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Question -

From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.

Account Title

Debit Amount Rs

Credit Amount Rs

Stock as on April 01, 2016

16,000

 

Purchases and Sales

67,600

1,12,000

Returns inwards and outwards

4,600

3,200

Carriage inwards

1,400

 

General expenses

2,400

 

Bad debts

600

 

Discount received

 

1,400

Bank over draft

 

10,000

Interest on bank overdraft

600

 

Commission received

 

1,800

Insurance and taxes

4,000

 

Scooter expenses

200

 

Salaries

8,800

 

Cash in hand

4,000

 

Scooter

8,000

 

Furniture

5,200

 

Building

65,000

 

Debtors and Creditors

6,000

16,000

Capital

 

50,000

Closing stock Rs 15,000.



Answer -

Trading Account as on March 31, 2017

Dr.

 

 

 

 

 

 

Cr.

Particulars

 

Amount

Rs

Particulars

 

Amount

Rs

Opening Stock

 

16,000

Sales

1,12,000

 

Purchases

67,600

 

 

Less: Sales Return Inwards

(4,600)

1,07,400

 

Less: Return Outwards

(3,200)

64,400

Closing Stock

 

15,000

Carriage Inwards 

1,400

 

 

 

 

Profit and Loss (Gross Profit)

 

40,600

 

 

 

 

 

 

 

 

 

 

 

 

 

1,22,400

 

 

 

1,22,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit and Loss Account as on March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

General Expenses

2,400

Trading (Gross Profit)

40,600

Bad Debts

600

Discount Received

1,400

Interest on Bank Overdraft

600

Commission Received

1,800

Insurance and Taxes

4,000

 

 

Scooter Expenses

200

 

 

Salaries

8,800

 

 

Net Profit

27,200

 

 

 

43,800

 

43,800

 

 

 

 

 

Balance Sheet as on March 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Capital

50,000

 

Building

 

65,000

 

Add: Net Profit

27,200

77,200

Furniture

 

5,200

 

 

 

 

Scooter

 

8,000

Creditors

 

16,000

Debtors

 

6,000

Bank Overdraft

 

10,000

Closing Stock

 

 

15,000

 

 

 

 

Cash in Hand

 

 

4,000

 

 

 

1,03,200

 

 

 

1,03,200

 

 

 

 

 

 

 

 

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