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Question -

The following trial balance is extracted from the books of M/s Ram on March 31, 2017. You are required to prepare trading and profit and loss account and the balance sheet as on date:

Account title

Amount

Rs

Account title

Amount Rs

Debtors

12,000

Apprenticeship premium

5,000

Purchases

50,000

Loan

10,000

Coal, gas and water

6,000

Bank overdraft

1,000

Factory wages

11,000

Sales

80,000

Salaries

9,000

Creditors

13,000

Rent

4,000

Capital

20,000

Discount

3,000

 

 

Advertisement

500

 

 

Drawings

1,000

 

 

Loan

6,000

 

 

Petty cash

500

 

 

Sales return

1,000

 

 

Machinery

5,000

 

 

Land and building

10,000

 

 

Income tax

100

 

 

Furniture

9,900

 

 



Answer -

Trading Account as on March 31, 2017

 

Dr.

 

 

 

 Cr.

 

Particulars

Amount

Rs

Particulars

Amount

Rs

 

Purchases

 

 

50,000

Sales

80,000

 

 

Coal, Gas and Water

 

 

6,000

 

Less: Sales Return

1,000

79,000

 

Factory Wages

 

 

11,000

 

 

 

Profit and Loss (Gross Profit)

12,000

 

 

 

 

 

79,000

79,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit and Loss Account as on March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Salaries

9,000

Trading (Gross Profit)

12,000

Rent

4,000

Apprenticeship Premium

5,000

Discount

3,000

 

 

Advertisement

500

 

 

Net Profit

500

 

 

 

 

 

 

 

17,000

 

17,000

 

 

 

 

 

Balance Sheet as on March 31, 2017

 

Liabilities

 

Amount

Rs

Assets

 

Amount

Rs

 

Capital

20,000

 

Machinery

 

5,000

 

 

Add: Profit and Loss (Net Profit)

500

 

Land and Building

 

10,000

 

 

 

20,500

 

Furniture

 

9,900

 

 

Less: Drawings

(1,000)

 

Loan (Given)

 

6,000

 

 

Less: Income Tax

(100)

19,400

Debtors

 

12,000

 

 

 

 

 

Petty Cash

 

500

 

Loan (Taken)

 

10,000

 

 

 

 

Creditors

 

13,000

 

 

 

 

Bank Overdraft

 

1,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43,400

 

 

 

43,400

 

 

 

 

 

 

 

 

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