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Question -

Prepare trading and profit and loss account from the following particulars of M/s Neema Traders as on March 31, 2017.

Account Title

Debit Amount
Rs

Account Title

Credit Amount
Rs

Buildings

23,000

Sales

1,80,000

Plant

16,930

Loan

8,000

Carriage inwards

1,000

Bills payable

2,520

Wages

3,300

Bank overdraft

4,720

Purchases

1,64,000

Creditors

8,000

Sales return

1,820

Capital

2,36,000

Opening stock

9,000

Purchases return

1,910

Machinery

2,10,940

 

 

Insurance

1,610

 

 

Interest

1,100

 

 

Bad debts

250

 

 

Postage

300

 

 

Discount

1,000

 

 

Salaries

3,000

 

 

Debtors

3,900

 

 

 Stock on March 31, 2017 Rs 16,000.



Answer -

Trading Account as on March 31, 2017

Dr.

 

 

 

 

 

 

Cr.

Liabilities

Amount

Rs

Assets

Amount

Rs

Opening Stock

 

9,000

Sales

1,80,000

 

Purchases

1,64,000

 

 

Less: Sales Return

(1,820)

1,78,180

 

Less: Purchases Return

(1,910)

1,62,090

Closing Stock

 

16,000

 

 

 

 

 

 

 

 

Carriage Inwards

 

1,000

 

 

 

 

Wages

 

3,300

 

 

 

 

Profit and Loss (Gross Profit)

18,790

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,94,180

 

 

 

1,94,180

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit and Loss Account as on March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Insurance

1,610

Trading (Gross Profit)

18,790

Interest

1,100

 

 

Bad Debts

250

 

 

Postage

300

 

 

Discount

1,000

 

 

Salaries

3,000

 

 

Net Profit

11,530

 

 

 

18,790

 

18,790

 

 

 

 

  

Balance Sheet as on March 31, 2017

Liabilities

Amount
Rs

Assets

Amount
Rs

Capital

2,36,000

 

Building

23,000

 

Add: Net Profit

11,530

2,47,530

Plant

16,930

 

 

 

 

Machinery

2,10,940

Loan

 

8,000

Debtors

3,900

Creditors

 

8,000

Closing Stock

16,000

Bills Payable

 

2,520

 

 

Bank Overdraft

 

4,720

 

 

 

 

 

 

 

 

 

 

 

2,70,770

 

2,70,770

 

 

 

 

 

 

 

 

 

 

 

 

 

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