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Question -

The following are the extracts from the trial balance of M/s Bhola and Sons as on March 31, 2017

Account title

Debit

Rs

Credit

Rs

Opening Stock

2,00,000

 

Purchases

8,10,000

 

Sales

 

10,10,000

 

10,10,000

10,10,000

 

 

 
(Only relevant items)
Closing Stock as on date was valued at Rs 3,00,000.
You are required to record the necessary journal entries and show how the above items will appear in the trading and profit and loss account and balance sheet of M/s Bhola and Sons.



Answer -

Books of M/s Bhola and Sons

Journal

Date

 

Particulars

 

L.F.

Debit

Amount

Rs

Credit Amount Rs

2017

 

 

 

 

 

 

Mar.31

Trading A/c

Dr.

 

10,10,000

 

 

 

To Opening Stock A/c

 

 

 

2,00,000

 

 

To Purchases A/c

 

 

 

8,10,000

 

(Balances from Purchases Account and Stock Account

transferred to Trading Account)

 

 

 

 

 

 

 

 

 

 

Mar.31

Sales A/c

Dr.

 

10,10,000

 

 

Closing Stock A/c

 

 

3,00,000

 

 

 

To Trading A/c

 

 

 

13,10,000

 

(Balance from sales and closing stock transferred

to Trading Account)

 

 

 

 

 

 

 

 

 

 

Mar.31

Trading A/c

Dr.

 

3,00,000

 

 

 

To Profit and Loss (Gross Profit) A/c

 

 

 

3,00,000

 

(Balance of Trading Account (gross profit) transferred

to Profit and Loss Account)

 

 

 

 

 

 

 

 

 

Trading Account as on March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Opening Stock

2,00,000

Sales

10,10,000

Purchases

8,10,000

Closing Stock

3,00,000

Profit and Loss A/c – Gross Profit

3,00,000

 

 

 

 

 

 

 

13,10,000

 

13,10,000

 

 

 

 

 

Balance Sheet as on March 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

 

 

Closing Stock

3,00,000

 

 

 

 

 

 

 

 

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