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Question -

Prepare trading and profit and loss account and balance sheet of M/s Royal Traders from the following balances as on March 31, 2017.

Debit balances

Amount Rs

Credit balances

Amount Rs

Stock

20,000

Sales

2,45,000

Cash

5,000

Creditors

10,000

Bank

10,000

Bills payable

4,000

Carriage on purchases

1,500

Capital

2,00,000

Purchases

1,90,000

 

 

Drawings

9,000

 

 

Wages

55,000

 

 

Machinery

1,00,000

 

 

Debtors

27,000

 

 

Postage

300

 

 

Sundry expenses

1,700

 

 

Rent

4,500

 

 

Furniture

35,000

 

 

Closing stock Rs 8,000.



Answer -

Trading Account as on March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Opening Stock

20,000

Sales

2,45,000

Purchases

1,90,000

Closing Stock

8,000

Carriage on Purchases

1,500

Profit and Loss (Gross Loss)

13,500

Wages

55,000

 

 

 

 

 

 

 

2,66,500

 

2,66,500

 

 

 

 

  

Profit and Loss Account as on March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Trading (Gross Loss)

13,500

 

 

Postage

300

 

 

Sundry Expenses

1,700

 

 

Rent

4,500

Net Loss

20,000

 

 

 

 

 

20,000

 

20,000

 

 

 

 

 

 

Balance Sheet of M/s Royal Traders as on March 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Capital

2,00,000

 

Machinery

 

1,00,000

 

Less: Net Loss

(20,000)

 

Furniture

 

35,000

 

Less: Drawings

(9,000)

1,71,000

Debtors

 

27,000

 

 

 

 

Closing Stock

 

8,000

Creditors

 

10,000

Bank

 

10,000

Bills Payable

 

4,000

Cash

 

 

5,000

 

 

 

 

 

 

 

 

 

 

 

1,85,000

 

 

 

1,85,000

 

 

 

 

 

 

 

 

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