Question

From the following balances obtained from the books of Mr. Ganesh, prepare trading and profit and loss account.

Particulars	₹	Particulars	₹
Stock on 01.01.2017	8,000	Bad debts	1,200
Purchases for the year	22,000	Trade expenses	1,200
Sales for the year	42,000	Discount allowed	600
Expenses on purchases	2,500	Commission allowed	1,100
Financial charges paid	3,500	Selling expenses	600
Expenses on sale	1,000	Repairs on office vehicles	600

Closing stock on December 31.12.2017 was ₹ 4,500

Answer 1

Trading and Profit & loss account
of Mr. Ganesh

Dr.                                                                                             Cr.

Particulars	₹	Particulars	₹
To Opening stock	8,000	By Sales	42,000
To Purchases	22,000	By Closing stock	4,500
To Expenses on purchases	2,500
To Gross profit c/d	14,000
	46,500		46,500
To Financial charges	3,500	By Gross profit b/d	14,000
To Expenses on sale	1,000
To Bad debts	1,200
To Trade expenses	1,200
To Discount allowed	600
To Commission allowed	1,100
To Selling expenses	600
To Repairs on office vehicles	600
To Net Profit c/d	4,200
	14,000		14,000