 00 2 1,8 00 3 5,7 00 6 ,57,8 50 -

(N O le 4 a ) T o C a r R u n n in g E xp e n se s (N o te 4 b) T o O th e r E xp e n se s T o D e p re cia tio n o n V a n s (3 : 1 ) C a rs (2 : 1 ) T o N e t P ro fit c1 d

1 ,2 0 0 1 2 ,4 0 0

60 0 3 ,1 0 0

1 ,8 0 0 1 5 ,5 0 0

1 ,3 5 0 450 1 ,8 0 0 80 0 400 1 ,2 0 0 34 ,7 0 0 8 ,1 0 0 4 2 ,8 0 0 9 9 ,3 5 0 24 ,0 0 0 1 ,2 3 ,3 5 0 9 9 ,3 5 0 2 4 ,0 0 0 1 ,2 3 ,: T o P ro v isio n fo r U nre a lise d P ro fit on C lo sin g S to ck (N o4 ,5 5 ) B y R e s e rvbeid te 0 0 35: T o R e se rve c ld 7 8 ,0 0 0 B y P ro vis io n fo r U nre a lis e d P ro fit o n O p e n in g S to ck 4 ,1 B y N e t P rob id fit 4 2 ,1 8 2 ,5 0 0 8 2 ,~

Balance Sheet of Raman as at 31st December, 2000


L ia b ilitie s C a p ita l R e se rv e C re d ito rs B a n k O ve rd ra ft Rs A ss e ts 1 ,0 0 ,0 0 0 F re e h o ld P re m ise s 7 8 ,0 0 0 M o to r V a n s (a t co st) 9 ,0 0 0 4 1 ,2 0 0 L e s s: A ccu m u la te d D e p re cia tio n 5 ,8 0 0 2 1 ,8 0 0 M o to r C a rs (a t co st) 6 ,0 0 0 L e s s: A ccu m u la te d D e p re cia tio n 4 ,2 0 0 F ix tu re s (a t co st) 7 ,8 0 0 L e s s: A ccu m u la te d D e p re cia tio n 7 ,3 0 0 S to ck 1 ,0 7 ,5 0 0 L e s s: P ro vis io n fo r U nre a lis e d P ro fit ~ D e b to rs C a sh 2 ,4 1 ,0 0 0 Rs 6 5 ,1 3 ,: 1 ,1

~
1 ,0 3 ,1 67 , 2 ,4 1 ,1

Additional information (i) Transfers of goods amounted to Rs 76,000 at transfer prices. (ii) Stocks at 31.12.2000 : Wholesale at cost Rs 71,500; Retail at transfer price Rs 36,000. (iii) There are four vans, one of which is likely to be in use by the retail department at anyone time. (iv) The two cars are used by X, who divides their time between the two departments as to two-thirds wholesale and onethird retail. (v) Depreciation of cars and vans is at 20% p.a. on cost. It is estimated that the remaining costs of a car and a van (excluding drivers' wages) do not differ materially. (vi) Other expenses are 80% wholesale. (vii) No further depreciation need be provided on fixtures etc. You are required to prepare Trading and Profit and Loss Account for the year ended 31.12.2000 and Balance Sheet as m that date: