Solve these question? Transcribed Image Text: LEARNING OBJECTIVES: To develop an understanding of the basic concepts regarding the topics Fixed Assets and Depreciation, Provision for doubtful debts and Financial Statements

Solve these question? Transcribed Image Text: LEARNING OBJECTIVES:
To develop an understanding of the basic concepts regarding the topics Fixed
Assets and Depreciation, Provision for doubtful debts and Financial Statements
QUESTION
Following information is extracted from the books of a business concem on 30″ June
2021.
Particulars
Rs.
Particulars
Rs.
Opening stock
15,000 Net sles
65,000
Plant and Machinery
100,000 Bank charges
5,453
Accumulated depreciation
and Machinery
Plant
20,000 Loan given to ABC Brothers.
40,000
Cash in hand
12,800 Capital
250,000
Cost of goods sold
25,000 Loan taken from bank
50,000
Creditors
54,000 Commission received
10,000
Sundry debtors
20,000 Return inwards
5,000
Bad debts
1,575 Carriage outwards
450
ADDITIONAL INFORMATION:
In addition to the value of Plant & Machinery given in the above information, one
machine costing to Rs. 30,000 was bought on 1″ April 2021. Basis/Policy of
charging depreciation is Time Proportionate (on the basis of use). Plant &
Machinery is depreciated @ 10% per annum on straight line method.
Provision for doubtful debts is to be maintained @ 5%
• Net loss for the period is Rs. 75,000.
There is no closing stock found at the end of the accounting period
Books of accounts are closed on 30″ June each year.
Required:
Based on the above information, you are required to calculate the amount of:
1. Gross profit
2. Purchases
3. Net book value of Plant & Machinery.

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