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Question -

The following is the Trial Balance of Mr. Deepak as on March 31, 2017. You are required to prepare trading account, profit and loss account and a balance sheet as on date:

Account title

Debit Amount Rs

Account title

Credit Amount Rs

Drawings

36,000

Capital

2,50,000

Insurance

3,000

Bills payable

3,600

General expenses

29,000

Creditors

50,000

Rent and taxes

14,400

Discount received

10,400

Lighting (factory)

2,800

Purchases return

8,000

Travelling expenses

7,400

Sales

4,40,000

Cash in hand

12,600

 

 

Bills receivable

5,000

 

 

Sundry debtors

1,04,000

 

 

Furniture

16,000

 

 

Plant and Machinery

1,80,000

 

 

Opening stock

40,000

 

 

Purchases

1,60,000

 

 

Sales return

6,000

 

 

Carriage inwards

7,200

 

 

Carriage outwards

1,600

 

 

Wages

84,000

 

 

Salaries

53,000

 

 

Closing stock Rs 35,000.



Answer -

Trading Account as on March 31, 2017

Dr.

 

 

 

 

Cr.

Particulars

 

Amount

Rs

Particulars

 

Amount

Rs

Opening Stock

 

40,000

Sales

4,40,000

 

Purchases

1,60,000

 

 

Less: Sales Return

6,000

4,34,000

 

Less: Purchases Return

(8,000)

1,52,000

Closing Stock

 

35,000

 

 

 

 

 

 

Lighting (Factory)

 

2,800

 

Carriage Inwards

 

7,200

 

Wages

 

84,000

 

Profit and Loss (Gross Profit)

1,83,000

 

 

4,69,000

4,69,000

 

 

 

 

 

 

 

 

 

 

 

 

Profit and Loss Account as on March 31, 2017

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Insurance

 

3,000

Trading (Gross Profit)

 

1,83,000

General Expenses

 

29,000

Discount Received

 

10,400

Rent and Taxes

 

14,400

 

 

 

 

Travelling Expenses

 

7,400

 

 

 

 

Carriage Outwards

 

1,600

 

 

 

 

Salaries

 

53,000

 

 

 

 

Net Profit

 

85,000

 

 

 

 

 

 

 

1,93,400

 

 

 

1,93,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet as on March 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Capital

2,50,000

 

Plant and Machinery 

1,80,000

 

Add: Net Profit

85,000

 

Furniture 

16,000

3,35,000

 

Sundry Debtors 

1,04,000

 

Less: Drawings

(36,000)

2,99,000

Closing Stock 

35,000

 

 

Bills Receivable 

5,000

Creditors 

50,000

Cash in Hand 

12,600

Bills Payable 

3,600

 

 

 

 

 

3,52,600

3,52,600

 

 

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