Question

Prepare a Trading, Profit and Loss A/c. and Balance Sheet of M/s. Sultan Enterprises for the year ended 31st March, 2010 from the following Trial Balance:

Trial Balance as on 31.03.2010
Heads of Accounts	Dr. (₹)	CR. (₹)
Opening Stock	15,000
Salary	2,400
Purchase & Sales	80,000	1,20,000
Machinery	40,000
Returns	4,000	5,000
Commission Received		6,000
Investments	10,000
Interest on Investment		1,200
Carriage on Purchase	3,000
Rent & Rates	4,000
Debtors & Creditors	22,800	15,700
Bills Receivable & Bills Payable	3,400	4,100
Cash-in-hand	6,400
Wages	18,600
Discount Allowed	5,200
Royalty Paid	12,000
Discount Received		6,000
Drawings and Capital	1,200	70,000
	2,28,000	2,28,000

Closing Stock was ₹ 15,250.

Answer 1

In the Book of M/s. Sultan Enterprises
Dr.	Trading Account				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock		15,000	By Sales	1,20,000	1,16,000
To Purchase	80,000	75,000	Less: Return inwards	(4,000)
Less: Returns outwards	(5,000)		By Closing Stock		15,250
To Royalty paid		12,000
To wages		18,600
To Carriage on Purchase		3,000
To P/L A/c		7,650
(Gross Profit)		1,31,250			1,31,250

 

Dr.	Profit and Loss Account  For the year ending 31st March, 2010		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Salary	2,400	By Trading A/c (Gross Profit)	7,650
To Rent and Rates	4,000	By Commission Received	6,000
To Discount Allowed	5,200	By Interest on Investment	1,200
		By Discount Received	6,000
To Net Profit	9,250
	20,850		20,850

 

Balance Sheet as at 31st March, 2010
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)
Capital	70,000	78,050	Machinery	40,000
Add: Net Profit	9,250		Investment	10,000
	79,250		Debtors	22,800
Less: Drawings	(1,200)		Bills receivable	3,400
Creditors		15,700	Cash in hand	6,400
Bills payable		4,100	Closing Stock	15,250
		97,850		97,850